Uber introduces new plan to keep operating in Quebec

The head of Uber's Quebec operations said the ride-hailingcompany is prepared to temporarily suspend its activities in favourof a new pilot project that it unveiled today.

Jean-NicolasGuillemettemade the suggestionat legislative hearings underway at Quebec's National Assembly on Bill 100, which would force Uber drivers to conform to the same laws as cabbies with regard to regulations such as permits and taxes.

Uber says the bill, if enacted as is, would mean the end of the company's operations in Quebec.

Uber's proposed solution

The proposedpilot project would see:

• ride-hailing companies such as Uber buy a $100,000 operating permit each year.
• pay a set tax of 35 cents per trip.
• ride-hailing companies would also pay a tax of seven cents per ride to Quebec's automobile insurance program
• begin paying both GST and PST after the first dollar of every ride and provide the government with income summary for every driver every threemonths.

Uber estimates the tax would bring Quebec more than $3 million a year.

IfUbercan sit down with the government to talk and find common ground, "we are ready to suspend our operations during that time,"Guillemettesaid.

"We are showing good faith."

Government skeptical

Transport Minister Jacques Daoust and other members of Quebec'slegislature reacted skeptically to Guillemette's offer.

"In terms of how much taxi permits represent, it's verymarginal," Daoust said.

Daoust noted Quebec's taxi industry was founded on the idea ofsupply management and that the government enforces a system wherebypeople have to pay sometimes as much as $200,000 for a permit to drive a taxi.

He said that if the government allowed Uber to operate withoutbuying into the permit system, the value of existing permits woulderode.

Uber acting like 'hardened criminal,' says taxi lobby

Tuesday morning, the head of a taxi lobby inQuebec accusedUberof actinglike"a hardened criminal."

Guy Chevrette made the comment today inQuebecCity ahead of the start of legislative hearings into a new bill seeking to regulate the U.S.-based company.

"[Uber] behaves like a hardened criminal," he said. "Itknows it exists in a law-based society. It knows we have laws and rules. Someone who doesn't respect laws and rules, what are they? They're robbers," he said.

The former Parti Qubcois transport minister told reporters he thinks Uber will try and stall for time in order to impede the passing of the legislation.

• Full details on legislation here

Bill 100 would force Uber drivers to conform to the same laws as taxi drivers regarding regulations such as permits and taxes.

Chevrette says Uber steals money from the state because its drivers don't pay for permits and don't have to shell out for other fees and taxes.

"They steal our taxes," he said. "I'm ashamed that our government is taking so much time to stop a thief," he said.

He said if the government decides to end the taxi-permit requirement, it has to compensate all the drivers who have already paid into the system.

TransportMinisterJacquesDaousthas saidthe legislation is aimed atlevellingthe playing field in Quebec and ensuring everyone follows the rules, not at pushing out the ride-hailing service.

Taxi drivers have mostly come out in favour of the bill,whileUberhas saidit wants to reach a compromise with the Quebec government.

• ANALYSIS: IsJacques Daoust a dead man walking?

Daoustwants to pass the legislation in June.

This is the second set of hearings involving Uber this year. Legislative committee hearings were also held starting in February on the future of the taxi industry.

The hearings run from today until Thursday.