Higher rates have Uber reconsidering Winnipeg

WINNIPEG — Ride-hailing company Uber is considering giving Winnipeg a pass over concerns about insurance rates its drivers may have to pay to operate.

In a submission to Manitoba’s Public Utilities Board, Manitoba Public Insurance is proposing four different rate options that would see Uber drivers pay five per cent above their all-purpose coverage.

The provincially owned insurance company said the rate model is fair, gives drivers choice and prevents other vehicle owners from subsidizing Uber vehicles. But Uber argues such a policy could be cost prohibitive for some drivers and says unless a blanket insurance model is chosen, it won’t offer its service in Winnipeg.

The city and provincial government have previously paved the way for ride-hailing companies to start March 1.

The city’s cab industry has been critical of the decision, saying Uber drivers will pay lower rates and create an unfair playing field.

MPI’s proposal said rates for ride-hailing drivers would be different depending on the time of day the operator wants to pick up passengers, or whether it’s on a weekday or weekend.

Uber’s submission to the utilities board said those time bands could be cost prohibitive for drivers who work part-time only. “Based on the deficiencies in the MPI proposed product versus the type of insurance that is available to ridesharing companies in cities across North America, Uber will, unfortunately, be unable to consider expansion of services to Winnipeg on March 1, 2018.”