Changes to Calgary's limousine bylaw that would smooth the road for ride-hailing apps like Uber Black to operate in the city were given a preliminary nod by a city committee Wednesday and will go to council for a full vote next month.

Uber, however, doesn't think the proposal goes far enough.

The proposed amendments would lower, or remove, existing hurdles that stand in the way of limousines or luxury cars being used an on-demand transportation option in Calgary.

An Allied Limousine at the Calgary International Airport. (Bryan Labby/CBC)

Uber Black is the luxury version of Uber's app-based ride-hailing service. In some jurisdictions, it also offers UberX, a service that sees ordinary people driving their everyday cars effectively work as on-demand taxi drivers, but that is not being considered for Calgary for the time being.

Currently, limo rides must be booked at least 30 minutes ahead of time and the minimum fare is $84.60.

City staff recommend eliminating the pre-booking requirement and knocking the minimum fee down to $25, while also introducing a distance-based fare system to replace the existing hourly rate for limos.

The fare would be based on a fee of $2.10 per kilometre, as determined by a GPS-enabled and city-approved app on limo customers' phones, rather than a traditional taxi-meter-type system.

This table outlines the difference between existing hourly limo rates and the proposed new rates, which would be based on distance. (City of Calgary report)

Taxi driver concerns

John Bliss, a retired taxi driver, told committee members the new limo fees are too low and would overlap the taxi market too much, threatening cab drivers' livelihoods.

Unlike taxis, there is no cap on the number of limos that can operate in Calgary.

Bliss suggested a minimum fare closer to $45 and a distance fee of $2.70 per kilometre to better differentiate limousines as a premium service.

Current taxi rates in Calgary include a $3.80 initial charge plus a distance fee of $1.67 per kilometre.

This table compares the price of a taxi ride and the price of a limo ride under the proposed new fee structure for limousines. (City of Calgary report)

Limo company supports changes

Roger Richard, president of Associated Cab and Allied Limousine, which already operates an app named "Allied Black" that can be used to order both cabs and limos under the city's existing bylaws, supported the proposed changes.

Roger Richard, the president of Calgary's Associated Cabs, thinks Uber should follow the same rules imposed on any taxi company in the city. 1:11

"Let's give the consumer a choice," Richard told committee members. "Let's stop protecting (the taxi industry)."

Richard said he recognizes the past year, with the city's release of 126 more taxi plates and the economic downturn eating into individual driver earnings, has been a tough one for many cab driver, but said that's only a temporary situation.

"This year, there's no doubt, business is down," he said. "But it's going to go back up."

In the previous five years, Richard noted demand for taxi service routinely overwhelmed the available supply and said the limousine bylaw changes would help improve overall service during peak hours.

Uber weighs in

Ramit Kar, Uber's general manager for Alberta, said the city's plan doesn't go far enough and the minimum fee for a limousine shouldn't just be reduced, it should be scrapped.

"As the city's own third-party research clearly showed, 74 per cent of Calgarians want to see the minimum fare completely removed," Kar said in an email.

"Calgarians understand that fare regulation is unnecessary when customers are empowered and informed," he added.

"The protectionist recommendations headed to city council do not put Calgarians first, and will not allow technology companies like Uber to bring premium services, including Uber Black, to Calgary."

Contentious vote

City councillors on the transportation committee were divided on the proposal, voting 4-3 in favour of the recommended changes, but that's far from the final word.

The matter will now go to city council on Oct. 5 for a full vote.

At the committee meeting Wednesday, Couns. Gian-Carlo Carra, Richard Pootmans, Evan Woolley and Diane Colley-Urquhart voted in favour of the bylaw changes.

Couns. Sean Chu, Joe Magliocca and Jim Stevenson were opposed.

Uber in Calgary ? City committee debate over admitting Uber limo. A dozen of taxi drivers in attendance <a href="https://twitter.com/hashtag/cbc?src=hash">#cbc</a> <a href="https://t.co/agzF9U23rh">https://t.co/agzF9U23rh</a> —@evelyneasselin

Simultaneous Uber debate in Toronto

The discussion in Calgary came as Toronto city council grappled with how to regulate Uber in its city.

Toronto Mayor John Tory has said the city must acknowledge that Uber and services like it aren't going away but that they can't continue to operate in a "Wild West" environment outside city rules.