Uber saw 'error of their ways' and will work with Calgary regulators, Nenshi says

With a new truce in place, Mayor Naheed Nenshi says legal UberX service should be available in Calgary by early 2016, provided the ride-hailing company figures out how to properly insure its drivers by then.

After weeks of being at odds over legal issues,the company and the city jointlyannounced a plan on Fridayto work together on a mutually agreeable solution.

The move comes after UberX launched in October in contravention of city bylaws, defiantly saying it didn't recognize Calgary's existing rules for taxis as being applicable to its drivers.

• MORE CALGARY NEWS |Rachel Notley assassination chatter 'needs to stop,' Wildrose leader says
• MORE CALGARY NEWS |Calgary hit hardest by mortgage rules on homes over $500K: CIBC

The city responded by filing for an injunction and winning a temporary order compelling UberX drivers to cease operating in Calgary or facecharges ofcontempt ofcourtan arrestable offence.

Uber then suspended itsoperationsin Calgary.

The company now says it has reached an agreement to work "collaboratively" with the city as it crafts a new bylaw allowing for Uber and similar services to operate legally in Calgary, in parallel with the existing taxi system.

"While we were disappointed by the City's decision to seek legal action, we are encouraged by council's recent positive steps to bring forward a new regulatory framework, and have developed a positive working relationship with the city," Ramit Kar, Uber'sgeneral manager for Alberta, said in a statement.

'Error of their ways'

Nenshi said the city had been working with Uberfor "many, many, many months" prior to what he described as a sudden decision to launch the service unilaterally.

"The funny thing about this is, up until the day they launched, they were working with us on this stuff and then they chose to launch without the regulatory environment in place," the mayor said."And I think, perhaps, they've seen the error of their ways."

Under the agreement, the city won't seek a permanent injunction against Uber and the companywill continue to keep its service suspended for the time being.

Next steps

Nenshi said the new bylaw to allow for Uberis still being drafted andshould be ready by January or February, whenhe expects council will approve it.

He said the company would still have to figure out a way to be certain its drivers are properly insured for the type of driving they are doing, something that has proved challenging in Alberta.

An outstanding issue for transportation network companies and private for-hire vehicles continues to be "a lack of a provincially approved insurance product," the city said in a statement.

"Uber needs to work on getting that insurance product in place and I understand that the insurance should also be ready in the early part of 2016," Nenshi said.

The city said it will work with Uber and the provincial government"in the spirit of collaboration" in order to "resolve provincial matters related to this emergingindustry."