Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences
Uber will slash prices for a number of routes in Toronto on the days after the city’s decision to freeze new licences.
Uber has suspended some of its services in Toronto amid the city’s legal battle with the company.
“The decision to suspend Uber’s operations is not related to pricing,” Uber spokesperson Tony West said in an email to the Star. “We expect our competitors to adjust their pricing for the market in their own city as they are in ours.”
But Uber also told the Globe that it expects the market to heat up due to competition, while “also saying that drivers deserve a level playing field.
“We want to work with Toronto to make sure that they get an Uber that is fair, reasonable, and affordable for all drivers, and that riders get a safe, positive, and reliable experience at all times,” West said.
Toronto is the first city to announce it will freeze a new licence for Uber. Uber is asking the city to freeze new licences pending the outcome of its appeal of a judge’s decision to cancel a previous agreement between the company and the city, which would have allowed new licences for Uber in Toronto city limits.
Toronto Mayor John Tory said Friday that Toronto will impose restrictions on Uber until the matter can be resolved with Uber, according to a press release.
At the same time Uber is fighting the decision to cancel the new licences, the company is reducing prices for some routes in the city.
In the city’s announcement on Friday it said it will cut fares for its UberX carpooling service starting at 9:30 p.m. ET, with fares remaining the same in the morning and evening.
Under its existing licence with the city the company said it will give its “current rider fare” at pickup. The rider fare is not defined.
The reduction means that passengers will be charged 15 per cent less when using the UberPool, and