'Hundreds' sign up to be Uber drivers in Hamilton as service launches

Uberhas arrived inHamilton, and the company says "hundreds" of people have signed up to be drivers.

Riders will be able to book anUbercar from theirsmartphonesin Hamilton starting at 2 p.m.,according to a release on the company'swebsite. There were several cars available for pickup at that time downtown.

The move ispart of an expansionintosouthern Ontario that also includesLondon, Guelph and Kitchener-Waterloo. Uber is a ride-sharing company that connects drivers to passengers using a smartphone app. That same app also handles the transaction, and no cash is exchanged.

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The move is meeting witha chilly response from city hall. The city has stated quite bluntly that it doesn't support Uber's current business model, which does not require drivers to acquire taxi licenses.

"The city's position on this matter has not changed," city spokesperson Kelly Anderson said in an email. "Uber has to follow the city's bylaws to operate legally within the City of Hamilton. If they do not follow them there will be enforcement action."

A complicated issue

The company would require a broker's license, which is required under the city's licensing bylaw, according to Ken Leendertse, the city's director of licensing.

He says the city has an "enforcement plan ready" forUber in Hamilton. Drivers could be charged with bylaw infractions, have to go to court and deal with fees. The city already deals with people who are trying to use their car as an unlicensed cab on websites like Kijiji about once a month,Leendertse said, which just doesn't fly.

"There are so many things that need to be done if your vehicle is being used as a taxi," he said. Drivers could also end up losing their insurance should a company find out they're using their vehicle as a business, Leendertse said.

Coun. Aidan Johnson serves on the city's licensing tribunal, and told CBC News that he has been following Uber's expansion into other cities very closely.

"It's a complicated issue for sure," he said.

Fights in other cities

The City of Toronto has had a long battle with Uber. Taxi cabs protested the ride-sharing company, and the city tried, unsuccessfully, to get a permanent injection to halt Uber's operations. Similar injunctions stopped Uber from operating in Calgary and Vancouver.

More recently, City of Toronto councillor Jim Karygiannis asked the Canada Revenue Agency to investigate if Uber is collecting, or skirting, HST.

At the crux of the issue is Uber's belief that it is not a taxi service something Johnson, who is a lawyer, says he's not convinced of. "I am not fully persuaded to all of Uber's argument's that it is not a taxi service," he said. "Tell me what a taxi is, then look at what Uber is and tell me the difference."

But Uber says it's operating a legal business venture, spokesperson Susie Heath said in a statement. "Uber and ridesharing is a new business model distinct from taxi," she said. "We look forward to continuing our work with officials in Hamilton to modernize regulations to encourage innovation, put people first and create safe, reliable and affordable transportation options."

But the city also simply needs the cash taxi licenses provides, Johnson said. "The city makes a great deal of money off our cut of the taxi revenues," he said. "I really want to make sure Uber pays its fair share."

The City's revenues on taxi licenses each year are approximately $500,000.

Creating complete streets

The service could, he said, help Hamilton along in a push for complete streets, though. If someone uses Uber in conjunction with riding a bike and walking instead of driving, it's a boost for the city, he said.

"The question then is regulation and taxation."

Cab companies are also decisively against Uber moving in. Blue Line Taxi President Anthony Rizzuto told CBC News this does nothing but create an uneven playing ground.

"You can't open up a restaurant without a licence, so why can you compete with us without one?" he said. "It makes no sense."

"If they continue to go the way they're going we'll just have to take down our signs and compete with Uber head to head."

Uber is currently available in 58 countries.According to company's website, Canadian citiesincludeneighbouring Burlington, Ottawa, Montreal, Quebec City, London, Halifax, Edmonton, as well as Toronto.

adam.carter@cbc.ca | @AdamCarterCBC