Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences
On Wednesday, Uber said it will raise prices for new drivers in Toronto, following the city’s decision to freeze new driver licences and put a hold on new ride-hailing apps.
On Thursday, Uber said all of its Toronto-based drivers will receive a $50 per week bonus, effective immediately.
“We’re giving every driver a 50-50 chance this week,” said Uber’s head of public policy.
That’s a significant increase from the $15-per-week bonus that drivers in the city received earlier this year if they passed the necessary background checks.
Uber did not immediately respond to a request for clarification about its offer.
Toronto’s government has previously frozen the licences of drivers who hail ride-hailing services. Uber argues this is tantamount to a ban.
“This is what Uber does on a daily basis,” said Uber’s Uber Canada in a statement issued on Thursday.
“We will no longer be able to process a driver’s new ride since the government is effectively putting a hold on new applications.”
Uber said that if it cancels Toronto’s new licence scheme, it will continue to operate its own in-house app, which will allow drivers to accept all incoming and outgoing rides through the app. This feature is currently not available in Toronto.
Uber says it also reserves the right to stop providing service on a regional or local basis in the future if it believes services are no longer a “fit and proper” fit for the local market.
In a tweet on Thursday, the mayor of Toronto suggested Uber is trying to manipulate the system.
“When you have a company running an illegal business model, you create all sorts of