Oshawa DD regulations resolved as Uber threat looms

By Joel Wittnebel/The Oshawa Expres

The city seems to have successfully put out one fire – however, another that has threatened for some time is starting to bloom.

The city’s corporate services committee saw councillors approve a new, altered version of the designated driver service bylaw that had been previously approved in the spring.

That original version was slammed by the industry that claimed the insurance policy required by the city’s bylaw did not actually exist. Upon further investigation by city staff this summer, that was found to be true.

“Staff conducted a review of the insurance requirements in partnership with local insurance brokers and DD brokers and found that while an insurance product as stipulated in the Licensing By-law is offered for other business operations, it is not presently being offered for the DD industry,” a report presented to councillors reads.

In a recommendation to councillors, staff suggested removing additional requirements such as liability for damage to automobiles in the care of the policy holder, and instead stick to a $2-million commercial general liability policy, which is currently being offered by one unnamed local broker.

That recommendation carried through committee and will go to council for final approval on Sept. 26. DD businesses will have until the beginning of 2017 to make the proper changes to abide by the new bylaw.

However, those changes did nothing to calm the nerves of those from the taxi industry, who spoke to councillors about the new threat posed by Uber and other ride-sharing companies.

In a letter from the taxi industry, the city is urged to “enforce the existing bylaws and make it known that unregulated gypsies, Private Transportation Company’s (sic) such as Uber, Lyft, Sidecar, Etc are operating illegally and are not welcome until proof of their need and suitable regulations are established for the safety of the public and the continued viability of Oshawa’s Taxi Industry.”

An enclosed petition contained nearly 155 signatures.

“We have a growing concern,” said Tammy Karantinas, a veteran of the taxi industry and the petition’s author.

“Our income has changed from Uber drivers or DD drivers,” she says, noting that some drivers income has been slashed in half due to loss of business from the unregulated competitors.

The same was said by Neal Mattice, a taxi driver and manager.

“It’s impossible to operate a regulated business,” he told councillors.

Currently, cab drivers are required to renew their taxi permits every two years at a cost of $180. Under a city bylaw, they are also required to take a customer service course at a cost of $600.

While the taxi bylaw is scheduled for review, Jerry Conlin, the city’s director of municipal law enforcement and licensing services, says there is currently no established timeline for that process.

Conlin says the issue of Uber should be tackled first.

“We need to look at how we’re going to handle that new part of the industry,” he said, noting that it “should be done very quickly.”

Currently, several Uber drivers operate within the city, which technically is in violation of the city’s bylaw – something Mayor John Henry says is very concerning.

However, Henry adds that while these aspects of the “sharing economy” are ways of the future,  municipalities need assistance in managing the regulations.

“It’s impossible for us as individual municipalities to manage this,” he says. “We need some provincial help to regulate this.”