City warns of crackdown as Uber rideshare launches in Edmonton

Uber launched its uberX rideshare program in Edmonton on Thursday with fanfare as city officials vowed to crack down onthe unlicensed service if it startedcharging for rides.

Uberdrivers spent the day offering free rides and doing on-demand pickups of winter clothing donations around Edmonton which is fine for now, saidVehicle for Hire director GarryDziwenka.

However, Dziwenkacautioned they would be on the lookout for any "bandit" taxidriver who takes money from a passenger.

If they are caught operating anUbertaxi, they will be subject to a $1,000 fine under the vehicle for hire bylaw and a $400 fine for the business license bylaw, he said.

The service uses asmartphoneapp to connect drivers who use their own vehicles to give rides to others, offering fares cheaper than a traditional taxi company.

Unlike city taxis, Uberdrivers operate without the Class 1, 2 or 4 licence required under the Transit Safety Act, and are notlicensedby the city.

Theprogram is also violating other city taxi requirements which states all vehicles must have city licence plates and be recognizable by a certain colour pattern, Dziwenkasaid. Taxis also must pass city-mandated mechanical inspections.

Uber says its drivers mustfirst pass a police background check and a thorough review of their driving record.

City considers injunction

When asked ifUbertried to work with the city before launching,Dziwenkareplied, Define work.

They met with me, they told me their business model, but they made it clear to me that they had no intention of being licensed, he said. They consider themselves an appa technology companynot a transportation company.

Dziwenkasaid the city will be watchingUberintently and may seek a court injunction to prevent the company from operating.

The controversy didn't stop former mayor Bill Smith from taking theceremonial first ride in an Edmonton Uber vehicle Thursday morning.

Its great to see innovative and new business models like Uber come to Edmonton, Smith said in a statement.

Ive always believed that embracing change is the best path to success. Ubers technology will create opportunity and more transportation options for our citizens, helping this city continue to grow.

Uber's general manager of regional expansion Jeff Weshler was also on hand at the launch.

Ubers arrival in Edmonton marks an exciting moment for the residents of Alberta. By providing a service that responds to the needs of todays riders and drivers, we are helping advance the way people and cities move, he said.

Uber first launched in Canada in 2012.Edmonton is the fifth Canadian city the rideshare service has set up in.