Toronto to Limit Uber, Lyft Licences to Address ‘Climate Crisis,’ Congestion

An Uber sign in a vehicle is seen after the company launched service in Vancouver, on Jan. 24, 2020. The Canadian Press/Darryl Dyck

The Toronto City Council has voted in favour of a motion to temporarily limit the number of licences issued to ride-share services such as Uber and Lyft, saying it is part of the plan to curb greenhouse gas emissions and congestion, among other issues in the city.

Introduced by Councillor Mike Colle, the motion recommends that the city place a temporary restriction on the total number of vehicle-for-hire and private transportation licences, effective Oct. 12, for up to one year. During this period, no new licences will be granted to private transportation companies.

The issuance of licences will remain on hold until a staff report on industry regulation is finalized by the end of 2024. The motion was passed by a vote of 16–7.

“The overall arching intent of the motion before us ... is that we’re trying to deal with air quality, we’re trying to deal with the climate crisis, we’re trying to deal with the city’s attempt to manage congestion,” Mr. Colle said during a city council meeting on Oct. 11.

He noted there are currently about 53,000 vehicles-for-hire in the downtown Toronto area, which he said has resulted in intense competition within the industry.

“If you’re downtown at all, it seems there’s nothing but Uber drivers circling and circling and circling and circling. And then when you find out the average Uber driver makes $7.90 an hour, you realize why, because there are essentially all these drivers who are desperate for work,” Mr. Colle said.

Some council members who voiced opposition to the motion expressed concerns about potential market disruption.

On that point, Mr. Colle said, “I don’t believe that the market [is] really doing anything about our air quality problems.”

Brad Bradford, the city councillor for Ward 19, pointed out that the licence cap would impact many Canadians who turned to the ride-sharing industry as a source of income during financial hardships or as a supplementary job. He cited a similar measure adopted by New York City in 2018, which he said had resulted in an increase in ride-share prices.

Toronto Mayor Olivia Chow voiced support for Mr. Colle’s motion, saying  it would increase the income of app-based workers by reducing competition and mitigating vehicle pollution. She justified the motion’s rapid introduction, saying that a prior announcement of the cap might have triggered a surge in licence applications.

“We need to put a really good framework, a good system in place so that drivers can make a living, and that we will have a good system without contributing too much on congestion and greenhouse gas emissions,” she said.

The motion was introduced as city council pushes for a transition to electric vehicles within the ride-for-hire industry. On Oct. 11, the city council adopted recommendations from the Economic and Community Development Committee that aim to achieve net-zero emissions within the vehicle-for-hire industry by 2030.

Per the recommendations, any newly-granted or renewed driver licences after Dec. 31, 2029, will have to be registered as using a zero emissions vehicle. Additionally, starting from Jan. 1, 2031, all vehicle-for-hire units are required to be zero emissions vehicles, with limited exceptions. These exceptions may include permitting plug-in hybrid electric vehicles to continue operating as vehicles-for-hire until Dec. 31, 2032.