Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences for Uber and its competitors.
According to Uber Canada, Uber is facing a “full-scale” customer revolt as a result of Toronto taxi drivers’ decision to boycott the Uber app.
Toronto’s new rules, which go into effect January 1, require drivers to have taxi-like credentials and to display a chauffeur’s licence at the time of hire.
The rules also ban Uber and UberX drivers in the city from using their own cars.
Uber and other players are expected to respond to Toronto’s new rules in the next few days, with Uber likely to argue that the new regulations are discriminatory and have the impact of forcing Uber to charge higher rates and take more time off of its drivers’ time.
Uber said it would be adding more to its app for taxi-like drivers, but would keep its own website, UberTaxi, up and running.
“We are committed to providing services in Toronto and we continue to work to expand our offerings in the city, including with Uber,” a spokesperson for Uber said in a statement.
Toronto’s new rules come at a time when taxi numbers have plummeted in the city and have been in decline since the start of this year.
On July 1, Toronto Mayor John Tory issued a statement saying the City’s Taxi and Limousine Commission (TLC) will be meeting this week to review the matter.
TLC Chair Michael Thompson and Toronto City Council approved TLC rules on July 15 that include a freeze on the Uber and UberX apps, but the details of the rules and details on freezing the app licences are still not clear.
Toronto’s move comes after San Francisco, New York and a number of other cities put temporary bans on Uber and its competitors.
Uber said it is trying to find a solution to the problem and would be working with the TLC again to get “all of the details” about its situation.
Last month, Uber and UTRAN, its taxi rival, were slapped with a $100-million fine by the California Public Utilities Commission for charging surge
