HomeMy WebLinkAboutBYL 02-17P1CKE R1 NG
Report to
Executive Committee
Report Number: BYL 02-17
Date: September 5, 2017
From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject: Update on Regulating Transportation Network Companies
- File: L-2000
Recommendation:
1. That this report be received for information purposes;
2. That staff be authorized to schedule a public and industry stakeholder consultation meeting
to receive feedback regarding proposed Transportation Network Company regulations;
3. That staff develop by-law provisions taking into account feedback from the consultation
process and report back to Council at the November 6, 2017 Executive Committee meeting;
and
4. That the appropriate City of Pickering officials be authorized to take the necessary actions as
indicated in this report.
Executive Summary: City staff have been monitoring the evolution of regulations pertaining
to Transportation Network Companies (TNC's) with the intent of amending the City's Taxicab
Licensing By-law to introduce provisions regulating Transportation Network Companies in the City
of Pickering. The existing Taxicab By-law prohibits the operation of TNC's, and must be amended
if businesses such as "Uber" are going to be permitted to operate. This report summarizes the
types of regulations relating to Transportation Network Companies that have been introduced in
other municipalities and outlines the direction that staff recommend to proceed with in order to
enact similar regulatory by-law requirements. A public consultation process will be undertaken
with Council approval.
Financial Implications: This Report has no financial implications. Any licensing fees for
Transportation Network Companies will be set out in the proposed Taxicab By-law amendments to
be considered by Council in November.
Discussion: The Municipal Act, 2001 provides municipalities with the ability to license
businesses in order to ensure public safety, consumer protection and security. Through the
licensing process, the Taxicab industry has been heavily regulated to set minimum standards for
drivers and vehicles, establish the fares to be charged, and provide a means to address issues
with drivers and vehicles through enforcement. With the introduction of ride -sharing mobile
applications, the regulatory framework applicable to taxicabs has been substantially undermined
BYL 02-17
Subject: Regulating Transportation Network Companies
September 5, 2017
Page 2
and governments across the globe have encountered significant obstacles in attempting to
enforce existing regulatory policies on the Transportation Network Companies facilitating ride -
sharing use.
The Sharing Economy was the subject of a report completed by Mars Solutions on behalf of the
Province of Ontario and the City of Toronto. It recommended that municipalities should set a goal
to develop ideas for effective regulation that create public value, support innovation and reduce
administrative burden.
A primary function of the Sharing Economy Report dealt with how to regulate "ride -sharing"
services such as Uber. This type of company, referred to as a Private Transportation Provider, or
as a Transportation Network Company, utilizes a mobile application to connect passengers with
drivers for hire, and include companies such as Uber and Lyft. For the purposes of this report,
they will be referred to as a Transportation Network Company or TNC.
The Report also recommended that municipalities review the regulations governing the Taxicab
Industry to establish a "more level playing field" for all vehicle for hire related businesses. The
City's review of the Taxicab Licensing By-law has also included identifying areas where current
licensing by—law regulations might be amended or removed to lessen the regulatory burden on the
Taxicab Industry.
The City of Pickering Taxicab Licensing By-law 6702/06 regulates the Taxicab Industry and was
enacted primarily for the purposes of ensuring public safety and consumer protection. Provisions
included in the by-law regulate:
a) Taxicab tariff rates, authorized charges for waiting
b) Meter inspection and sealing requirements
c) Vehicle standards, including maximum vehicle age, identification requirements,
maintenance standards, information for passengers, driver safety equipment
d) Submission of a Vehicle Safety Standards Certificate
e) Proof of Insurance
f) Driver vetting (including Criminal Records Check, Driver Abstract, Medical Certificate)
g) Driver Training and Testing
h) Trip record requirements
i) Number of Taxicab Plates issued by the City and process for future plate issuance
j) Accessible Taxicab Requirements
k) Acceptable driver and passenger conduct
I) Brokerage Requirements
The current Taxicab Licensing By-law was implemented after a significant review of the industry,
consultation with industry stakeholders and discussions relating to industry issues at the time.
Taxicab vehicles were in extremely poor condition, there were concerns with the level of service,
and how this reflected on the City of Pickering. The standards currently in place improved the
vehicles providing service and the taxicab industry as a whole.
CORP0227-07/01 revised
BYL 02-17 September 5, 2017
Subject: Regulating Transportation Network Companies Page 3
The City's existing Taxicab Licensing By-law prohibits the operation of Transportation Network
Companies, as their vehicles fall within the definition of a taxicab and are prohibited from
operating without a license. As the number of Taxicab plates in operation exceeds the formula for
taxicab plates to be issued, it is impossible for TNC's to obtain a license therefore they are
prohibited from operating.
Currently the largest TNC operating in Canada is Uber. It has implemented operations across the
country and is a standard alternative transportation option in many areas. The business model in
place differs substantially from the taxicab industry, despite the service falling within the applicable
regulations of the Taxicab Licensing By-law.
