Unlicensed operators illegal, risk being fined

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This article was published 04/04/2018 (2495 days ago), so information in it may no longer be current.

Underinsured and unregulated drivers, some of whom haven’t had background checks, are operating sketchy cabs in Winnipeg, picking up and dropping off passengers in exchange for donations.

These unlicensed ride-hailing services are illegal, said Winnipeg Parking Authority analyst Colin Stewart.

If they’re not careful, many of these groups — which use Facebook, some with as many as 20,000 members — may soon find themselves being investigated by the parking authority.

“They’re illegal. It’s not complicated. If they’re dispatching rides for money, they’re operating outside of the bylaw. They need to be licensed and regulated. If we become aware of them, we’ll investigate and where appropriate, penalties will be issued,” Stewart said.

Those fines include $500 for any driver caught collecting fares and $1,000 for the administrators of the Facebook groups that link up drivers and passengers.

Many of these groups operated publicly before March 1 when the city’s vehicle-for-hire bylaw took effect. Before that happened, Stewart said the parking authority reached out to the groups it knew about, to let them know what steps they needed to take to operate legally.

A couple of the groups are in talks with the authority, but most chose a different tact. On March 1, Stewart said most of the groups, which had been visible to the public, changed their privacy settings to “closed,” effectively blocking content from non-members.

“There are checks and balances that need to be in place to make sure that anyone driving meets a minimum standard to consider them a safe operator.”

“Our goal is to ensure safe rides for both the public and drivers,” Stewart said.

“We can’t guarantee a driver doesn’t have a major driving offence or a criminal conviction that would cause concern for public safety. For example, you could hire an unlicensed electrician to do all the wiring in your house and you might be OK. But what if that wiring burns down your house?

“Our message to the public is: buyer beware. We encourage people to be aware of the situation they’re going into.”

On Wednesday, the Free Press took a closer look at some of these illegal ride-hailing services by joining a few of the Facebook groups and soliciting three rides.

From noon to 3:30 p.m., the reporter — who didn’t identify himself — caught three rides from the Exchange District to Polo Park, or the reverse, in addition to a Unicity Taxi trip along the same route to compare prices.

While the price of the unlicensed ride-hailing services (which operate on a suggested donation basis, or a price haggled between the rider and driver) was cheaper than using a cab, the wait times were hit or miss.

Drivers let potential riders know they’re open for business by posting on the Facebook group that they’ve started a shift. People can submit a post requesting a ride, making clear where they are, where they want to go and how much they’re willing to donate.

The suggested donation for the rides is $10 for a short to medium-length trip, or $15 to $20 for a longer one, according to one driver.

While some ride requests go unanswered due to a lack of drivers, if riders make their request a few hours or a day in advance, many of the groups can guarantee them a ride that’s cheaper than a cab.

The three drivers the reporter had were all friendly and chatted throughout the trips. All of them said they held regular jobs and worked as an unlicensed ride-hailing driver on the side.

One of the drivers was a woman on-shift as a courier when she picked up the reporter. The only issue of the day came when she appeared to be texting while driving multiple times during the trip. She also expressed concern about the news the parking authority is looking to crack down on the unlicensed services.

Stewart said no one has been fined for operating an unlicensed cab, but that could change if the agency shifts its focus from getting things up and running to enforcement.

If such groups want to avoid sanctions, they’ll either need to get properly licensed and insured, or qualify for an exemption. To do the latter, the groups would have to register as a non-profit, agree to provide rides whether or not a donation is given and start issuing receipts.

If that doesn’t happen, the agency said it will start investigating and issuing fines.

“We may, or may not be, currently undertaking investigations. We investigate these groups based on complaint. What we’re trying to point out is that when someone is regulated by us, they’ve met specific requirements. But with these groups we can’t guarantee that,” Stewart said.

“Our big focus is ensuring the safety of both operators working in the industry and customers using the industry.”

ryan.thorpe@freepress.mb.caTwitter: @rk_thorpe