pc28����

The decision, which was approved 16-7 with Chow’s support, will pause the issuance of new licences to so-called “private transportation companies” at current levels, which city staff said sits at about 52,000.

Although the motion stipulated the limit will stay in place only until staff deliver a report on further regulating the industry at the end of 2024, councillors who opposed the move predicted it would be made permanent.

“Do you not think this is a bit of a slippery slope, just doing this without any warning to the industry?” asked Coun. Jaye Robinson (Ward 15, Don Valley West) of Coun. Mike Colle (Ward 8, Eglinton-Lawrence), who introduced the unexpected motion.

“I’m not worried about the industry. I’m worried about our air quality and I’m worried about newcomers to Canada being paid $7 an hour to drive around,” Colle replied.

In a speech to the chamber, Chow defended the freeze and its hasty implementation, arguing that announcing it beforehand would have sparked a run on licences.

She said the policy would boost the wages of drivers — many of whom are low-income, people of colour, or newcomers — by cutting down on competition, and help tackle pollution from the transportation sector that is responsible for one-third of the city’s greenhouse gas emissions. The vehicle-for-hire industry makes up about four per cent to six per cent of that amount.

“We need to put a really good framework, a good system in place so that drivers can make a living, and that we will have a good system without contributing too much on congestion and greenhouse gas emissions,” Chow said.

In a statement soon after the vote, Uber Canada predicted the moratorium would “increase wait times and the cost of a safe and reliable transportation option.” At a time when the cost of living is already on the rise, the freeze will “ultimately hurt the diverse group of Torontonians who rely on ride-share as part of their transportation mix and those who drive ride-share for additional income,” the company said.

Uber added that it “will be reviewing all legal options,” and cited comments Toronto’s city solicitor made at Wednesday’s meeting that the company said suggested council’s decision lacked procedural fairness.

Heading into the council session, members were scheduled to debate a report that recommended reducing greenhouse gas emissions in the vehicle-for-hire industry by requiring licensed drivers — including taxi owners and drivers for Uber and Lyft — to use zero-emission vehicles by Jan. 1, 2031.

Council passed that recommendation, but before it did Colle tacked on the surprise motion to suspend ride-hailing licences.

Drivers and transit advocates have argued that limiting the number of ride-share vehicles on the roads, a policy approved by New York City in 2018, is a more effective and equitable way to reduce emissions rather than requiring drivers to purchase an expensive new car. One recent study found app-based drivers make roughly $8 an hour.

Chow lobbied councillors to back Colle’s motion, and although it passed easily, the mayor’s budget chief Coun. Shelley Carroll and Speaker Frances Nunziata were among notable dissenters.

Thorben Wieditz, an advocate with RideFairTO, which supports stricter rules for the ride-hailing industry, said the vote represents a “180-degree change” from “eight years of deregulation” under Chow’s predecessor.

John Tory’s office was heavily lobbied by Uber and in 2016 he supported a vote to legalize ride-hailing after the company started operating in pc28����in contravention of existing bylaws. The number of app-based drivers has since grown to dwarf taxi owners, of which there are only about 5,000, and critics say the industry’s rise has hurt the city.

With Chow as mayor, “there’s a real redirection of policy from the ground up rather than policy that is being made behind closed doors in consultation with the big players and multibillion-dollar corporations,” Wieditz said, asserting that the licensing pause will help get more people back on Toronto’s struggling transit system and improve app workers’ lives.

But Lyft says the new policy will backfire. In a statement, the company cautioned that imposing a pause “without any research into its implications is counterproductive.” It said as demand continues to rebound from the pandemic, app companies’ drivers will be drawn to the busiest areas in Toronto’s core, “exacerbating traffic and limiting transportation options for those living outside the city centre.”

Correction — Oct. 13, 2023. Uber, Lyft and the ride hailing industry overall in pc28����are already regulated by the city. A prior version of this story incorrectly stated the city is looking into regulating the industry.