Posted by & filed under app, business models, Competitive advantage, e-payment, Uber.

Description: City staff in Toronto and Ottawa have developed draft regulations that would create a new set of rules for app-based ride hailing services.

Source: Tech Vibes

Date: April 11, 2016

uber

On Friday, Ottawa City Council’s community and protective services committee voted to approve the new regulations. That means they’ll go before the entire city council for a vote on Wednesday.

If that passes, the new rules will go into effect in September. That would make Ottawa the second city in Canada to license and regulate Uber, after Edmonton.

Under the new rules, Uber and other “private transportation companies,” as the city describes them, will have to pay a license fee to operate in Ottawa. That fee caps out at just over $7,000 a year. There will also be $0.11-per-trip charge.

Both PTCs and their drivers will have to carry insurance. Companies like Uber will have to have $5 million in commercial liability and $5 million in non-owned automobile insurance. Drivers will have to obtain “suitable” insurance.

Drivers will also have to get annual criminal record checks and vehicle inspections. Companies like Uber would be required to provide proof of that to the city on a regular basis.

Taxi drivers say they don’t like the new rules and that they’ll continue protesting.

Read More.

Questions for discussion:

1. Do you use Uber or taxis?

2. What could taxi companies do to continue to compete in a relevant market with Uber?

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