Uber, a company that uses smart phones to connect local drivers with strangers in need of a ride, is setting its sights on London
Uber representatives are looking to pitch the idea to council next month, but city officials are skeptical about the way the company does business
"I'm not sure they do partner with licensed drivers. We consider it electronic hitchhiking and we consider it a health and safety issue for the public," Chief Municipal Law Enforcement Officer Orest Katoylk tells BlackburnNews.com.
By downloading an app drivers can connect with other strangers in the city who are willing to pay for a ride, much like how current taxi companies operate
Uber does not operate its own vehicles or employ its own drivers. Driver safety and security is only based on an online rating from other riders
Katoylk says if approved, the company would have to operate under the regulations all London taxi companies do.
"My understanding in other municipalities is that they don't, and that is the reason that a number of municipalities are taking Uber to court for a variety of bylaw infractions and other injunctions. Other countries are banning Uber from operating," notes Katoylk. "Uber is acting as a broker, so they are dispatching vehicles. They would require a broker's licence, their vehicles would require to be licensed and their drivers would be required to be licensed "
Uber cites its way of doing business are more secure, since there is no cash transaction. Everything is done electronically through the app.
Aside from the concerns over licensing, Katoylk points out several other problems in regards to insurance. If a passenger is paying for a ride and is injured during a crash in a car that is not ensured as a commercial vehicle, there could be problems and lawsuits
Uber has admitted to surge pricing during busy times, such as a Friday or Saturday night. The prices for rides go up based on demand.
The company has already held information sessions for potential drivers in the city.
Officials have put forward a request for delegation to the Community and Protective Services Committee.
The fines for a driver operating an illegal taxi in London can total $2,100.
