Uber launches lawsuit over 'bad faith' council vote, calls on court to overturn ridesharing cap
Uber Canada is taking the City of Toronto to court over a surprise council vote to freeze the number of ridesharing licences.
The company filed an injunction application with the Ontario Superior Court of Justice Monday, alleging that a cap on the number of private transportation company (PTC) licences in the city is illegal, and that “Uber will be irreparably harmed if [it] is not stayed.”
The 16-7 October council ruling emerged out of a discussion about transitioning the industry to zero-emission vehicles by 2030. Proponents, backed by Mayor Olivia Chow, argued that freezing the number of licences available to ridesharing companies like Uber and Lyft would reduce pollution and decrease congestion in the core—despite warnings from city legal staff.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
“We heard from the Chief Solicitor at the time,” Councillor Brad Bradford, who voted against the cap, said Monday, “that this of course opens us up to all sorts of [legal] risks.”
In court documents obtained by CTV News Toronto, Uber Canada alleges that the City failed to provide notice of the cap to the public, drivers, and other stakeholders contrary to its own procedural bylaws.
It also claims that limiting the number of available licences unlawfully discriminates between prospective and existing drivers. The documents allege council and the mayor acted in bad faith by concealing plans to introduce it and then disguising it as an amendment to a separate motion.
"Because the case is in front of the court at this point, I really cannot comment," Chow told CTV News Toronto Monday night. "It's really up to the city legal defense team to deal with this case in front of the court."
In a statement, the mayor's office said council's motion deals with greenhosue emissions, congestion and "makes life more affordable for rideshare drivers."
"The motion maintains the current number of licensed drivers for rideshare companies or taxis. There are currently 52,000 rideshare licenses in Toronto. Those who do not currently have a license can obtain one as existing drivers do not renew," the statement reads.
The motion does not not reduce the number of rideshare licenses but rather maintains the same number of licenses, Chow said.
Etobicoke resident Michael Johnson-Roach, who applied to drive for Uber in Toronto in October, was shocked to find out after he paid for and completed the city-mandated training course that he was locked out of getting his ridesharing licence.
“It's getting crazy living in the city,” Johnson-Roach, who had hoped to earn extra income driving for Uber, said Wednesday.
“The reality is [the cap] is impacting us more negatively than whatever positive effect they thought it might have,” he said.
“It's hit our pockets.”
Uber Canada’s legal application notes that prospective rideshare drivers are being denied the opportunity to earn income, and claims the cap will lead to longer wait times and degraded service for riders.
CTVNews.ca Top Stories
This type of screen time has the worst effect on kids: experts
According to some experts, there is one type of screen time that is continuously excessive, and it's having a severe effect on our children.
Grayson Murray, two-time PGA Tour winner, dead at 30
Two-time PGA Tour winner Grayson Murray died Saturday morning at age 30, one day after he withdrew from the Charles Schwab Cup Challenge at Colonial.
Family of toddler found dead at small-town Ont. daycare no closer to answers after year of investigation
A year has passed since two-year-old Vienna Irwin was found on the property of a home-based daycare in small-town Ontario, but her family says they are no closer to answers of what happened that day.
Fatal plane crash reported near Squamish, B.C.
The Transportation Safety Board of Canada has confirmed it is working with local Mounties and the BC Coroners Service after a plane crash near Squamish, B.C. Friday night.
Humboldt Broncos crash victims and families react to decision to deport truck driver
The family of one of the victims of the Humboldt Broncos bus crash in 2018 says they are 'thankful' for a decision by a Calgary immigration board to deport the driver of the truck involved.
'God forgives but we don’t': Loud outburst from stabbing victim’s family during sentencing hearing
An emotional outburst in a London, Ont. courtroom Friday disrupted the sentencing hearing of a woman who pleaded guilty for her part in the death of 29-year-old Mohammed Abdallah.
Three dead after vehicle plunged down a 100-foot embankment in Shediac, N.B.
Three people have died after a vehicle veered off the road in Shediac N.B., Friday morning.
Chiefs' Harrison Butker has no regrets about expressing his beliefs in speech
Kansas City Chiefs kicker Harrison Butker has no regrets about expressing his beliefs in a recent commencement speech and he said he has received support as well as “a shocking level of hate” from others.
Community mourns victims of fatal boat crash near Kingston, Ont.
The three people killed in last weekend's tragic collision between a speedboat and a fishing boat north of Kingston are being remembered Friday.