Illegal ride-hailing service customers will put pressure on taxi industry as companies apply for licenses: MLA

RICHMOND (NEWS 1130) – Uber and Lyft may be on the way, but ride-hailing is already happening on the Lower Mainland.

Although those services are operating outside the law, an opposition MLA says the introduction of legal services is going to affect the companies — and the people they transport.

“In my community of Richmond, we have many apps catering to the Asian community when it comes to ride-hailing,” Richmond-Queensborough MLA Jas Johal explains. “Last year, there was almost $10-million in revenue with illegal ride-hailing in the Lower Mainland. This year, it’s headed towards $20-million.”

He says the “market has gotten ahead of policymakers,” highlighting the urgent need for legal ride-hailing.

“What I’ve learned from these Asian ride-hailing companies is they have about 2,000 drivers who are signed up now under Class 5. Of those 2,000, about 500 are regular users or regular drivers — of those 500, I’m told about 200 now are taking the Class 4 licensing test.”

Johal points to this as a concern, saying the number of potential rides available will drop drastically.

“That’s how service is not going to be provided for many people on the Lower Mainland.”

He notes many of these companies want to start operating legally. However, Johal says the challenge come mid-September — when companies will be able to apply for licensing — will be that these companies will have to shut down for about six to eight weeks.

That’ll impact both those driving, and those who rely on these services.

“Which means there’s going to be greater stress on our taxi system, and these people are going to have to find other ways to find a ride to get around to school, to work, and other places as well,” he explains. “So the sooner ride-hailing arrives, the better.”

-With files from Martin MacMahon

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