Vehicle for Hire Standards

Background
Municipalities are authorized to regulate taxicabs and other modes of private transportation services to achieve various public policy objectives. When regulating Taxi services and Vehicles For Hire, staff are seeking opportunities to increase access to transportation and ensure community safety through police records checks, vehicle safety certificates and drivers abstracts.

Transportation Network Companies (TNCs)
The recent entrance of Transportation Network Companies (Uber, Lyft etc.,) in many municipalities and the public’s liking of such services has compelled regulators to review their Vehicle-For-Hire (e.g. taxis, transportation network companies, designated drivers, and limousines) licensing systems to ensure the public’s interests are addressed. While all V.F.H.s provide similar services, there are several inherent differences that are unique to each industry.

Engagement with Industry Providers
Staff met with the following stakeholders to obtain comments on the proposed regulations:

• Taxi Industry
• Designated Driving Services Industry (D.D.s provide transportation services in the customer’s vehicle rather than in their support vehicle)
• Local Transportation Network Companies
• Limousines

A summary of Key Themes and Issues developed from these conversation is below. For a full list please see the attached Staff Report Vehicle For Hire Standards from April 3, 2024

Taxicab Industry – Key Themes/Issues:

If T.N.C.s are regulated, they should be regulated with identical standards.
Staff Recommendation/Response: The VFH by-law proposes to establish a new by-law with harmonized standards that are industry appropriate

There is a desire to prohibit unlicensed Taxi’s and T.N.C.s from operating in the Town of Cobourg.
Staff Recommendation/Response: With the increased compliment of staff, MLELS has been able to more effectively monitor complaints and investigate compliance related to reports of unlicensed taxi’s operating in Cobourg and in some instances resulted in fines. Enforcement efforts will continue and be enhanced with the VFH by[1]law.

Transportation Network Company Industry – Key Themes/Issues

There is interest to assess if a TNC Driver may also provide DD or Food Delivery Services in addition to T.N.C. services.
Staff Recommendation/Response: There is no restriction of a V.F.H. driver being limited to one service model. Accordingly, establishing one V.F.H. Driver’s Licence applicable to all services will enable all V.F.H. Industries to draw from a larger pool of licensed drivers.

Key Points The Proposed Vehicle For Hire By-law Establishes

• One consolidated V.F.H. Driver’s Licence for Taxicab Drivers, T.N.C. Drivers, Designated Drivers and Limousine Drivers.
• Streamlines Driver screening process – all V.F.H. drivers required to submit Police Record Check and Drivers Abstract on annual basis. (T.N.C. permitted to screen its Drivers and Vehicles based on Town’s standards; T.N.C. screening is subject to City audits)
• Brokers/Companies are responsible for driver training.
• All vehicles (except D.D.s) subject to annual mechanical safety checks and appropriate insurance requirements.
• The Town would no longer regulate tariffs/fares for the Industry and each V.F.H. Industry would be permitted to establish its own tariff/fare model.
• The T.N.C. is required to provide anonymized distance, fare, and time (start of trip and end of trip) data for each trip occurring within its municipal boundary. The anonymized data will be regularly reviewed and enable the Town to adjust its cost recovery model and to inform municipal planning purposes.
• Approach reduces the regulatory burden on V.F.H. Industry participants by only establishing standards that directly address the Town’s regulatory objectives of health and safety, consumer protection, and nuisance control.
• Proposes to establish a new V.F.H. By-law with harmonized standards that are industry appropriate.

Northumberland County Wide Licensing Collaboration
The Town of Cobourg has been working with other lower-tier municipal clerks in sharing the proposed regulations and provisions with the idea that they will adopt the VFH by-law to allow for consistency and collaboration in licensing of defined vehicles across the County of Northumberland. The goal of this initiative would be to make it easier for all Vehicle for Hire companies to get licensed and remove any repetitive administrative burden. There would therefore be one set of licensing requirements for multiple municipalities, eliminating the duplication of processes from one jurisdiction to another and help support more health and safety and consumer protection of all residents.

Community Engagement Objectives
Council has requested that staff seek feedback from the community regarding any additional concerns or consideration for the Draft Vehicle For Hire By-law.

• Using the Survey below, please provide your feedback by Thursday, April 18^th at 4:00 p.m.

Council Deliberation
The Vehicle For Hire By-law was discussed at the April 3, 2024 Community Protection and Economic Development Standing Committee. The By-law will come back to the Regular Council Meeting on April 24, 2024 where Council will provide their final direction.

Previous Community Engagement
Previous Community Engagement on the Taxicab Industry and Ridesharing/Vehicle For Hire regulations was completed in 2019. Due to COVID-19, this project was delayed, however, all previous community feedback as well as stakeholder engagement has been considered to inform the draft Vehicle For Hire By-law. The 2019 Public Engagement report is listed under the “Documents” section.

Request to Speak at Council
If a member of the public would like to speak to this item in front of Council, they are welcome to do so. To register as a Speaker, please email clerk@cobourg.ca