All systems go: Uber just needs drivers to start up in city

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This article was published 08/06/2020 (2111 days ago), so information in it may no longer be current.

After months of planning, ride-hailing service Uber has received a dispatcher licence from the City of Winnipeg, which should allow the company to begin operating as soon as it has enough drivers.

“We’re excited to come to Winnipeg,” said Michael Van Hemmen, Uber’s head in Western Canada.

For several years, Uber hinted at entering the Winnipeg market, but then decided Manitoba Public Insurance’s “passenger vehicle for hire” coverage was too restrictive. In March, the company changed course, saying the insurance framework would have to do, and it anticipated it would launch by summer.

“The model is workable,” Van Hemmen told the Free Press at that time.

Van Hemmen was optimistic the only barrier to launching the service in Winnipeg was the dispatcher licence and interest from drivers, who are viewed as independent contractors and not as employees. It was mere days before the COVID-19 pandemic led to the closure of the Canada-U.S. border, and right before Uber’s stock value plummeted by more than 50 per cent.

Now, as reopening efforts continue, it appears Uber is sticking to its pre-pandemic schedule for its local launch. Although, the circumstances will look much different than planned.

Last month, in a blog post attributed to CEO Dara Khosrowshahi, Uber said drivers or delivery people will be required to use an online checklist to ensure safety precautions.

“Before every trip, riders must confirm that they’ve taken precautions like wearing a face cover and washing or sanitizing their hands,” the post read. “They must also agree to sit in the back seat and open windows for ventilation.” The maximum number of passengers suggested for an UberX ride was decreased to three from four.

Another requirement is that each driver must take a selfie to verify they’ve worn a mask. Khosrowshahi wrote that drivers who don’t wear a mask won’t be able to go online as of May 18. However, media in Ottawa spoke to customers four days later, who said their drivers didn’t wear masks.

The Uber spokesperson said there are new feedback options to report whether drivers or riders are wearing a mask, which can affect their ratings and performance.

In the Uber system, drivers and riders rate each other. Ratings determine their success in getting and commandeering rides.

Van Hemmen said Sunday that drivers who don’t wear a mask or following precautions face “warnings to eventually deactivation” from the Uber system.

As Uber plans its expansion into Winnipeg, the company — whose stock has begun to rebound — is also in the midst of major cuts. The company laid off 3,000 employees in May and closed 45 offices, the online technology publication Tech Crunch reported. Those cuts came on the heels of the layoff of 3,700 employees, and as rides dropped by about 80 per cent. Despite those changes, Van Hemmen said driver sign-ups have increased in Canada, but not at pre-pandemic levels.

Other gig economy companies have also had an increase in applications as unemployment levels climb and many workers find themselves with reduced hours and incomes. Grocery-picking service Instacart added 300,000 contractors during the first month of the shutdown. While the increased gig labour force is good news for the companies, it also means the contractors themselves face more competition for gigs.

In Winnipeg, Uber is aiming to enlist enough drivers to launch the system, though Van Hemmen didn’t say how many were needed. The company is attempting to sweeten the deal by offering a one-time $500 bonus to the first 100 drivers who complete 20 trips after the launch.

The company is offering a temporary financial assistance program, available to drivers ordered to self-quarantine or those with active cases of COVID-19. Uber said compensation is determined by looking at average weekly earnings for the three months before drivers apply for assistance; the company is offering a maximum of two weeks of financial assistance.

To qualify, drivers need to have completed one trip in the 30-day period prior to their application for support.

ben.waldman@freepress.mb.ca