Listed below are some of the parameters under which Uber currently operates:
• All drivers wishing to apply to the platform undergo a third party criminal check, submit a
driver's abstract, and copy of a valid driver's licence
• Applicants must be over 18 years of age
• Vehicles must be 10 years old or less
• Uber provides blanket fleet insurance to all drivers on their platform while Uber services are
engaged
• Payments are charged to an account, so no cash transactions take place
• Fares are provided to the passenger at the time the request is made, providing the option to
decline the service if the fee charged is not acceptable
• A rider is provided the driver's first name, photo, vehicle model and licence plate at the time
of confirming the ride
• Receipts are provided electronically
• Drivers and passengers are rated after each trip to provide feedback
• All trips are recorded
Municipalities have considered and adopted different strategies in trying to rectify the imbalance
between strict taxicab regulations and limited governance of TNCs. Some municipalities, such as
the City of Barrie, have removed almost all restrictions relating to taxicabs such as limiting taxicab
plates, setting fares, and imposing any vehicle requirements. Taxicab regulations are limited to
basics of insurance, criminal checks and driver's abstracts and vehicle safety standards. This is in
line with reports recommending that consumers will determine acceptable fares, vehicles, etc. by
the choices they make in which service to use. Given the City of Pickering's past experience with
poorly maintained taxicabs, and unreliable services, staff believe this would be a step backward in
ensuring reliable transportation options to the public. City staff are concerned that market forces
alone, in Pickering's small market, are insufficient to assure safe and reliable service.
The City of Pickering's taxicab industry functions as many others. Taxicab brokerages make their
money from taxicab drivers through the payment of dispatch fees, plate and car use, insurance,
etc. Brokerages have little incentive to ensure customers are satisfied with the service provided,
as the customer is not who is paying the brokerage. The City of Pickering does not have a
substantial bar traffic for the taxicab industry. A large percentage of taxicab users are seniors or
CORP0227-07/01 revised
BYL 02-17
Subject: Regulating Transportation Network Companies
September 5, 2017
Page 4
fixed income residents who rely on taxicabs through the traditional service delivery methods
(telephone calls or taxi stands, not mobile applications).
The City of Toronto introduced regulations governing TNCs in 2016. Toronto's TNC provisions
include the same licensing requirements as Pickering would deem essential to ensuring public
safety (criminal reference check, insurance, driver's abstract, vehicle safety standards report)
Vehicle standards are also consistent with the maximum ten year model year accepted through
the City's current by-law. Uber currently requires that all drivers operating in the Greater Toronto
Area obtain a City of Toronto licence, as it is assumed that any driver providing service in the GTA
will be required to deliver or pick up passengers in the City of Toronto. The City of Toronto has
expanded their staffing levels significantly to process the large numbers of TNC driver licences
required.
Smaller municipalities can benefit from the requirements introduced in Toronto, by accepting the
vetting of drivers that has already taken place to obtain a TNC licence with Toronto. New by-laws
in Hamilton and Waterloo Region have introduced regulations for TNCs on a smaller scale than
Toronto. Licensing requirements all mirror what was adopted by Toronto but eliminate licensing of
individual TNC drivers, instead licensing the TNC with an annual and per trip fee. The
Transportation Network Company would be responsible for administering all licensing of drivers
and ensuring compliance with the municipal by-law. This model significantly reduces the
administrative burden on small municipalities that do not have sufficient administrative staff to
process the licensing data required for individual TNC driver licensing.
The TNC would be required to provide the City information regarding drivers, vehicles, trips, etc.
through the licensing requirements regulating the TNC. Existing training provided by the TNC
would be deemed an acceptable alternative to municipal training.
At this point, subject to further public and stakeholder input, City staff support the implementation
of regulations that license TNCs in a manner consistent with existing regulations adopted in other
GTA municipalities . The framework established in Hamilton and Waterloo is the best model for
application in Pickering, based on the consistent principles relating to public safety and the level of
administration required.
As much as it makes sense for Pickering to adopt TNC regulations similar to those in other GTA
municipalities, City staff are concerned about allowing surge pricing. Exposing customers to such
price uncertainty may be unwise, however, it would be difficult to enforce a prohibition on surge
pricing. The best approach to surge pricing may be to allow it only for rides booked through an
app, and only upon clear disclosure in advance. This is the approach to surge pricing taken by all
other GTA municipalities.
CORP0227-07/01 revised
BYL 02-17
Subject: Regulating Transportation Network Companies
September 5, 2017
Page 5
It is recommended that all vehicle for hire services (both taxicabs and TNCs) be required to meet
the following minimum standards:
• Proof of liability insurance
• Vehicle safety standard certificate and submit vehicle for inspection upon request
• Driver Criminal Records Search & Driver Abstract
• Proof of HST registration (if required by CRA)
• Identification for both vehicles and drivers (photo ID, and vehicle identifier)
• Records of all trips, including identity of driver providing trip, location, fare, etc.
• Driver Training, including accessible service needs
• Maximum vehicle model year
While some changes are recommended to reduce requirements for taxicab driver licensing, such
as the elimination of the requirement for a medical certificate and driver refresher training, staff do
not recommend the complete repeal of all driver and vehicle standards. While consumers'
choices will determine the success of the service providers, there must still remain a means to
address service issues. Brokerages do not maintain the same level of participation in Pickering
that is the case in larger cities like Toronto. If all mandatory standards are repealed, services
provided will be negatively impacted.
