Uber drivers plead guilty, fined after 2015 sting

Thirty-four Uber drivers pleaded guilty to operating without the appropriate licensing and were fined $1,500 each on Thursday, nearly two years after they were caught via a covert sting operation launched by city hall.

The day in court marked yet another chapter in the rocky relationship between city officials and the brash U.S.-based ride-share company, which legally launched in Calgary in December following three tumultuous years spent trying to break into the Calgary market.

The charges came after Uber thumbed its nose at city officials and launched in Calgary in midOctober 2015, despite warnings from city officials its drivers would face heavy penalties for operating outside Calgary’s livery bylaw.

The city followed through on its promise and an ongoing sting operation resulted in several Uber drivers being slapped with infractions for operating without proper insurance or licensing before the U.S.-company ceased operations amid a truce with the city in December 2015.

Marc Halat, Calgary’s chief compliance officer, said Friday a conclusion on most of the charges was reached in court Thursday.

“Long story short, we did obtain a guilty plea on 34 of the 36 violators — those being the drivers in October 2015 who provided vehicle-for-hire services while not having the appropriate licensing and safeguards in place,” he said.

Of the two remaining violators, one case was withdrawn due to an error in the process and the second will go to trial, according to Halat.

Each of the 34 guilty pleas came with a $1,500 fine and Uber refused to say Friday if it would pay the fines drivers incurred, offering a statement instead. “We are aware that some partners have chosen to reach a resolution with the city,” the company said in a statement.

“Since our relaunch in Calgary following the new regulations, our teams are focused on compliance.”

Halat said the enforcement in 2015 was about the safety of citizens and he’s proud of the efforts staff took behind the scenes to uphold accountability.

“We’re not ever proud of having to take out the hammer. That’s not what we’re about. We’re about compliance,” he said.

“And if you recall, we really tried and made extensive efforts to obtain compliance.”

The ride-hailing giant returned to Calgary, legally, in early December, after city council voted 11-4 to tweak the livery transport bylaw, nine months after Uber abandoned Calgary when a new ride-share bylaw the company labelled unworkable was passed in February 2016.

The tweaks to the licence fee bylaw, which are being tested for 12 months under a pilot project, appear to be working, Halat said.

We’re not ever proud of having to take out the hammer. That’s not what we’re about. We’re about compliance.