Taxi drivers, Uber executives hold heated debate over industry regulations

CTV Toronto: Debate quickly turns divisive Dozens of taxi drivers packed city hall Wednesday for a debate that could determine the future of their industry. Colin D'Mello reports.

Dozens of cab drivers filled the seats of Toronto City Hall as officials met to discuss regulations for Uber on Wednesday.

"The fact is that technology has changed this business," Toronto Mayor John Tory said Wednesday morning. "I have great sympathy for the plight of taxi drivers and others in the business because their business is being changed by technology."

Tory made the comments as he arrived at City Hall ahead of a meeting of the Licensing and Standards Committee. The committee met to discuss changes to Toronto's taxi industry outlined in a report published last week.

The report recommended that Toronto's base rate for cab fares be reduced from $4.25 to $3.25, in a bid to allow traditional taxis to compete with the ride-sharing app Uber.

The report also recommended that Uber drivers be bound by some of the same regulations cab drivers face, such as the need for proper insurance, vehicle inspections, and background checks.

It suggests updating the definition of a taxicab broker to include technology-based services like Uber.

The ride-hailing app would fall under a newly created licensing category: Transportation Network Companies, or TNC.

Dozens of cab drivers demonstrated in front of Citay Hall and gathered inside the meeting room as part of a protest organized by the Toronto Taxi Alliance. Many cab drivers said they were not satisfied with the recommendations, which they say would create a two-tier system.

But Uber representatives were also there to make a case for themselves.

Tensions flared as each side tried to make its case during the eight-and-a-half-hour meeting, with Coun. Giorgio Mammoliti eventually telling an Uber Canada executive to “get out” of council chambers.

“It is the end of the taxi industry if this report goes through,” Mammoliti said. “It’s the death of the taxi industry.”

But Uber representatives say it is possible for their ride-hailing service and the taxi industry to co-exist.

“If we look to the cities around the world who have Uber, taxi continues to exist,” said Uber Canada executive Ian Black. “There’s no reason that won’t be the same here in Toronto.”

UberX, the most commonly used service provided by Uber Canada, has been operating in Toronto for a year. The service has thus far been able to get around the city's laws, claiming that Uber is a communication service, not a cab company.

Toronto city councillors voted for a crackdown on the ride-sharing service in July, saying the service gave UberX drivers an unfair advantage over cab organizations. Councillors also voted unanimously to review the city's current taxi bylaws.

With a report from Colin D’Mello