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This article was published 21/12/2016 (1372 days ago), so information in it may no longer be current.

Citing long wait times, an under-supplied market and dissatisfied customers, an independent review of Winnipeg’s taxicab industry recommends ride-sharing services such as Uber be allowed into the market.

The 168-page report prepared by MNP LLP, which was commissioned by the Manitoba Taxicab Board, has 40 recommendations, including adding 150 standard taxicab licences to the current 410 licences and improving customers’ perception of safety.

"There are a number of indications that the current system has limited consumer choice to the extent that it has negatively impacted service, satisfaction, driver working conditions and artificially high values on the secondary market that limits new owner participation," the report says.

The report clears a significant hurdle for the app-based ride-hailing service; the province has said it would not make any decisions until the review was done. On Wednesday, provincial officials said they are considering the report.

The conclusions delighted Uber officials, who had been coy about their plans for Winnipeg. The Silicon Valley, Calif.-based, privately owned company operates in about 320 cities in more than 60 countries.

"The report confirms that the vast majority of Manitobans want ride-sharing, and we look forward to bringing Uber to the province soon so that Manitobans can benefit from another safe, reliable way to get around their communities and (have a) flexible income-earning opportunity," Uber Canada spokeswoman Susie Heath wrote in a prepared statement.

Uber operates via a smartphone app; users request a ride after typing in their location and destination and are linked to a nearby driver. The driver, who holds a commercial driver’s licence, uses a personal vehicle. All transactions are connected to the app account with a credit card — no money is exchanged in the vehicle. Insurance options vary by province, but Alberta and Ontario recently approved specific ride-sharing coverage.

The seven-member taxicab board — five provincial government appointees, a city council member and the police chief — regulates Winnipeg’s taxi industry.

"The taxicab board is pleased with the in-depth analysis and broad-based consultation process that MNP undertook to produce this comprehensive report," board chairman Randy Williams wrote in a statement.

"The taxicab board will begin a thorough review of the 40 recommendations and will provide opportunities for public and industry stakeholders to provide feedback."

The report recommends Uber drivers be required to have similar insurance to taxi drivers here and that Manitoba Public Insurance develop a "group insurance" category for ride services.

MPI officials said they are not ready to comment on the review at this stage and are awaiting government direction before they develop new categories.

The legislative requirements to make room for ride-sharing services are murky. All three provinces in which Uber operates (Ontario, Alberta, Quebec) have private auto insurance, unlike Manitoba’s public system. Officials with the province told the Free Press what happens next will depend on what the province decides to do.

Winnipeg is unique because the taxicab industry is regulated by a provincial body. The industry is regulated independently in other cities. Other cities were able to bring in Uber through bylaw changes and adding new rules and regulations to allow it to operate legally. Currently, Uber operates in Calgary, Edmonton, Montreal and several Ontario cities, including Toronto, Hamilton and London.

In Toronto, it created a "private transportation company" licence in May. It licensed Uber as a private transportation company in August, a first in the country.

In Manitoba, bringing in a ride-sharing service could require legislative changes to the Taxicab Act and the Manitoba Public Insurance Corporation Act.

The review makes note of the negative effect of allowing Uber into the market: drivers/vehicles may not be required to meet the same standards as taxis; customers are subject to "surge pricing" at peak periods; and that many drivers "cherry pick" by working only during peak times and high-call areas.

In contrast, taxis are required to respond to all calls and be available 24 hours a day.

The report touches on the expected impact on the livelihoods of standard taxicab business licence owners, who will likely see a decline in their value. In Toronto, a pre-Uber taxi licence was worth about $360,000 in 2012 and was estimated to be worth $100,000 in 2014.

The review states that at one cab for every 1,252 people in the busy winter period, Winnipeg has significantly fewer taxis than all other cities of comparable size — Calgary, Edmonton, Vancouver, Hamilton and Ottawa — which average one for every 860 people.

It notes, however, Winnipeg has the lowest standard taxi fares of those cities.

MNP was retained last January when the NDP was in power to report on issues such as supply and demand; fare structure and charges; safety, security and accessibility; new technologies and services; and licensing requirements, standards, training and procedures.

New Democrat MLA Andrew Swan said the review was launched because people complained about getting cabs in a timely manner and had concerns about safety.

"I think it is fair to say that when the report was commissioned, everybody agreed that the status quo was not working in the interest of Winnipeggers," he said. "In other markets there has been some different kinds of regulations that are put on, every municipality has dealt with it differently... I think everyone is going to have to do their own investigation on it."

Uber recently ramped up efforts in Manitoba, adding a senior officer to the provincial lobbyists registry in October, with the objective of influencing "regulatory changes with respect to for-hire transportation." Another Uber lobbyist has been registered since May.

The Taxicab Act and current regulations would not prevent Uber itself from operating as a dispatch service. However, the law would require Uber drivers in Winnipeg to have both a taxicab driver’s licence and a taxicab business licence, and that doesn’t fit with Uber’s business model.

The Winnipeg Chamber of Commerce has long advocated for Uber’s entry into Winnipeg, arguing it would increase competition and give consumers more options.

"Today’s report would definitely remove one obstacle to Uber’s entry into the market...We have an independent review that says the time has come to allow to this," said chamber president Loren Remillard.

"The next question is, how do we move forward?"

kristin.annable@freepress.mb.ca

Twitter: @kristinannable