Uber's biggest rival Lyft eyes Toronto expansion by year end

The ride-sharing service Lyft, one of Uber's fiercest competitors, will expand to Toronto by year's end, it was announced today.

Lyft, based in San Francisco and founded in 2012, claims to be the fastest-growing on-demand transportation service in the United States. Its move into the Toronto market will be its first outside the U.S., where it operates in 300 cities.

• Toronto proposes different rules for taxis, Uber drivers
• Uber not being upfront about upfront fares, drivers say

"When we thought about launching internationally, Toronto was a no-brainer for us," Tim Houghton, general manager for LyftCanada, said in an interview withMetro Morning.

According to Houghton, more than 50,000 people in Toronto have already downloaded the Lyft app to their smartphones, an indicator, he says, that ridesharing enthusiastsare looking for alternative options to taxis and Uber.

As part of its Toronto pitch,Lyftsays,"Wherever we are, we know it matters how you get there, so we've got our tuques on.

"From brunch inBloordaleand belly laughs on Mercer Streetto polishing off some late-night poutine at your favourite burger joint out inWoodbridge, we know Toronto is the place to be," the company sayson its website.

Lyft operates much like its competitorUber. Riders download an app to their smartphone,where they're able to request a ride at specificpickup and dropoff locations.

The app also provides an estimate of the ride's cost and sends a driverto the customer in minutes. Payment, including tips, are also managed through the app. At the end of the trip, riders have the option torate their drivers.

Rides starting in mid-December

Toronto issued a business licence to Lyft onMonday morning,which makesthecompany the fifthprivate transportation company licensed in the city.

Lyft drivers will be available to give rides as of mid-December, according to Houghton, with more registered cars coming in the early new year.

WhileLyftis finalizing prices for its service, Houghton added that ridersshould expectpricing comparable to other alternatives.

Lyft has reportedly been considering an international expansion for some time, andUber, its primary competitor,says it welcomes the competition.

"More options can help reduce congestion and pollution as consumers increasingly make the switch from driving their own car to using shared mobility services,"Ubersaid in an emailed statement.

The company has faced numerous controversies over the years, including how its drivers are treated.

LikeUber, Lyft'sdrivers are considered independent contractors and not employees, which may result in similar problems to Uber.

Houghton insisted, however, that Lyfthas tried to avoid some of the problems Uber drivers have expressed.

"We have plenty of drivers who make a decent living working full-time on the platform," he said. "We treat drivers better, and passengers have a different experience as a result."

Lyftmay snarl traffic,Beck Taxi says

Kristine Hubbard, operations managers for Beck Taxi Limited, a company that has waged a public battle with Uber in Toronto, said the appearance of another ride-sharingservice contradicts the city's plans to reduce traffic congestion.

"We're trying to get cars off of our main arteries and prioritize mass transit. Here we are with Uber that has 30,000 cars lined up Now we're going to potentially introduce that many more?" she told CBCToronto.

Hubbard also pointed that when city council introduced aseries of regulations forUberwhile allowing it to operate legally, Municipal Licensing and Standards committed to producinga report examining howUberdrivers may be changing traffic patterns on city streets. That report was due out nearly four months ago, Hubbard said.

"While we are doing things like the King Street pilot, finding ways to try keep our city moving, why would we clog it up further with vehicles just cruising around looking for fares? It such a contradiction I'm stunned," she said of the city's decision to give Lyft a licence.

However, Tracey Cook,executive director of Toronto's municipal licensing and standards department, said she believes services like Lyftcould actually help with reducingtraffic.

"The city has many priorities and one of those is ensuring that the public has access to safe, regulated transportation services," Cook said in a statement toCBCToronto."People having a variety of transportation options is a component of reducing congestion on our streets."