Patching Ride-Sharing Bylaws in Calgary

Real-time ridesharing is a service that arranges shared rides on short notice.  In recent years, this type of carpooling has become viable due to three recent technological advances:

• GPS navigation devices to determine a driver’s route and arrange the shared ride
• Smartphones for traveler to request a ride wherever they happen to be
• Social networks to establish trust and accountability between drivers and passengers

Services, like Uber, have now been approved for use in Ottawa, Edmonton and potentially soon in Toronto.

When Uber was piloted in Calgary 60,000 members signed up and 2,000 drivers enrolled.

Calgary approved bylaws to allow ridesharing services. However, Uber has stated that it is unable to operate under current bylaws.  The only councillor that voted against the proposed bylaws in a 14-1 vote was Councillor Evan Woolley.

A recent poll by Leger showed 86% of Calgarians agree that ridesharing can help bring affordable and reliable transportation options to their city.

I recently met with an Uber representative to discuss the business model and why ride-sharing bylaws are not feasible in Calgary.

First off, the business model of Uber is different from taxis in that the vast majority of ride-sharing drivers drive less than 10 hours a week.  The other aspect that differentiates itself from taxis is demand-based pricing.  This allows surge pricing to occur during peak demand periods, like after a hockey game, such that there is sufficient supply of ridesharing drivers to meet demand.

Calgary’s regulations were pointed out as being unworkable primarily due to the following 3 reasons:

• Annual fee structure of $200/driver is prohibitive for part time drivers.  Instead, both Edmonton and Ottawa have a variable component whereas a portion of money is collected on a per trip basis. Uber’s representative stressed that they objected to how, not the amount collected.
• The vehicle inspection that is requested by City of Calgary is onerous and costs twice as what is performed for used car vehicle inspections.
• Current bylaws require a Calgary Police background check which takes 3 weeks versus a 2 day background check done by 3rd party. This timeframe makes it more difficult for drivers to enter the market in advance of events like Stampede or the Global Petroleum Show.

Earlier this week, Lyft has also announced that Calgary’s ride-sharing rules are not conducive to service.

Due to regulations that are not fit-for-purpose, Calgarians risk losing out on a service choice that may help reduce drunk driving and congestion.