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Ride-sharing company Uber started operating in Ottawa on Wednesday, defying the city’s warning that it’s only “welcome” here if it follows taxi regulations.

Hours after Uber started up in the capital, the city warned people not to take rides from unregulated drivers, and said its enforcement will go as far as undercover investigations and involve the police.

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But because Uber is offering free promotional rides until Sunday, Susan Jones, City of Ottawa’s general manager of emergency and protective services, said the city can’t crack down until money starts changing hands.

“As of Monday, if we become aware and have the evidence to suggest they are offering rides for a fee, and they haven’t complied with our licensing requirements, then we will undertake enforcement,” Jones said, adding that fines could be as much as $20,000.

In the city’s eyes, Uber must follow taxi rules, including having a broker’s licence, hiring licensed cab drivers, and using vehicles licensed as taxis. Jones said the company isn’t following those rules, which were explained to its executives at a meeting last month, and that the city wasn’t given a heads up this week that Uber was about to start operating here.