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Local taxi companies have Uber worries

Prince George taxi operators are keeping an eye on how the provincial government tackles the introduction of ride-sharing services like Uber into B.C., saying a level playing field is in order.
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Taxis cue up at the Prince George Airport in January 2015.

Prince George taxi operators are keeping an eye on how the provincial government tackles the introduction of ride-sharing services like Uber into B.C., saying a level playing field is in order.

"If we have regulations, then they should have certain regulations too," said Prince George Taxi manager Sam Kuuluvainen.

"Either reduce our regulations or give them the same regulations."

Last month, B.C. Transportation Minister Todd Stone told reporters it's only a matter of time before such services settle into B.C. and operate side-by-side with taxi companies.

And Peter Fassbender, the provincial minister overseeing TransLink, began talking with stakeholders in late January about the introduction of ride-sharing services across municipalities.

Emerald Taxi owner Balraj Bhangoo said the B.C. Taxi Association is working hard on behalf of his industry but worries Uber may still win the day.

"It's up to the politicians and the way they go," Bhangoo said. "I know their [Uber's] lobby is way bigger than us."

For a brief period in 2012, Uber operated in Vancouver, allowing consumers to use its mobile app to order rides from private drivers.

It soon pulled out of the city once the B.C. government's Passenger Transportation Board determined the company was operating as a limo service and was required to fall in line with regulations covering that industry, such as charging a minimum of $75 per ride.

Both Prince George Taxi and Emerald Taxi offer a similar app but say only a small percentage of customers use it.

For Kuuluvainen, it's a sign the real attraction is price, not the method of hailing rides.

Both Kuuluvainen and Bhangoo said commercial insurance should be a must for drivers in either type of service.

"We have $12,000 insurance on our cars," Bhangoo said. "And they're operating on $1,200."

Kuuluvainen suggested there are times when Uber may not be as good a deal as people might think. He noted a customer in Edmonton was charged over $1,000 for a ride on New Year's Eve due to a tactic called "surge pricing" where the rates are jacked up when demand is high.

As for drivers, he said they need to take into account the fact that they pay for gas and the wear and tear on their vehicles and Uber takes 25 per cent of the revenue.

"It's like delivering pizzas," Kuuluvainen said. "You think hey it's great, but all of a sudden you're putting a whole bunch of miles on your car."

Prince George Taxi drivers pay a $750 per month dispatch fee, which Kuuluvainen said amounts to about 10 per cent of their take. Drivers employed directly by the company, as opposed to owner operators, get 45 per cent of the fare but face no expenses.

If Uber is allowed back into B.C., Kuuluvainen expects they'll concentrate on the larger markets - Vancouver, Victoria, Kelowna and Kamloops.

"Prince George would be an afterthought," Kuuluvainen said.

Bhangoo disagreed.

"If they can work in B.C., it doesn't matter if the market is bigger or smaller," Bhangoo said. "The way I'm thinking is somebody in Prince George will give it a try."

-- with files from Tyler Orton,

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