Toronto may impose cap on number of Uber, Lyft drivers in the city

Toronto could soon introduce a cap on the number of licences issued to drivers who work for ride-hailing services, including Uber and Lyft.

In a report released Tuesday, city staff recommended that council amend the current vehicle-for-hire bylaw to cap the number of private transportation company (PTC) licences, including those issued to Uber and Lyft drivers, at 80,429, the number of approved licences as of Dec. 1, 2024.

The cap, which aims to “limit further growth in the number of licensed PTC drivers,” may be exceeded for those who operate zero emission and wheelchair accessible vehicles, the report added.

Those who are exempt from the cap would not be allowed to register or operate any “non-exempted vehicles,” according to the report.

“The objective of the cap is to mitigate the risk of worsening traffic congestion, increased emissions and impact to public transit use by ceasing further growth in the number of PTC drivers, while balancing considerations for driver equity and user mobility,” the report read.

The cap would operates on a “one-in, one-out system,” the report notes, so that as one driver leaves the industry, a new one may join, keeping the number of licences “static.”

The report found that each day, PTC vehicles averaged more than 200,00 trips starting or ending in Toronto, up eight per cent from February 2020.

City staff also found that in Sept. 2024, about 33 per cent of the distance PTC vehicles travelled across the city was spent “cruising for a passenger,” up from 15 per cent in May 2022 but down from 39 per cent in February 2022.

“This means that for every 100 vehicles on the road downtown, 14 are PTCs, with 4 of these driving empty,” the staff report added.

“The increase in empty kilometres since May 2022 is driven by the number of active vehicles growing faster than trips, resulting in each active vehicle making fewer trips per day on average.”

The report found that while PTC vehicles account for only 4.5 per cent of total traffic citywide, those vehicles represent about 14.2 per cent of all traffic within the downtown core, where traffic congestion is a significant concern.

The city previously tried to implement a cap on licences for ride-hailing drivers last year but resumed issuing licences last December in the wake of a legal battle with Uber Canada.

In the recent report, staff said they considered actually reducing the number of licences through a “licensing pause,” but ultimately decided against it.

“While there is a high level of PTC activity in the downtown core, PTC users travel in all parts of the city and for various reasons, including commuting, discretionary and essential travel, and to connect to transit,” the report added.

“A limit to licensing that reduces the number of drivers and vehicles may have an impact on the mobility of users in parts of the city, especially in locations where there is a lack of higher order transit. Through consultations, many users raised concerns related to rising fares and longer wait times that could arise with the potential of a licensing limit.”

If the cap is approved by city council, it would come into force “immediately,” the report added.

The proposed bylaw amendments are on the agenda at the Dec. 10 executive committee meeting and if given the green light, the recommendation would be up for final approval at the next city council meeting on Dec. 17.