Taxi service startup, Uber, has run into issues with its smartphone based driving service in Vancouver. The company was testing its service before launch in the Canadian city and was hit by a notice form the Passenger Transportation Board of British Columbia which directed the company to increase their prices to a minimum of $75 as per the law. Uber has had issues with regulations in several of theNorth American locations it has entered in the past.
Uber spoke abou the issue in a blog post and stated that, “The Vancouver Limousine industry is governed by the Passenger Transportation Board of British Columbia. The PTB sets rules for Limousine services, and in Vancouver they have set a minimum rate for any trip of $75 (regardless of distance or time travelled). They’ve asked Uber to raise our rates to $75 per trip, and while we have expressed our view that minimum rates DO NOT benefit consumers, we’ll comply while we work with them to figure out a solution that works for our users.”
Mary Polak, the Minister of Transportation and Infrastructure, may have poured cold water on Uber’s launch plans which are expected to take place this weekend. Her office also commented on the situation and stated that, “Taxi and limousine companies operating in B.C. are licensed under the Passenger Transportation Act with conditions, including the rates they are permitted to charge. Conditions of license for limousine companies include a minimum rate per hour, which is $75 in the Vancouver area. This is intended to ensure a level playing field and to preclude limousines from behaving in the same manner as taxis.”
She went on to add that, “Uber is using rates below those required by the Passenger Transportation Board. We are working with this company, which is providing a new service. However, we must ensure it is fair and that it does not detract from existing businesses that are licensed to operate. In the interim, starting this weekend, the company will use the minimum rate of $75 for each trip.”
Uber’s CEO, Travis Kalanick, pointed out that even though the $75 minimum law exists, other firms are openly working under the required total without any consequences. He told the Georgia Straight that, “Yes, we knew about the $75-per-trip mandate when we looked at entering the Vancouver market. Of course, almost no one was abiding by that rule. Even today, you can call virtually any limo company in town and get rides for far less than $75. And that’s not just the airport limousines that have an exemption from the rules and charge nearly half that.”
Source: iPhone in Canada
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