Uber launches in Sudbury, raises rates overnight

Monday rates .80/km; Tuesday $1.10/km

As permitted by Ontario’s “pilot” rideshare project, Uber launched in Sudbury on Monday offering rides at 80 cents per kilometre.

However, 24 hours later, that rate had increased to $1.10 per kilometre. The overnight 38 per cent increase was not explained by any press release or communications Taxi News could locate.

“Frankly, given that the local Canadian company Uride charges $1.60 per kilometre, it’s hard to see how Uber was able to launch at 80 cents per click,” Aaron Group CEO Mike Sanders says. “Offering a service at less than it actually costs to deliver is predatory pricing, and that is illegal. However, it appears to be acceptable when Uber does it; they are allowed to buy the market.”

“Ridesharing is an important part of the transportation mix, especially in northern and rural communities where people need more options to get where they need to go safely and reliably,” Laura Miller, head of Public Policy and Communications for Uber Canada, said in a release.

Northern Taxi operators were not invited to partipate in Ontario’s development of rideshare regulations, and concerns over whether Uber will be able to field any drivers or any cars in the middle of winter or during the slowest times of the year will cannot be discussed until at least one winter has passed. However, MTO is proceeding with a “review” of its regulations on September 23rd. The consultation will therefore be informed by no winter experience.

“People just don’t seem to get that if we are forced out you can’t put the genie back in the bottle. Once we’re gone, we’re gone,” Bill Sibeon of Al’s Taxi in Huntsville says. “They seem to think that if the experiment of wide open ride share fails we’re going to be sitting on the side lines ready to jump back. in You can’t just rebuild what took 50 years to build.”