Uber is not alone in hoping to change how Vancouverites are permitted to get around the city.
A new company called Ripe is pitching a proposal this week before the Passenger Transportation Board seeking 20 licences for mid-level luxury sedans passengers would be able to summon via smartphone and pay for their rides online.
But first they will have to overcome resistance from an industry that has a stranglehold on the market.
It’s the second time that Ripe has gone through the two-year application process, and president Otis Perrick said taxi and limousine companies have once again been vocal in trying to have it tossed out by the board, an independent tribunal established by the provincial government.
“I think where the problem lies, the parties that are objecting to us, the Vancouver Taxi Association, Vancouver Yellow Cabs, the suburban cabs, they are all concerned about what they would say is their turf and cars coming into their area,” said Perrick. “Why do we have so much opposition when we are offering a brand-new service in a mid-tier price level? People are looking for a cashless, easy to use car service and they are willing to pay a little bit more for a luxury service. We’re not taking the place of taxis and we’re not competing with limos.”
Perrick, a 39-year-old entrepreneur who first made his name in the gaming industry by providing customized personal avatars used in Xbox and PlayStation games, argues Ripe wouldn’t pose a threat to either the taxi or limousine companies because it would offer a different kind of service. He described the opposition to allowing a new business model to operate as a form of bullying.
“Just as Uber tried to bully their way in by not being regulated first, I am going to compare the [taxi and limousine companies] as being bullies themselves for not wanting competition. They are nervous, they are upset and they don’t want the new kid… Vancouver is one of the most under-serviced cities in North America when it comes to availability of customer options when it comes to reliable hired car service.”
A recent study by Benn Proctor, an SFU public policy expert, found that Vancouver taxi fares are 15 per cent higher than in other major Canadian cities and that the city is underserviced with 40 per cent fewer cabs.
While other transportation companies oppose the idea of proving alternative options, Ripe’s application has received written endorsements from several other local businesses, including the Donnelly Group, Electronic Arts, Ledcor Construction and the Trades Labour Group. Last month Canada’s Competition Bureau also gave their thumbs-up to the idea of allowing regulated digitally based transportation companies, posting on their website that “these innovative business models have the potential to offer important benefits to consumers through more competition, including lower prices, greater convenience and better service quality for a variety of reasons.”
Perrick said there is room on the roads for everyone.
“When you want to select a car, you’re going to know how far away it is and how long it is going to take to get there. It’s not like phoning the abyss to get a car and you’re told it will take 10 minutes and it shows up an hour later. If you know it is 20 minutes away, you can either accept that ride or you can look for alternatives.”
The board will hear closing arguments December 11 and is expected to release a decision by the end of January.
