City of Surrey not allowed to fine Uber drivers over licensing, judge rules

A B.C. Supreme Court justicehas ordered the City of Surrey to stop ticketing unlicensed Uber drivers working within its borders, handing a victory to the ride-hailing company and prompting themayor to giveup a months-longfight against the business.

Justice Veronica Jackson read her decision byconference call in court Friday morning. She foundUberwould face a loss of revenue if drivers were regularly fined, in partbecause the fines would deter drivers from working in Surrey.

She also said city bylaw officers had been unfairly ticketing Uber drivers for not having a municipal business licence, while the city refused to issue any such licences.

"Surrey has been trying to ride two horses at once," said Jackson.

Uberapplied for an injunctionagainst the municipality last week.The company said the city's plan to hit ride-sharing drivers with daily$500 fines wasillegal under the Motor Vehicle Act, and wanteda court order to stop the practice.

Surrey Mayor Doug McCallumpromised to fine Uber drivers daily after the service launched in Metro Vancouver last month.McCallum, a longstanding ally of the taxi industry, said Uberwas operating illegally within his city.

McCallum conceded in a statement shortly after Jackson read her ruling aloud.

"Time to move on," the mayor wrote.

The Passenger Transportation Board (PTB) approvedUber and other ride-hailing companies to operate in the Lower Mainland, including Surrey, on Jan. 23, but McCallumhad said the ride-hailing companies have an "unfair advantage" over the taxi industry.

Theprovince hassaid local governmentscan enact rules and unique fees around drop-off and parking in granting local licences, butcannotdeny licences to companies outright.

Metro Vancouver mayors have endorsed plans for a region-wide business licence for ride-hailing companies that would create a single set of requirements for companies like Uber and Lyft.

McCallum said in his statement Friday the city will now co-operate with the Mayors' Council as it develops the licence, "to ensure a level playing field between ride-hailing and taxis."

Michael van Hemmen, Uber's head of western Canadaoperations, called Friday "a good day."

"We've seen positive movement from Surrey and we're pleased the mayor has signaled that the City of Surrey will be looking to participate in the inter-municipal business licence that the region is working on."

The department head added any existing tickets issued to Uber drivers "should be resolved without any difficulties" in lightof Friday's ruling.

On Thursday, the Vancouver Taxi Associationlost its legal bidto block ride-hailing operators in Metro Vancouver.The association, which includes nine Metro Vancouver cab companies, asked the court for an injunction to suspend Lyft and Uber's apps until court heard a judicial review of the PTB's company approvals.

Justice Jackson, who presided over both court cases this week, dismissed the association's application. She describedthe taxi association's evidence of revenue decline blamed on ride-hailing competition as "scant at best."

The PTBannounced Friday two more ride-hailing companies are now approved for operations in B.C. Apt Rides and Kabu Ride are both permitted tooperate in the Lower Mainlandand in Whistler, while Kabu will extend to the Capital Regional District, theOkanagan, the Kootenays, the Cariboo, "B.C. North Central" and parts of Vancouver Island.