The Passenger Transportation Board has granted the first ride-hailing licence for northern B.C.

Richmond’s Kabu-Ride Inc. was approved Feb. 7 to operate in all regions of B.C., while the Board also approved Apt Rides to operate in the Lower Mainland and Whistler.

article continues below

"Next steps for the approved applicants after receiving licences from the Registrar are to secure appropriate motor vehicle insurance and to work with municipalities in their operating areas to ensure compliance with local by-laws," the Board wrote in its decision.

Kabu officials could not be immediately reached Friday afternoon.

The Board's decision notes that Kabu's launch in the northern region — which includes the Peace region and Northern Rockies, along with Fraser-Fort George, Bulkey Nechako, Kitimat-Stikine, and the North Coast — "could happen in 2021 or sooner, with an initial fleet size of 25 vehicles."

The company's rollout "will depend on its ability to recruit a critical mass of Class 4 drivers to serve the region," the Board wrote.

Minimum rates will be set on a case by case basis, and are based on the taxi flag rates in a specific area, according to the Board. Kabu will charge minimum rates between $3.35 to $3.50 in the south.

Kabu expects 40 vehicles to serve the Kelowna and Kamloops areas by the end of this year.

Kabu’s parent company, Gokabu Group Holdings Inc., had been offering rides in the grey market for three years until last September, when it suspended operations to abide by new provincial regulations and apply for a ride-hailing licence.

The company had been targeting the non-English-speaking market, specifically Mandarin and Cantonese.

“The question of whether Kabu is a fit and proper person to provide the proposed services is not straightforward,” the Board wrote in its decision, noting its parent company’s history in the grey market.

“While the Board does not condone the operation of a commercial passenger transportation business in contravention of regulatory requirements, a past violation does not in and of itself operate as a barrier to granting Kabu’s application. Given the particular and unique circumstances of this case, and the fact that Kabu is a separate legal entity from GoKabu, the Board is satisfied that Kabu is currently a ‘fit and proper person.’”

The provincial regulator also noted in its approval that Kabu plans to offer services in Victoria and Nanaimo by the end of 2020.

Meanwhile, CEO Austin Zhang told Business in Vancouver last fall his company charges drivers “very low” commission rates and offers medical benefits.

He said the number of driver applicants was in the hundreds and expects drivers would make $25 an hour on average driving for Kabu Ride.

“As more new drivers join us, we plan to add French, Filipino, Punjabi, Hindi, Korean, Japanese, Spanish [-speaking drivers],” Zhang said at the time.

— with files from Business in Vancouver

Email Managing Editor Matt Preprost at editor@ahnfsj.ca.