New rule threatens Uber fares with longer wait times and higher prices

Uber announced Monday that they’re going to start charging riders higher prices and creating wait times for car ride requests after the City of Toronto issued a ban on the ride-sharing company and delayed…

New rule threatens Uber fares with longer wait times and higher prices

Uber announced Monday that they’re going to start charging riders higher prices and creating wait times for car ride requests after the City of Toronto issued a ban on the ride-sharing company and delayed issuing new licences to Uber drivers.

The ban was imposed after several Uber drivers were involved in collisions while using the company’s smartphone app. The ban affected 75,000 residents of Toronto, with 80 per cent of the ride-sharing service’s Toronto passengers coming from nearby suburbs, according to Uber.

But Tuesday evening, Toronto’s mayor issued a statement saying that the city council would reopen the issue with a vote Thursday. Although Uber is now using technology to block users from the app, the company said that they are, “preparing for more disruptions, rising prices and longer wait times for everyone who relies on the service.”

Uber has 14 years of experience operating in cities across the world and Uber Canada General Manager, Josh Mohrer, offered this warning in a blog post Monday:

“We know that these are unsettling times for riders and drivers and we regret the disruptions these difficult changes will cause,” Mohrer said. “We’re making these changes in preparation for anything that is thrown our way by the city in the future, even the possibility of additional legislation or regulatory changes.”

While Uber has been working to manage the potential fallout from the ban and the new restrictions on service, the company has also been battling taxi drivers in San Francisco, and others across the country. Taxis in Toronto and San Francisco claim Uber drivers are not properly insured, there are not enough drivers available for passengers, the vehicle must be inspected and training is not thorough enough, while Uber argues that they offer just as many benefits as taxi services — in addition to being cheaper, since they don’t need to pay rent or maintenance costs.

And what makes Uber’s plight complicated is the fact that the Toronto-based Uber is not actually a Canadian company at all. It is, in fact, based in San Francisco. “U.S. taxes are due on any revenue resulting from the platform and Canadian residents are required to pay income tax in Canada on their Canadian incomes, including any earnings from the Uber platform,” Mohrer said.

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