Halifax eyes new rules to 'level playing field' between taxis, ride-hailing companies

Halifax is considering changes to modernize the taxi system and have the same requirements for both taxi and ride-hail drivers — but Uber argues the move is unnecessary and will negatively impact passengers.

On Monday, Halifax staff brought the bylaw amendments to the transportation standing committee.

They would allow taxi and limousine operators to submit their own proposed rates for municipal approval at any time. Under the current system, which is used by most Canadian cities, council sets them once a year.

Those rates could also vary based on time of day, like an additional charge for a trip during specific hours, but not for special events or in bad weather.

Peter Nightingale, manager of licence standards for Halifax, said a recent survey showed taxis wanted the ability to lower their rates when needed to remain competitive.

“If taxi companies set rates that are unaffordable, then they’re going to lose passengers,” Nightingale said.

Halifax does not regulate rates for ride-hail companies, which the municipality calls transportation network companies (TNCs). That is the current industry standard in Canada, the staff report said.

One change would see drivers for ride-hailing companies be required — as taxi drivers are — to have a valid municipal licence that costs $100 every two years.

This licence requires drivers to pass English language proficiency testing, submit criminal and vulnerable sector background checks, and take Halifax’s in-house online training that covers bylaw criteria, customer service ethics and sexual harassment.

Currently, Halifax only licenses the ride-hailing companies themselves. The companies are required to follow insurance criteria and ensure drivers have the necessary background checks.

Nightingale said while the city knows there are “thousands” of individual Uber drivers within the municipality, it is unclear how many may now apply for a licence since some people may already drive for both a taxi broker and ride-hailing platform.

Jonathan Hamel, public policy manager for Uber in Atlantic Canada, told the committee it has similar online training modules, and Halifax already has the country's "strongest screening system" for drivers.

The new licence fee "will discourage people from driving, reducing transportation options for residents,” Hamel said.

Hamel said licensing individual ride-hail drivers is uncommon in Canada, with only five cities taking that approach.

While Hamel said Uber would welcome any requests from Halifax staff to audit driver background checks, Nightingale said staff do not believe they are “authorized” to receive those sensitive documents under the current bylaw.

An Uber spokesperson told CBC in an email Monday they believe the bylaw makes clear Halifax does have this authority, and their data sharing agreement with the municipality also allows staff to request any supporting documents regarding these checks.

“Many, many TNC regulators choose to conduct periodic audits of Uber’s compliance, and we welcome this oversight of the industry,” said Keerthana Rang. "In the five years Uber has been operational in HRM, staff have chosen not to exercise it for reasons unknown to Uber. In other words, they have never asked.”

Rang also said the new requirements for Uber drivers would "make rides less reliable and more expensive for riders."

Nightingale said while Uber may have training in place, it is important to have one standard for everyone, and Halifax currently has three ride-hailing companies operating in the city. Besides Uber, there is the Canadian platform Uride, and Lyft recently announced it would be coming to Halifax.

Coun. Sam Austin said he sees some of the work as “correcting some errors” in the current system of taxis and ride-hail companies.

“I think the TNCs and the taxis should be as much on the same level playing field as possible, and they’re not right now, so generally I’m supportive of what we’re looking at here,” Austin said.

The committee sent the proposed changes to regional council for final approval.

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