Lyft, Uber say Vancouver licensing fees could mean fewer vehicles on the road

VANCOUVER (NEWS 1130) — As Vancouver approves new $100 licensing fees for ride-hailing in city limits, Lyft is arguing that could mean fewer vehicles on the road.

The company argues that fee — along with the requirement that drivers have a Class 4 licence — could limit the number of cars that operate.

“As the $100 fee per vehicle was decided by the City of Vancouver instead of regionally, if other municipalities follow suit and adopt this same measure, the cost could be about $2,000 per vehicle and be prohibitive to businesses like Lyft,” the company says in a statement.

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With that cost, it says some drivers may opt to only buy licenses for some municipalities, meaning more customers would be refused rides.

“This would increase deadheading and ride refusals, and lead to higher congestion and emissions, which is against the City of Vancouver’s climate priorities,” reads the statement.

Deadheading refers to ride-hailing operators driving around with the car empty while waiting for passengers.

Uber says the fees will end up being paid by riders, and points to Toronto as a successful regional approach to business licensing as a positive for their business.

“It’s important to keep in mind that any fees imposed by municipalities will be paid by riders, reducing affordability of safe rides. Cities across the Greater Toronto Area have successfully created a regional approach to business licencing using per trip fees that could be replicated here in Metro Vancouver,” Vice President Matt MacInnis said in a statement.

Vancouver will also be charging a pick-up and drop-off tax for trips in Vancouver, at 30 cents each per trip.

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