Defenders of Toronto’s taxi industry have “won round one” against Uber. But if that decision is allowed to stand the real losers will be the 17,000 riders in the city who use the app-based service each day. It’s now up to city council to preserve choice for residents by acting to regulate Uber instead of banning it.

Councillors on the licensing and standards committee did a gross disservice to the city on Wednesday by rejecting a sound compromise designed to boost the competitiveness of traditional cabs while imposing new rules on Uber.

Instead of acting in a responsible manner, a majority on the committee cherry-picked items from a staff report that had pointed a way to reform.

Councillors approved taxi-friendly measures such as trimming one dollar from a cab’s initial pick-up fee, lowering the cost to $3.25. But they balked at launching a process that would have allowed Uber to operate with city approval as long as it paid a licence fee, bought proper insurance, conducted criminal record checks of drivers and ran mandatory mechanical inspections. Uber officials, to their credit, have welcomed having a regulatory framework.

Leaders of the anti-Uber faction were grandstanding councillors Jim Karygiannis and Giorgio Mammoliti (who sported a black armband to mark what he called the death of the taxi industry). Their conduct won cheers from drivers and other taxi industry representatives, but at the cost of ditching compromise and fanning angry resistance in a crowd that would do better to recognize that the past century’s rules can no longer apply.

Launched in 2009, San Francisco-based Uber now operates in more than 330 cities worldwide offering a smartphone app that lets customers summon a ride by tapping on their mobile device. Particularly controversial is the company’s UberX service, which matches riders with drivers operating private, unmarked cars. Fares are generally lower than a standard taxi and payment is also made using the smartphone.

It’s convenient, easy, popular, and the way of the future. Mayor John Tory has called for new rules putting Uber under better municipal oversight, correctly noting that this sort of technology is here to stay. One can only hope a majority agrees when the issue goes to city council at the end of the month. The traditional taxi industry may have won the first round, but it’s important that all Toronto residents win the bout to come.

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