No sign of Uber in St. John's, but city has eye on Edmonton model - Action News
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No sign of Uber in St. John's, but city has eye on Edmonton model

The city of St. John's says a decision by Edmonton to regulate Uber sets a model for other cities, but there's no sign yet that the company wants to set up shop in this market.

Cheap rides come with consequences, says local taxi owner

The owner of Newfound Cabs, Albert Newell, says there's no market for Uber in St. John's. (Bruce Tilley/CBC)

The city of St. John's says a decision by Edmonton to legalizethe ride request company Uber sets a model for other cities, but there's no sign of Uber coming to this market.

"What theyhavedone [in Edmonton]is bring in a strong piece of legislation that creates a level playing field and Iwould want to see the same thing here if we ever venture down that road," said St. John'sDeputy Mayor Ron Ellsworth.

"You can't have an unregulated system competing with a regulated system," said Ellsworth, who said issues like taxi licensing and insurance would have to be addressed.

"And I think what Edmonton has done is a good step forward, certainly a good model for anybody else in Canada to look at."

Deputy Mayor, Ron Ellsworth, said the Edmonton legislation could be a model for other cities when it comes to regulating Uber. (Bruce Tilley/CBC)

Edmonton is the first city in the country to legalizeUber, the company that has disrupted the taxi industry in hundreds ofcities around the world by allowing consumers to order rides with their smartphones. The company hires drivers who use their own cars.

The new rules in Edmonton take effect March 1, and lay out rules regarding driver insurance andminimum fares.

Ellsworth said he's not convinced St. John'sis big enough for Uber. He said the taxi business can be very slow as it is, especiallyduring the winter months.

"So I would hate to see it happen where our regular taxi industry has got to muckthrough 12 months of the year when somebody can run in and run Uber for six months when it's time to make money," he said.

"It can't be a cash grab by a third party and not provide a service level to our consumers."

Taxi owner not impressed

"The market's not really here forUber, no," saidAlbert Newell, the owner of Newfound Cabs. But "never say never," he said.

Newell wants to know who would regulate drivers if the company did come looking.

"Are they going to have police conducts, abstracts? Who'sgonnadrive what car?" he asked.

Uber hasn't made any inquiries about coming to St. John's, but "never say never" warns one taxi company. (Kai Pfaffenbach/Reuters)

"Are they going to have taxi plates,gonnahave taxi insurance? All that's regulated here in this city."

Newell said he keeps a log-in sheet, and that heknows where all his cars and drivers are at all times.

"I've been at this racket 40 years. I'm not going to just sit and letUbercome here and neither are the rest of the cab companies," said Newell.

"It's great for the underground economy," he said, but there could be consequences.

"How about an Uber car don't have no insurance, who's responsible?"