Hope on the horizon for Uber riders, drivers in Toronto, Vancouver and Calgary

Some of Canada’s biggest cities appear to be closer than ever to ending their war with Uber, the commercial ride-sharing operation that has blown open the traditional taxi and limousine business.

One of the biggest optimists? That would be Ian Black, general manager of Uber Canada.

“I think the questions around regulation for TNCs [transportation network companies] like Uber are quickly being settled,” he said in an interview with Yahoo Canada.

After unsuccessfully trying to block it in court, Toronto’s city council signaled that it’s ready to accommodate UberX, the private car-for-hire service, via regulatory changes. It asked Uber to suspend operations in the city until the new rules are in place.

Black said he expects a proposal should go before council by spring but gave no sign Uber will stop offering its services until then.

A private member’s bill that includes plans to regulate app-based services including ride sharing has also passed second reading in the Ontario legislature.

Vancouver, which so far seems to have kept Uber out, is also working on amending its rules but needs the B.C. government to tweak provincial licensing and insurance legislation.

Calgary is also investigating ways of allowing Uber-type services to operate once rule changes are in place, but the company began operating there last month. Mayor Naheed Nenshi warned no one should use Uber or work for it until new regulations are in place.

“Wherever possible we want to work in partnership with regulators and politicians to create regulated framework for ride sharing,” Black said, but “in some instances it makes sense to have consumers and drivers be able to experience that product ahead of a regulatory discussion and that’s certainly the case in Calgary.”

Related content:

Uber facing a rough ride in Canada and abroad

Why doesn’t everybody love Uber?

Will a class-action suit put the brakes on Uber?

In Montreal, however, things seem more fraught. There have been protests by taxi drivers as recently as September and staunch enforcement of existing rules. But even there, Black sounds upbeat, saying he’s encouraged by comments last summer from Quebec Premier Philippe Couillard that he’s open to legalizing services such as Uber.

Uber’s faced a backlash in almost every city where the app-based service has rolled out around the world, and the beefs are largely the same. Operators aren’t required to get commercial liability insurance or undergo any of the training taxi or limo drivers face, nor are fares regulated or predictable.

Users love Uber, taxi industry not so much

While users laud its convenience – the app dispatches the closest UberX car to the waiting customer – the heavily regulated taxi industry is outraged private car owners can operate without the kind of oversight it faces.

Uber provides some insurance coverage for its operators but licensing authorities say the service needs to come under some kind of regulatory umbrella, as is being done in U.S. cities such as New York.

That’s what they’re working on in Vancouver, where Uber has been participating in a roundtable discussion with municipal and provincial officials, representatives of the taxi industry and users, such as disabled persons, seniors and tourism organizations.

A report to Vancouver city council last month on taxi services by chief license inspector Andrea Toma recommended ways of incorporating ride-sharing. The recommendation was amended by a council committee this week, calling on B.C. Transportation and Infrastructure Minister Todd Stone to become involved in setting up the policy framework that would sanction ride-sharing services.

“Council felt that because of the dynamics of how the provincial licensing regime and the city licensing regime [operates], there’s an overlap,” Toma told Yahoo Canada. “They felt that specific to this until the ministry changes their legislation and allows for ride-sharing, there’s really nothing that the city can do.”

The minister hasn’t responded so far.

“While we are not against competition in the taxi industry, we need to ensure that all companies abide by the same rules and regulations to operate in B.C.,” ministry spokeswoman Sonia Lowe said via email.

Uber must be licensed by the provincial Passenger Transportation Board and legislation requires operators to be licensed and have the appropriate insurance issued by ICBC, the Crown auto insurer, Lowe said.

Uber launched its service in Calgary last month despite the city’s plea that it wait until new regulations are in place. Nenshi expressed his disappointment, along with a warning.

“I strongly suggest that you don’t drive for Uber and that you don’t use Uber until the insurance and regulatory issues are sorted out,” he said in a statement to city residents. “If you drive for Uber, you should be aware that you are breaking the law.”

Uber cars may lack insurance coverage, officials warn

Nenshi went on to say there’s no guarantee Uber vehicles would have insurance coverage in the event of an accident, something confirmed by Alberta’s superintendent of insurance.

“Drivers using Uber ride sharing services may believe that Uber’s supplemental insurance provides the necessary coverage,” the superintendent’s office said in a statement last July. “This is currently not the case in Alberta.”

“I am not opposed to changing our laws to allow companies like Uber to operate in Calgary,” Nenshi explained. “In fact, the City has been working hard on this issue for some time.”

Calgary’s Taxi and Limousine Advisory Committee on Tuesday received five options on how to handle outfits like Uber, which city council will mull at a strategic planning meeting Nov. 16. They range from maintaining the status quo and barring TNCs, to parallel or hybrid regulatory regimes, to one limited to ensuring safety or perhaps a self-regulating free market.

Compromises will be needed to integrate ride-sharing services into the regulatory regime, Marc Halat, manager and chief license officer of Calgary’s compliance services.

“We have to find a level of equitability for each of these services to co-exist.,” Halat said in an interview. “If you were to ask me do we over-regulate legacy taxi today, I would have to say absolutely.”

The system of regulating fare and safety has not kept up with technology, he said. A way has to be found to level the playing field without compromising public safety.

“We’ve got to find a happy medium,” said Halat. “Yes I think legacy taxi regulation will come down but you can expect TNCs to come in with some form of oversight.”

Back in Vancouver, Toma said there’s no set timeline to create and implement new regulations. Nor does she know whether Uber will hold off rolling out its service in the city until new rules are in place.

“You’d have to ask them,” she said. “They’re very non-committal in regards to that. I think they make that assessment based on the risk and whatever business criteria they use to assess that.

“I know that they want to work with the regulator. I know that they want to work within a framework.”

No regulation opens the door to continued clashes with taxi industry

Operating in an unregulated environment risks the kind of clashes with the taxi sector seen in other cities, Toma said.

“What we’ve tried to create here is an environment that allows for this dialogue to occur so that we don’t get into these contentious situations like it was in Edmonton and in Toronto,” she said. “But again, at the end of the day, Uber has to decide what’s in their best interest as a business. But they’ve put a lot of effort into this. Everybody has.”

Compromise is possible, said Toma, pointing the successful launch of Ripe Rides, an app-based limo service that looks similar to Uber Black and operates within Vancouver’s regulations. The traditional taxi sector has also moved to be more competitive, launching its own app to hail the nearest cab, no matter which company it belongs to.

Uber’s decision to launch In Calgary last month has complicated things there.

“It’s awkward,” Halat admitted. “Their rationale is they’re showing that it is a much wanted, much needed service for Calgarians. I don’t disagree with that. We haven’t disagreed with that from the get-go.”

That hasn’t stopped Halat’s enforcement squad from ticketing Uber drivers, issuing more than 60 violations so far for unauthorized services. The fine is $1,500, plus another $300 if the driver does not have a Class 4 limo operator’s license.

“The enforcement continues all the while that this practice is operating unlawfully,” he said.

Black would not be drawn on whether Uber might put cars on Vancouver streets if the B.C. and municipal governments don’t move fast enough. He said he wants to support the productive engagement the company’s had with officials so far.

“There will come a time where we want to move forward and where we believe that British Columbians deserve to have transportation options,” he said. “But our focus really is on working productively with the provincial government to find a solution on the regulatory front.”

One thing both sides agree on is that deals struck in cities like Vancouver, Calgary and Toronto can be useful templates for opening the door to Uber elsewhere.

“What cities and provinces care most about is safety and consumer protection,” said Black.