B.C.'s ride-hailing restrictions will stall service, critics say

The fanfare surrounding the B.C. government's announcement about ride-hailing legislation has sounded a disappointing notefor many, who say what's being promised is a watered down version of the service.

Drivers for services like Uber and Lyftwill need to have Class 4 licencesto operatein the province, which means they'll have to undergo criminal record checks and medical fitness checks every five years.

The legislation alsolimits the number of ride-hailing cars on the road, and introduces stiffer penalties for illegal taxis and ride-hailing companies.

On the other hand, taxi and ride-hailing drivers won't need separate chauffeur permits for each city they drive in.

Concern over restrictions

But one criticin Vancouver's hospitality industry said ride-hailing only functions when it's free of restrictions.

"It feels like time and time againno one from the government has ever been in a Lyft or ride share before ... because supply and demand is how this whole thing works," said Damon Holowchak, co-owner of the Donnelly Group, which ownsseveral pubs in Vancouver.

Transportation consultantVictor Ngo said that as well asmedical, security and safety checks, the Class 4 licence requiresspecial insurance, which will likely limit the number of drivers.

"One of the benefits of ride-hailing is it can attract different types of people, people who want to work a quick shiftto make a few extra bucks, or want to be more full time.There is range of flexibility on what kind of positions they can take. With Class 4, it reduces that flexibility," he said.

Province 'limited by insurance'

But Transportation MinisterClaire Trevenasaid supply won't be a problem, saying "those are some of the details that need to be worked out to make sure cars are available when they need them."

On Monday,Trevenadeclined to give an estimate for when ride-hailing vehicles might actually hit the streets in B.C., saying the province is "limited by insurance."

The Insurance Corporation of British Columbia said it will work with the government, the ride-hailing industry and the taxi industry to ensure a smooth transition.

"ICBCwill be ready to deliver the blanket insurance certificate, that we anticipate will be usage-based, when the various detailed amended regulations are in place," the auto insurer said in a statement.

With files from Tina Lovgreen