Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences
Uber has announced an increase in the price of its ride-sharing service in Toronto following the city’s decision to freeze new licences for the industry.
Uber said in a blog post on Wednesday that it would impose an additional $1.50 per ride in the Toronto region, and an additional 3.5 per cent fee on all trips beyond 250 miles, meaning a longer journey or trip to an outlying area or destination with more stops or diversions would cost Uber consumers more money.
The company said that the decision was made following an earlier increase in pricing on Wednesday.
Ride-sharing services are now subject to a 30 per cent fee on trips to cities outside of city limits, like the Greater Toronto Area, and a 30 per cent surcharge for journeys anywhere outside of the downtown.
Uber said that it was still reviewing the city’s decision, with the possibility of cancelling new licences or asking the city to make changes to the existing ones.
“There are concerns about the impact that this decision will have on the growth of our business,” it said in a statement. “Our goal is to get as many people around the world onto ridesharing, but that’s only possible if we can meet their needs and at a lower cost.”
Earlier, it said that its ride prices “might go up slightly,” and that it would continue to offer its service to the region until it reaches a deal with the city officials on a new ride-sharing service provider. Earlier it had said that it would wait to give the city an update on the issue unless the city reached an agreement with it.
Uber drivers in Toronto said that they expected an increase in fares to go along with the increase in the price of the service.
“Uber’s pricing is