Watch out for unlicensed taxis and rideshare services, City of Thunder Bay staff warn

The City of Thunder Bay is warning residents to be wary of people offering unlicensed rideshare services.

This week, the northwestern Ontario city ordered a business to cease operations after an investigation found it had offered thousands of rides to customers over several months without a license.

Doug Vincent, the city's manager of licensing and enforcement, said while under-the-board rideshare services may offer cheaper fees, they don't have safety measures that licensed businesses have. As well, anyone who gets into a collision in an unlicensed vehicle-for-hire likely won't be covered by the individual's insurance.

"People who obviously are looking for the most economical rides have to consider the consequences of taking a ride that sounds too good to be true, too cheap to be true, and check it out," Vincent told CBC News.

"It could result in a very unhappy holiday experience, and we don't want to see anybody hurt or any other things happening to our citizens."

Licensed taxi and rideshare companies are required to have drivers who are properly insured, have their driving records examined and undergo a criminal reference check. The minimum fee for operating an unlicensed vehicle-for-hire business in the city is $500, with a maximum fine of $100,000. 

Those who continue to operate after being ordered to stop can face a $10,000 penalty per day.

Uptick in rideshare groups online

Thunder Bay has two licensed taxi companies — Roach's Yellow Taxi and Diamond-Lacey's Taxi — and one registered rideshare platform, Uride. There are also several other specialty licensed vehicle-for-hire services.

Cody Ruberto is the founder and chief executive officer of Uride, which originated in Thunder Bay and operates in several cities across Ontario, Alberta, British Columbia and New Brunswick.

He has become increasingly concerned with WhatsApp groups where people compete with each other to offer the most competitively priced rides around town.

"There's over 1,000 trips per week happening right now [in Thunder Bay] in these types of groups — that's a pretty scary thing," Ruberto said. "It's a massive problem in Thunder Bay, more so than the majority of any other city that we operate in."

Any time a Uride driver turns on their app, they automatically switch from their personal insurance to the company's commercial insurance. Drivers can also leave a review after each trip to help keep operators accountable.

Without checks and balances like these, Ruberto said, the consequences can be devastating for anyone on the road.

There are a number of warning signs to watch for before getting into a vehicle, such as signage or decals that indicate the driver is operating an official taxi or rideshare service.

However, "this particular entity that we just investigated actually had these types of things available, and so it looked very legit," Vincent said. "The problem is that there were no insurances, no inspections, no record checks — none of the safeties that we would [have] in place."

Drivers must show their city-issued licence to operate upon request, he said.

Ruberto, who said he started his company to prevent impaired driving, said he's concerned even if an illegal taxi company or rideshare service is ordered to cease operations, their drivers could join an online group and offer rides the next day.

"If it was my sister, if it was a family member or someone getting rides in these groups, it's just a scary thought for me," Ruberto said.

People can file complaints about unlicensed taxis and rideshare services to local municipal enforcement services by calling 807-577-6536 or online at thunderbay.ca/bylaw.