Calgary allows Uber in theory but company says it can't operate under new bylaw

Uber can now operate legally in Calgaryin theory,but the company says it won't resume operations in the city.

City council approved a new bylaw Monday that opens the door for ride-hailing servicesbut stopped short of amending the bylaw to meet Uber's demands.

RamitKar,Uber'sgeneral manager for Alberta, said last week the ride-company "just can't operate" under the bylawas written, and re-iterated that immediately after council approved the regulations with only minimal changes.

• Uber says it 'just can't operate' in Calgary under new bylaw
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"It's a really unfortunate day for riders and drivers in Calgary," Kar told reporters.

"For riders, there's no longer going to be an option that they've been asking for to get transported around the city."

Kar described Calgary's $220 in annual per-driverlicensingfees and relatively stringentrequirements forbackground checks and vehicle inspections as "unworkable" for Uber drivers, particular those who work part-time.

But council wouldn't agree to change thefee schedule or background-check requirements.It did, however,vote to loosen the inspection requirement.

Instead of getting vehicle inspections every six months, the requirement is now oneper year, unlessa vehicle exceeded50,000 kilometres of total travel in the previous year. In that case, six-month inspections would be required.

Kar called onCalgary to adopt rules more similar to those approved by Edmonton last month, which include aper-trip fee of six cents in addition to an annual lump sum of $50,000 paid to the city directly by the company.

That fee formatmakes more sense for the majority ofUberdrivers in the provincial capital, Kar said, who drive less than 10 hours per week.

'We're not followers'

But Coun. JoeMagliocca told CBC News prior to the council meeting that Calgary wouldn't accede to Uber'sdemand that it copy Edmonton's bylaw.

"We're leaders;we're not followers,"Magliocca said. "This is Calgary."

During the meeting, city staff told council an Edmonton-style fee schedule wouldn't cover costs in Calgary and regulation of ride-hailing appswould end up being subsidized by taxpayers.

Coun. Diane Colley-Urquhart said the new bylaw isn't aimed just atUberand noted that,even though it's the world's largest ride-hailing company, it's far from the only one.

"There are a lot of people that are either in the market or intending to enter the market," Colley-Urquhart said.

The new regulations wereapproved by a 14-1 vote, with only Coun. Evan Woolley voting against it on the bylaw'sthird and final reading.

Woolley then introduced a new motion calling on the city staff to meet with Uberand come back with recommendations to tweak the licensing fee schedule and vehicle maintenance requirements but was voted down.

"This isa piece where we've kind of missed an opportunity," saidWoolley.

He called this new technologya "key component" of the "transportation revolution happening across the world right now."

"We want to see the city evolve with the technology, changing economies, all of these things," he said.

More than just Uber

The new bylaw hasbeen months in the making, ever since a judge granted the city'srequest for an injunctionagainst Uber last Novemberafter the companyunilaterally launchedits lowest-cost ride-hailing service, UberX,in Calgary in October.

Uber asserted at the time that the city's existing bylaws governing taxis and limousines don't apply to it, but a judge disagreed and ordered Uber drivers to temporarily stop operating in Calgary, until regulations could be sorted out.

The changes approved Monday modify Calgary'sexisting Livery Transport Bylaw, which governs taxis, limousines and now "private for hire vehicles" which is the city's catch-all term for Uber and services like it.

"This is a modernization of our entire taxi bylaw, with a whole bunch of things in it," Mayor NaheedNenshi said.

Here is a summary of some of the regulationsfor the different vehicle types.