Uber threatens to leave Toronto if insurance and licensing fees become reality

Uber is ready to throw in the towel should an upcoming Toronto City Hall debate not rule in the ride-share company’s favour

Commercial Solutions

By

The matter of Uber’s legality in the City of Toronto will be up for ferocious debate in the coming week – and the ride-share company hasn’t been shy to state they’ll leave the city altogether should talks not go their way.

Ian Black, general manager of Uber, stated to the Toronto Sun that the ridesharing company wouldn’t hesitate to end operations in the GTA should a proposed bylaw by the licensing and standards committee come to fruition.

The committee voted on April 15 against legalizing Uber in Toronto, and brought forth new regulations for vehicle-for-hire and ground transportation industries. The proposed changes would require ride-share drivers to take out a minimum $2-million personal liability policy, a $5-million commercial liability policy, as well as pay a non-refundable $20,000 licensing fee.

Currently, Uber drivers operate without regulations in the city meaning many may lack the coverage needed to protect themselves or passengers in an accident.

“I would think most UberX drivers aren’t properly rated, or getting insurance with the endorsement,” says Adam Mitchell, president of Mitchell & Whale Insurance.

He adds that the majority of Uber drivers likely believe they are sufficiently covered, as the company claims it provides every Uber ride with coverage.

“That’s my big gripe – I wish Uber was completely forthcoming, blatantly saying, ‘our policy does not cover your vehicle for physical damage,” he says.

“A normal auto policy will cover you for the medical, will cover you for the accident benefits, and the liability, but no one (in the case of Uber) will step up to pay for or replace the vehicle.”

The Licensing and Standards Committee claims this ‘wild west’ environment is the motivation behind their stringent proposal, stating in the report released to City Hall, “There are currently more than 45,000 trips per day taken by the public in unregulated vehicles-for-hire. Appropriate regulation governing this industry is a critical public safety matter. The development of this new regulatory framework ensures that these vehicle-for-hire participants are regulated, as are taxicabs and limousines, balancing the City regulatory interests with existing industry practices. ”

Keep up with the latest news and events

Join our mailing list, it’s free!