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The Fate of Uber in Ontario

It appears that Uber is here to stay in Ontario, at least for now. Uber is an app-based transportation network that is heavily opposed by many taxi companies. Passengers can hail a car service at the touch of a button on an app in a smartphone. Many consumers love Uber because it’s a faster service, and they know exactly when the car service is coming to pick them up. Moreover, they know who the driver is.

Uber, a California company, launched in June 2010 and has been in Toronto since 2012. Many taxi drivers, companies and governments have objected to Uber because they believe it is an illegal taxicab operation that engages in unfair business practices and compromises the safety of the passengers.

The City of Toronto is seeking a permanent injunction against Uber and all of its operations, including its limo service known as UberBlack, UberSUV and UberX, where individuals can use their own cars to pick up passengers. The City of Toronto has insisted that Uber must abide by Toronto’s taxi regulations and get a brokerage licence.

Though Uber has always insisted that it is a technology company offering a smartphone app which links drivers to passengers, it has since formally applied for a taxi brokerage licence. However, the City is still going ahead with its court case in its attempt to shut down the company. Source: www.thestar.com (Uber court case to go ahead, city’s licensing chief says)

Toronto Mayor John Tory believes that Uber is not going away and has urged the parties to figure out a way to co-exist.

Earlier this month, the court heard arguments from the City and Uber. The fate of Uber now lies in the hands of an Ontario judge. However, even if the City of Toronto wins its case, it doesn’t necessarily mean Uber will cease to exist. Uber may appeal the case. While the case is being appealed, Uber will most likely continue to operate.

Does Uber Have Adequate Insurance Coverage?

One of the biggest concerns is inadequate insurance coverage for vehicles driven by UberX drivers. The City is worried about the safety of passengers, pedestrians and other motorists if a car driven by an UberX driver causes an accident.

From a safety standpoint, the biggest concern is whether Uber has adequate insurance coverage for its passengers in the event of an accident.

Toronto taxis are required to have commercial insurance that carries a minimum of $2 million in liability insurance. It is unclear whether UberX drivers are required to have commercial insurance.

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