Uber critical of Vancouver for proposed ride-hailing fee hikes

One of the most prominent ride-hailing companies is taking aim at the City of Vancouver over proposed increases to service fees.

Last month, Vancouver city council heard a report detailing a number of fee increases to services as a means to generate more revenue without raising property taxes.

Ride-hailing was among those listed, with a staff report recommending a service fee increase for rides to and from the downtown core. The fees were initially put in place to reduce curbside congestion during peak times.

The current service fee is $0.30 per ride, with staff recommending that rise to $0.45 in 2024, and then to $0.60 in 2025. The city says these increases could add up to roughly $3 million in additional yearly revenue by 2025.

However, Uber says the potential hikes will make it too expensive for people to use its service downtown.

“Another fee increase will result in tens of thousands of fewer trips across the city. This could result in people choosing to stay home, which hurts local businesses,” Uber Canada spokesperson Keerthana Rang told CityNews.

She explains Vancouver already has the highest fees for Uber rides in Canada.

“Now is not the time to make it more difficult to go downtown,” Rang said.

The sentiments are echoed by Mothers Against Drunk Driving (MADD), which says in a statement that more expensive ride-hailing services could lead to more people driving their own vehicles while impaired.

“Independent research shows that cities that have affordable rideshare options have seen a decline in impaired driving. This increase in fees will make people choose to take their own vehicle when going out,” said MADD Canada Chief Operating Officer Dawn Regan.

The fee increase report was filed for information purposes in September, meaning council could choose to include it in the 2024 budget once deliberations begin in December.