Uber 'highly unlikely' to come to Fort McMurray, company says

Though Wood Buffalo is now allowing rideshare services to operate in the region, Uber says red tape and high costs for drivers make it highly unlikely that the service will operate in Fort McMurray.

Regional Municipality of Wood Buffalo council recently passed a new bylaw that would allow rideshare services like Uber to operate in Fort McMurray.

But Uber spokesperson, Keerthana Rang, said in an email that although Uber was consulted when the municipality was making its bylaw, the company doesn't support the bylaw.

"Unfortunately, the bylaw has additional red tape, high costs for individual drivers, and privacy concerns," wrote Rang.

She said the decision to open in any region depends on market conditions and local regulations.

"Keeping those conditions in mind, it is highly unlikely that the platform will launch under the current bylaw," wrote Rang.

The bylaw requires mandatory cameras in each vehicle, but Uber thinks it's invasive to require that in personal vehicles and other Canadian cities don't require cameras for rideshare services, said Rang.

There are also two fees for drivers to get started, totalling $670, which could be a costly barrier for new drivers, said Rang.

The municipality also requires that Uber have a physical office. But Rang said Uber offers 24/7 virtual support and having an office in each municipality isn't realistic.

Coun. Funky Banjoko said Uber could partner with a local business to satisfy the office requirement.

"I don't see this as a big, big deal that would stop a big company like Uber," said Banjoko.

In general, Banjoko said the municipality wants to reduce red tape, but the rules in place are to ensure quality service that will protect the safety of drivers and residents.

Banjoko said she thinks having cameras in vehicles is important for safety and the fees the municipality is charging for new drivers are comparable to other large cities.

"I don't think we are outrageous," Banjoko said.

Banjoko said the requirements for taxi drivers and rideshare drivers are the same, because the municipality wants an even playing field.

Abdi Mursal, owner of YMM Rider, said he's relieved to hear that Uber isn't likely to come to the community, as he's starting a Fort McMurray rideshare app.

"That's really good news for us as a small company," said Mursal.

He said he agreed that bylaws add a lot of cost to new drivers, and said it can cost up to $3,000 with a vehicle-for-hire licence, camera installation, vehicle inspection and repairs.

The cost has been a roadblock hiring part-time or casual employees, said Mursal.

Terena Gunderson, a 20-year Fort McMurray resident, said she doesn't feel safe getting into cabs in town, and she was hoping Uber would start up in the community.

She said she likes knowing who the driver is and having a GPS tracker.

"I know where they're going, because I can watch it."

"I never use a cab anywhere," Gunderson said.

She added that she is in favour of having mandatory cameras for safety, but she wants to see the bylaw reworked so the rideshare companies will operate in the region.

"I just really hope Fort McMurray can get with the times, move forward and stop giving red tape to everything that wants to come into town," said Gunderson.