Monday, November 30, 2015

Canadian Competition Bureau Recommends Uber Business Model To Canadian Taxi Industry

The offerings of Uber's business model has made the regulator recommend it to the industry.
The Canadian regulatory body has welcomed Uber’s business model. The antitrust regulator of the North American country on Thursday stated the cab industry and local authorities themselves could adopt changes in the cab businesses introduced by entrance of start up like Lyft and Uber.
Municipalities, which to a huge extent are authorized to oversee cab services in the country, require reconsidering existing rules, the Competition Bureau of the country stated. Local authorities must focus on relaxation of regulations to end restrictions and permit more adjustable pricing on the amount of cab permits issued, it stated.
Uber news affirmed that the prohibition of services such as Uber “is a blunt regulatory instrument,” it added, noting that comforting some rules covering the taxi industry would mean ”lower prices, greater convenience and availability, and better quality of service through improved technology.”
The San Francisco based company, which is known for upgrading the conventional taxi hailing business and operates in greater than 300 cities across the globe, has encountered a backlash in several jurisdictions, particularly in Europe. One of the major ride sharing services Uberpop, has been disallowed in several countries.
Canada has also seen protest against the transporter. A Court in Alberta granted the authorities of municipalities in Calgary an order this November that banned the transporter from offering its services in the fourth biggest city of Canada until local legislators take the decision regarding how to govern the facility. Cab drivers in Montreal and Toronto – Canada’s two biggest cities – have protested against the app-based ride sharing organization.
Uber news today reported that Ian Black, who is known for heading the company’s operations in Canada, stated in a phone call interview the findings of the antitrust agency reaffirm a “growing consensus that there is a way forward to promote innovation, competition and still allow for ride sharing,” adding the organization supports the relaxation of regulations on the conventional cab industry. 
Uber is known for operating in approximately five dozen Canadian cities. Lyft, which is also based in San Francisco, does not yet share rides in the neighborhood of the United States.
Local Canadian regulators, such as their peers in the United States have reduced the number of plates or cab licenses, issued over the past times, the Canadian regulator stated. This has lowered down the levels of choice for customers and caused an increase in complains about prices and quality of services offered, it added.
Uber technologies informed that services such as Uber offer a “meaningful source” of rivalry through the means of lower fares, the bureau stated. 

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