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Calgary city council approves bylaw amendments on Transportation Network Companies


February 24, 2016   by Canadian Underwriter


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Calgary city council has approved bylaw amendments that would allow Transportation Network Companies (TNCs), such as Uber and Lyft, to operate in the city.

The amended bylaw comes into effect on April 4

The amended bylaw, approved on Monday, creates the “foundation for a robust network that supports transportation options for Calgarians,” the City of Calgary said in a press release. It also allows establishes taxi and limousine providers to negotiate and charge fares through a smartphone app on the same basis as TNCs.

The amended bylaw comes into effect on April 4.

Once the bylaw is in effect, TNC drivers will be able to operate in Calgary if they have:

• An annual operating licence from the city;

• A Valid Class 4 driver’s licence;

• An annual Calgary Police Service background check;

• Proof of valid commercial insurance as required by the Government of Alberta;

• Proof of eligibility to work in Canada; and

• Proof of provincially-approved 134-point mechanical inspection, conducted annually or every 50,000 km whatever comes first.

“I have always supported the modernization and improvement to Calgary’s taxi system,” said Calgary Mayor Naheed Nenshi in the release. “I am very pleased with council’s decision because we will soon be able to provide citizens with more transportation options. This decision delivers on our commitment to better serve our citizens.”

Marc Halat, manager of the city’s compliance services, said that “we’ve listened to citizens, the taxi and limousine industries, and TNCs to develop safe, practical and reliable transportation options. These bylaw amendments support innovation and technology which will provide citizens with better service and options.”

A Canadian Press media report suggested that Uber officials say the rules are too strict, with the fees “too high and the rules too difficult to adhere to.”

With an amended bylaw in place the only outstanding item is Alberta’s decision regarding insurance policies that will cover TNC drivers, the release noted. In Alberta, a standard personal automobile policy does not cover a driver when their vehicle is being used to carry paying passengers or is used as a taxi.

Last July, Alberta’s Superintendent of Insurance reviewed Uber’s insurance policies and found “significant issues with regulatory compliance.” At the time, he said that he was of the view that “Uber’s supplemental insurance policies do not currently meet the requirements of Alberta’s Insurance Act and regulations.” He also issued an advisory notice on ridesharing services and the “insurance risk they currently pose to drivers, passengers and the public,” the release said.

In January, the City of Edmonton became the first in Canada to legalize ridesharing services. The vehicle for hire bylaw allows technology-based companies such as mobile app dispatchers like Uber, to operate legally in Edmonton under a new class called “private transportation providers.” The bylaw comes into effect on March 1.


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