Mississauga could be the first city in the GTA to fully regulate Uber and other ride-hailing companies next week.

A staff report to be debated at a council meeting March 2 recommends an “equal regulation” option that would legalize cheaper but unlicensed services like UberX while allowing the traditional taxi industry to compete.

After Calgary approved new rules that Uber rejected last week, a similar move from Mississauga is likely to be closely watched at Toronto city hall, where staff are in the midst of drafting their own regulations.

“I have always maintained that we have to strike a balance between new technologies and an established industry that has a long history of providing quality service,” Mayor Bonnie Crombie said in a statement to the Star.

“It is important that we create a level playing field that allows for growth and progress within the industry, while protecting public safety.”

But the newly proposed rules are being criticized by both the industry and Uber.

In a move modeled after Calgary’s regulations, Mississauga city staff have recommended creating a separate category of licence that would require Uber drivers to get the same police background check and training as traditional drivers and provide proof of English literacy as well as obtaining “equivalent” insurance. Drivers would also be required to provide proof of vehicle inspection every six months.

While the city would not regulate fares for rides hailed through mobile apps like Uber’s, staff recommended that traditional cab companies also be allowed to set any price through their apps — what would allow them to compete with Uber’s surge pricing, which charges more when there is higher-than-normal user demand.

Rides dispatched through a traditional taxi broker or hailed from the street will still use metered fares set by the cities. Limousine companies would be allowed to set their own rates by eliminating the current minimum fare set by the city.

While a cap on the number of licensed cabs will remain, Uber and other companies will not be restricted in the number of vehicles they can operate, having already flooded many traditional markets in the GTA and across Canada.

That is likely to be a major sticking point for the taxi industry, with the number of licensed cabs currently set by the city based on passenger demand.

“We have enough taxis in Mississauga and any more is just going to dilute the mix and lower the drivers’ income,” said Mark Sexsmith, sales manager at All Star Taxi in Missisauga.

He said the industry prefers another option presented by the city that limits changes to current regulations and would keep services like UberX illegal under city bylaws.

To date, Mississauga has laid more than 200 charges against Uber and its drivers.

Peel Taxi Alliance spokesperson Marcel Wieder said cab drivers want to work with the city and will be meeting over the weekend to present a united position.

“We recognize that there’s issues that need to be resolved,” he said.

Uber Canada spokesperson Susie Heath said they want to work through the details of the report now before Mississauga’s council.

“While we believe that many aspects proposed in the staff report support the ridesharing model, there are some serious flaws that place unnecessary barriers on drivers’ ability to earn on the platform and riders' access to reliable transportation,” she said in an email.

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Uber earlier backed changes in Edmonton that allow for the company’s existing vehicle inspection and more lenient background checks, without imposing additional fees the company says would be “onerous” on part-time UberX drivers.

Neighbouring Brampton is now also considering new regulations to incorporate companies such as Uber after their city council requested on Wednesday that Uber suspend its UberX service.

Draft regulations in Toronto are expected to be revealed in April and head to council in May.

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