Uber freezes new licence renewals for ride-hailing firms

Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences for ride-hailing companies. In an attempt to reassure customers in Toronto, Uber earlier this week agreed to freeze…

Uber freezes new licence renewals for ride-hailing firms

Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences for ride-hailing companies.

In an attempt to reassure customers in Toronto, Uber earlier this week agreed to freeze new licence renewals for ride-hailing firms.

According to reports, Uber has issued a statement telling riders that they might have an additional increase in fares or longer wait times. It also asked riders to stay calm and wait for what it calls clarification on the matter from the city.

Uber has been the target of scrutiny in Toronto after it was revealed the company’s operations contributed $2.7 million to city coffers last year. The company also received about $5.7 million in corporate contributions last year for its various ventures.

Uber told Daily Hive in an email:

“This is not a delay in new licence renewals,” said an Uber spokesperson Thursday. “This is a pause across the industry. We are suspending new licence renewals while we wait for more information.”

The City of Toronto (TTC) told Daily Hive that drivers are required to have a ride-hailing licence in order to operate. “This includes the Uber app, as well as the drivers licence,” they said, “but not the commercial licence required to operate in most other municipalities. The commercial licence can be obtained through a separate process.”

However, the company was able to renew its commercial licence for Uber X following its original license. Uber’s legal representative told Daily Hive that the company’s commercial licence is set to expire on Oct. 15, and Uber has received approval to renew it as early as the coming week.

“Uber is waiting for clarification from the city and is also keeping our customers updated,” explained the spokesperson.

Uber first announced the company would be freezing new licences in a press release last Friday.

In the press release, Uber noted that the company had been facing increasing competition from other ride-hailing firms such as Lyft, Motivate and GetMe, which have been introducing services to cities such as Toronto since 2015.

“While we want to make sure all our riders can

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