The Ottawa City Council has now voted in favor of regulating Uber. The city council voted 23 to 1 in a long standing 18-hour debate session.
The service of Uber will now be available for residents and drivers of Ottawa starting September 30, 2016. The company vows to continue its service and follow the new bylaws. Since 2014, the company has been seen operating in the city but was deemed illegal.
The new regulation for the legalization of Uber marks a new avenue to create revenues for the city. Under the new law, the city of Ottawa will create a new licensing category dedicated for the new private transportation company. All other future ride sharing companies will be under the new system and will be required to pay a licensing fee to the city. Registration for Uber, however, will cost $7,253 plus the city will also get 11 cents per ride commission as per Betakit.
As reported by CTV News Ottawa, the council agreed that all taxi and Uber drivers will have at least $2 million worth of liability insurance. Also, Uber drivers and other ride-sharing companies will not be required to have cameras in their vehicles which is contrary to the taxi industry.
The Council also took steps in modernizing the taxi drivers and brokerages. The council has decreased the licensing fee for taxi's to $96 from $170. Taxi passengers will not be required anymore to pay $1.50 fee while using their credit or debit card.
Most taxi drivers, however, were not happy with the new bylaw despite the city's steps in making the business more competitive. According to the Ottawa Sun, Mayor Jim Watson came under some serious scrutiny for his initial anti-Uber stance and about-face facilitating Uber's legal spot.
The legalization of the ride-sharing service has been a head start for Ottawa against Toronto. The latter has only started its hearing on recommendations regarding Uber's service. The City of Ottawa will review the bylaw in one year.
