Drivers hoping to work for ride-hailing companies such as Uber and Lyft will require a Class 4 commercial licence

Welcome to B.C., Uber and Lyft.

The ride-hailing companies could be operating on B.C. roads as early as Sept. 16, as the provincial government announced Monday its regulations on licensing and insurance for ride-hailing will be in effect as of that date.

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However, ride-hailing companies would first need to apply for permission to operate through the Passenger Transportation Board. Applications will be accepted beginning Sept. 3.

The PTB, an independent board, is also responsible for setting guidelines around supply, boundaries and fares.

“Our plan has made it possible for ride-hailing companies to apply to enter the market this fall, with vehicles on the road later this year, while ensuring the safety of passengers and promoting accessibility options in the industry,” said Transportation Minister Claire Trevena in a statement.

“British Columbians have been asking and waiting for these services after more than five years of delay by the former government. We took action to allow for the services people want and we’re delivering on that promise.”

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The Passenger Transportation Act regulations will require criminal-record checks and annual driver-record checks for any driver working with a ride-hailing company, and will introduce a new 30-cent per-trip fee and a $5,000 annual licence fee for the company.

The Motor Vehicle Act regulations will change how frequently cars must undergo inspections, will remove seat-belt exceptions for all for-hire vehicles, and will introduce side-entry accessible taxis.

Drivers working for ride-hailing companies are still required to hold a Class 4 commercial licence, a requirement supported by B.C.’s police chiefs association, but that was not recommended by a legislative committee tasked with making recommendations for ride-hailing.

A majority of the committee proposed that ride-hail drivers should be allowed to work with the more common Class 5 licence rather than a Class 4, which is a commercial licence held by taxi and limo drivers, but B.C.’s NDP government is insisting on the Class 4 requirement.

“The requirement is not negotiable for to us; safety is of utmost responsibility. And we believe that it is our responsibility as the government to ensure that any public consumer service like this is held to a standard that they can rely on and trust in,” Bowinn Ma, MLA for North Vancouver-Lonsdale, said during a media call Monday.

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Alberta, which has Uber, requires ride-hailing drivers hold a Class 1, 2 or 4 licence, all of which are for professional drivers. Most other provinces do not require a commercial licence.

Aaron Zifkin, the managing director of Lyft Canada, said his company, which has cars in Toronto and Ottawa along with most of the U.S., does not currently operate in any jurisdiction that requires drivers to have a commercial driver’s licence.

Commercial licences for ride-hailing drivers will not improve safety but will increase waiting times and benefit the taxi industry, because the requirement will limit the driver supply.

“Ninety-one per cent of the drivers on our platform drive less than 20 hours a week. These are people like single moms, students in school and people trying to supplement their incomes,” he said. “As soon as you introduce that Class 4 commercial licence, these people tend not to apply for that type of work.”

When asked if the commercial licence was a deal-breaker for Lyft, Zifkin said he was cautiously optimistic that solutions could be found working with the PTB this summer.

The Surrey Board of Trade, although pleased that ride-hailing has finally received the green light in B.C., is also disappointed with the Class 4 licence requirement.

“This needs to be revisited by government to enable full market participation in the ride-hailing industry,” said Anita Huberman, CEO of the Surrey Board of Trade.

The B.C. Taxi Association, meanwhile, said the Class 4 requirement shows the NDP government cares about public safety.

“I believe the government has taken the time to make sure they do not repeat the same mistakes that were made in other parts of Canada and the world,” said association president Mohan Singh Kang. “We have never said no to Uber or ride-sharing … but we’ve always stated that they must meet the safety standards and there also has to be an even playing field, because they are doing the same type of job. The taxi industry will not be able to compete with them unless the rules and ground rules are identical.”

Ian Tostenson of Ridesharing Now for B.C., a coalition sponsored by Uber and Lyft, said he doesn’t expect the Class 4 requirement will kill ride-hailing, but it will slow its rollout.

“What I’m worried about is if (ICBC) is staffed up, geared up and trained up to handle the onslaught of people (applying for Class 4),” he said. “I hope they’ve anticipated this because you can imagine all the road tests that would happen for Class 4, and you have to have qualified (ICBC driver) examiners — and where are you going to get those guys?”

An ICBC spokesperson said ICBC is prepared to increase the number of available Class 4 road test appointments to support additional demand.

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ICBC will also introduce a new insurance policy for drivers and vehicles operating with ride-hailing companies, effective this September. The policy is a blanket, per-kilometre insurance product that provides third-party liability and accident coverage.

Drivers working with ride-hailing companies would be required to have their own basic vehicle insurance policy when they are not working.

It will also be left to the PTB to decide how many ride-hailing vehicles will be allowed to operate, what boundaries if any are applicable and what rates would be charged.

“It was decided many months ago by the all-party committee to not have boundaries, to not put a limit on drivers and let the market determine pricing,” Tostenson said.

“We believe the tone coming from the Passenger Transportation Board is one of flexibility, so we don’t expect anything to be concerned about when the rules eventually do come out.”

Uber has yet to respond to the news officially, though a spokesman said the company was reviewing the details announced Monday before discussing publicly how it might impact the company’s entry into B.C.

ABOUT CLASS 4 LICENCES

What’s a Class 4 licence?

There are two types of Class 4 licence: unrestricted and restricted.

An unrestricted Class 4 allows you to drive buses with a maximum capacity of 25 people, taxis, limousines, ambulances and any normal vehicle under a Class 5.

A restricted Class 4 allows you to drive taxis, limousines, ambulances and special vehicles carrying not more than 10 people designed for wheelchair-accessible transport.

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Am I eligible for a Class 4 licence?

You must be 19 years of age, hold a full-privilege Class 5 B.C. driver’s licence or equivalent, have two years of non-learner driving experience, and fewer than four offences and no motor vehicle-related Criminal Code convictions on your driving record.

You’ll also need to have any outstanding ICBC fines paid off and be in good health. Some medical conditions — such as epilepsy, neurological conditions, heart conditions, sleep disorders and more — may restrict you from getting a commercial licence.

What are the steps to getting a Class 4 licence?

Just like a regular licence, you’ll need to be in good health and take a knowledge and road signs test to get your learner’s licence. Study up and bring the necessary identifying documents with you to an ICBC licensing office to take your written test.

Your Class 4 learner’s licence is good for one year and can be renewed by taking and passing the knowledge test again.

To get your full-privilege Class 4 licence, you’ll need to pass a commercial road test, which includes a pre-trip inspection test, a road test and a medical exam.