Proposed regulations for the ground transportation industry include a new licencing class for companies that “facilitate transportation services for compensation using software,” such as Uber.

City staff released details on Thursday regarding new draft regulations. The proposal outlines relaxed rules for conventional taxi drivers and brokerages and more stringent restrictions on Uber.

The guidelines will designate services like Uber as “Private Transportation Companies” (PTC).

In order to be registered as such, companies would be required to pay a one-time fee of $20,000.

The regulations state that drivers must undergo criminal and driving history background checks, own or use a vehicle that is no more than seven model years old and inform their insurance company that their vehicle will be used to pick up fares for a PTC.

If passed, drivers who work for a PTC are not allowed to pick up passengers on the street or mark their vehicle with any “roof lights or markings” that could mistake their vehicle for a conventional taxi.

Both taxi drivers and Uber drivers will be required to have at least $2 million in liability insurance. 

The proposed changes will then be considered by the Licencing and Standards committee on April 14.

“There are currently more than 45,000 trips per day taken by the public in unregulated vehicles-for-hire,” Tracy Cook, the Director of Municipal Licensing and Standards, said in a staff report pertaining to the regulations.

“Appropriate regulation governing this industry is a critical public safety matter. The development of this new regulatory framework ensures that these vehicles-for-hire participants are regulated, as are taxicabs and limousines, balancing the city’s regulatory interests with existing industry practices. “

Last September, city council directed the head of the Municipal Licensing and Standards department to come up with new guidelines for Uber and similar services following outcry from the city’s taxi industry.

The drafted guidelines state it will also remove many of the rules that were previously in effect for taxi drivers.

Taxi drivers will no longer have to complete training programs to obtain and maintain a taxi licence, complete CPR and First Aid training or have a “command of the English language” to be licenced.

Furthermore, taxi's will be fitted with the same vehicle regulations as PTC’s, which would require the vehicle have four doors and be no more than seven years old. Taxi drivers would also see a 17 per cent decrease in licencing fees to $290 annually.

“We commend Tracey Cook and city staff for working diligently to find accommodation for all parties in the ground transportation market by proposing updates to existing regulations,” Susie Heath, a spokesperson for Uber Canada, said in a statement. “We will be reviewing the report more in depth and meeting with city staff to further understand how the proposed regulations may be implemented, and will have more to say in the coming days.”

Speaking to CP24 Wednesday, Mayor John Tory said the new regulations would help create a “level playing field” that would allow taxi drivers to remain competitive.

Tory maintained that the regulations will create a “balanced system” for all players in the ground transportation industry.

“The whole idea is to have a balanced system that offers people choice, that offers them the most advanced technology and that offers protection for public safety, whether you are in an Uber car, a taxi or a limo,” he said. “Our new regulations coming out Thursday are meant to address all of those things but still leave people choice and give them access to the latest technology.”

However, Coun. Jim Karygiannis, an outspoken Uber opponent who sits on the Licensing and Standards committee, said he has seen the report and is “not pleased.”

"When we commissioned the report back in July, it was supposed to be a level playing field- and this is not the case,” he said.

Some city hall representatives have similar sentiments.

"This is not the even and level playing field we were hoping for," said Sam Moini, a spokesperson with Toronto Taxi Alliance. "Just by looking at this, I don`t think there will be a taxi industry. Drivers won`t be able to make a decent living."

Moini added that if approved, the new guidelines would “deregulate the industry.”

“I think we are moving back in time instead of moving forward." he said. "All those reforms that were done were done to better the industry and better the service we provided. Now they are being washed away."

In response to the proposed changes, Coun. Karygiannis said on Thursday that it allows Uber to "get away with murder."

"No licensing, no marking, no plates, nothing. We have absolutely no oversight," he said.