Toronto to temporarily cap licences for ride-share drivers

Toronto city council unexpectedly voted on Wednesday to temporarily cap the number of licences for ride-share drivers at current levels until city staff complete a wider report on regulating the vehicle-for-hire industry next year.

Coun. Mike Colle, who is also one of the city's deputy mayors, introduced the surprise motion, which passed 16-7. Colle said that suspending the issuance of new licences would help the city manage greenhouse gas emissions from private transportation companies and ease congestion.

There are currently about 52,000 ride-share licences for drivers working for companies like Uber and Lyft in Toronto, city staff said. About 62 per cent of those drivers do not live in the city, staff said.

Colle's motion was supported by Toronto Mayor Olivia Chow, who argued the move would boost earnings for app workers by cutting down on competition and help limit pollution from vehicles. Chow also defended the hurried introduction of the motion, saying that announcing a potential cap beforehand would have prompted a surge in licence applications.

"We need to put a really good framework, a good system in place so that drivers can make a living, and that we will have a good system without contributing too much on congestion and greenhouse gas emissions," Chow said.

The city's municipal licensing and standards unit is set to submit a comprehensive report on the industry's impact on emissions, congestion and public transit no later than the end of 2024. Colle said the moratorium in his motion would only remain in place until then, though opponents in council expressed concern it would become permanent.

Detractors such as Coun. Shelley Carroll, budget chief, and Coun. Brad Bradford argued that moving ahead with a cap on licences without consulting ride-share companies beforehand could expose the city to legal action and drive up the costs of rides.

Uber Canada said that it "will be reviewing all legal options" in a statement following the vote.

"Mayor Chow's cap will ultimately hurt the diverse group of Torontonians who rely on rideshare as part of their transportation mix and those who drive rideshare for additional income, especially in a time of rising costs," the statement said.

Colle's motion came during a debate on an item, also adopted by council, to mandate all taxi and ride-share vehicles operating in the city be electric by Jan. 1, 2031. A separate motion saw council vote to implement a new grant program to incentivize the private transportation industry's transition to electric vehicles.

In a statement, Lyft said it supports efforts to electrify ride-share vehicles, but "instituting a licensing cap without any research into its implications is counterproductive and will do little to improve congestion downtown.

"Toronto is still recovering from the impacts of the pandemic, and as demand for rideshare continues to rebound, a cap at current levels will inevitably drive up rider fares and wait times," Lyft said.

City council meets again Thursday.