Accessible Service is currently provided by taxicabs only. Any requests for accessible service
received by a TNC are referred to local taxicab brokerages. The City of Pickering currently has 3
dedicated accessible taxicab plates, as well as several other accessible vehicles providing service
through regular taxicab plates.
This lack of service to passengers with accessible needs is another issue that needs to be
addressed with TNCs. In some cases, TNCs are required to pay a surcharge of $0.06 per trip to
fund alternate accessible service options. When licensing provisions are implemented for TNCs
this issue must be addressed through the provision of service or the payment of a surcharge.
One recommendation suggests that municipalities should spread the cost of accessible service
rather than place the burden on the passenger, taxicab owner or driver. It proposes that this cost
should be spread out across the industry through licensing fees. This fund can then serve as a
subsidy program to help drive down the cost of retrofitting vehicles for prospective taxicab owners
and drivers. However, how to administer this type of program is still being debated. Staff will
continue to monitor developments in this area. The Accessibility Advisory Committee will also be
requested to provide feedback on this issue.
Upon adopting licensing provisions for TNCs, staff recommend the ongoing review of changes
implemented, reporting on safety issues, customer concerns, and TNC compliance with
regulations.
CORP0227-07/01 revised
BYL 02-17
Subject: Regulating Transportation Network Companies
September 5, 2017
Page 6
Attachment No. 1 to this report is a draft outline of recommended TNC Regulations; Attachment
No. 2 to this report is the proposed revisions to the Taxicab Licensing By-law; and Attachment
No. 3 is a comparison of various municipal regulations relating to TNCs, which is provided for
Council's information.
This information will be circulated for public consultation to industry stakeholders, posted on the
City's website and presented at a public meeting for feedback. Following this process staff
recommend that a report be brought back to Council for review.
Attachments:
1. Recommended TNC Regulations
2. Proposed Revisions to Taxicab Licensing By-law
3. Vehicle for Hire Regulations Comparison
Prepared By:
Kimberly Thompson, CMM III, CPSO
Appro d/Endorsed By:
Paul Big
Manager, Municipal Law Enforcement Services Director,', Crparate Services & City Solicitor
KT:kt
Recommended for the consideration
of Pickering Cit Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
1
2d7
CORP0227-07/01 revised
ATTACHMENT#_TO REPORT#
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PICKERING
Recommended Transportation Network Company Regulations:
• Licence all Transportation Network Companies
• Base licence fees on number of vehicles in TNC fleet
• Required all TNCs to only utilize drivers that possess a City of Toronto Private
Transportation Company Driver's licence
• Require TNCs to provide accessible service or pay a voluntary surcharge to fund
• Require each TNC to obtain and provide proof of Commercial General Liability
fleet insurance of $5,000,000.00 covering all drivers and passengers while
engaged in providing TNC services
• Limit TNC trips to those pre -arranged through the use of an "app"
• Set a vehicle maximum age limit of ten years
• Require TNCs to provide access to platform for enforcement purposes
• Require TNCs to provide information requested by the City within 2 business days
• Require all TNCs to provide quarterly reports to the City regarding drivers, trips,
complaints
• Require full disclosure of any surge pricing in the form of the amount to be charged
prior to the customer accepting the service
• Prohibit TNC drivers from accepting cash
• Require vehicle identifier on all TNC service provider's vehicles
• Require TNC disclose driver name and photo, vehicle make, model and licence
plate information and the current location of the PTP vehicle to the passenger
upon acceptance of service
• Prohibit smoking in all TNC vehicles
• Demonstrate adequate security measures are in place to ensure personal data
collected relating to passengers and drivers is protected
• Provide a link to rate or comment on the PTP driver and PTP vehicle
• Provide an electronic receipt to the passenger at the end of the service
ATTACHMENT# `--° TO REPORT# E5L
PICKERING
Proposed Revisions to Taxicab Licensing By-law 6702/06
• Remove the requirement for a medical certificate from Taxicab Driver's License
application
• Remove the requirement for an offer of employment for Taxicab Driver's License
Applicaton
• Eliminate Taxicab Driver Refresher Training requirement
• Eliminate Taxicab Driver personal appearance standards
• Eliminate two-way radio regulations
• Eliminate requirement for Emergency 911 flashing light
• Eliminate requirement for GPS emergency alert system
• Eliminate requirement for street guide in Taxicab
• Eliminate Taxicab Vehicle standards relating to seat width and number of doors
• Set fare on meter as a maximum, individuals may choose to charge less provided
meter is left running to display actual fare
• Eliminate minimum hours of operation per week requirements
• Permit advertising medium approved by the City
• Remove Clean Air Cab Plate provisions
• Decisions of Taxicab Advisory Committee in regarding to licensing applications or
appeals become final and binding
• Revise Taxicab Driver Training Curriculum to reduce timeframe and areas covered
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