Roughly 20,000 trips a day are taken on the peer-to-peer UberX service and polling numbers consistently speak to high levels of consumer satisfaction, particularly around pricing and ease of use. But this praise has come in a marketplace where taxis are subject to reams of regulations while UberX operates essentially unfettered by government oversight. Will consumers still be satisfied when the “playing field is levelled,” a phrase that Mayor John Tory, the Competition Bureau, and cab companies have all used? If the playing field is levelled intelligently, and with the public interest at the heart of councillors’ deliberations, the answer to that question should be yes.

There are a raft of specific issues that will need to be tackled, including insurance coverage, licensing fees, adequate criminal records checks and narrowing the gap around driver training requirements (UberX drivers watch a short tutorial, Toronto cabbies must take 17 days of courses). But, these are all relatively straightforward matters that have been dealt with in many other jurisdictions. There are, however, three critical issues that Toronto needs to get right: the ask, the numbers and the option to use an eraser.

What will the city demand from Uber in exchange for market access? The company’s deal with Boston demonstrates that it will pony up data on its routes — both to inform future tweaks to regulations, and to help officials decide where and when to boost transit routes. Toronto should also press for access to information on driver ratings to better target inspection and enforcement efforts.

Uber has also agreed to impose a per-trip levy in cities ranging from Edmonton to Chicago, which funds transportation priorities like accessible vehicles. To date, most of these fees top out at 30 cents per ride, which would mean about $2 million per year — enough to purchase 40 accessible vehicles a year or retrofit twice that number. As the biggest market in Canada, Toronto should demand at least that much of a levy.

The number of drivers in the city is the second major issue which bears watching. Toronto, like most major cities, has traditionally limited how many plates are available to taxi operators — the number currently stands at 5,000. This cap on supply has made some people who hold dozens of plates very wealthy while also serving to restrict competition. Opening up the market to thousands of UberX drivers (most of whom drive fewer than 10 hours a week) will, ultimately, lead to a more dynamic marketplace but also significant opposition from plate owners as their investments continue to lose value.

This will be the trickiest knot to untangle for councillors. On the one hand, times have changed and investment decisions aren’t back-stopped by governments in most marketplaces. New South Wales in Australia created a transitional fund, generated through a fee on all taxi and Uber rides, to cover losses of recent plate purchasers while New York City has explored limits on the number of UberX drivers. Increasing consumer choice should be prioritized, but consideration should also be given to easing the transition to a new regime for recent plate purchasers.

Article on thestar.com