Ridesharing in Kamloops
Several rideshare companies operate using Apps that are looking to move into Kamloops (Kabu, Lucky to Go and Uride). What do potential drivers need to be concerned with to be an employee or contractor with one of these companies?
Driver
- Rideshare drivers in British Columbia are required to have a class 1, 2, or 4 commercial driver’s license.
- Class 4 commercial driver’s licenses can be restricted or unrestricted.
- Be sure to apply for one as soon as possible, as it can take some time to complete the process.
- 25 years or older
- 3-year driving history in Canada
- Pass an annual driving screening, including a criminal record check and driving history
- A smartphone that can download apps
- Photo
Vehicle
- ICBC vehicle registration valid at the time of application
- Obtain and provide a Commercial vehicle inspection report (locations all over Kamloops for that)
- Proof of work eligibility (birth certificate, passport; citizenship card; residency card; or work permit if not a Canadian resident)
- Commercial driving record (National Safety Code Abstract). Obtainable from the ICBC website
- GST account number, available online from CRA.
- Have to file GST returns quarterly and report to CRA
- Need to do basic bookkeeping for this, as you can deduct any GST paid from GST collected
- There is no GST on Tips
Operating
- Daily pre-trip inspections
- A daily log for breaks and hours driven
- The working time limit per day is 13 hours per day cumulative. You then need to take an 8-hour consecutive break
- Have to be able to show proof of these two things
- Driving for a rideshare company is a commercial driving job, even if it is just one trip a day
- There is an employment contract that sets out the driver’s rights and responsibilities as well
There has been some controversy in the past with Uber drivers and Uber related to their employment or service contracts. What was the issue?
Contracts are completed and reviewed online as part of the sign-up process to be a driver in Ontario. In the contract, the dispute resolution process between Uber and the driver was arbitration pursuant to the arbitration laws of the Netherlands. That would require the driver to commence an arbitration that came with a $14,500 USD application fee and the arbitration process occurs in the Netherlands. This fee did not include legal fees, travel, or accommodation.
In the case the Court considered, the Uber driver did not even earn $14,500 USD in one year. Filing a contract dispute in Court in Canada is $200 if over $35,000 and $50 if under $35,000 and the Court process is well known and local. The Uber driver sued Uber in Canada for the right to bring his dispute to the Canadian Courts.
Uber stood by the terms of the contract and said the Uber driver signed it so he was stuck with it. The Ontario Court held the contract was not fair, that Uber drafted it and there was an unfair bargaining power between the company and the driver because there was no room for the driver to negotiate terms, as he was either in or out
In the end, the driver was permitted to file his dispute with Uber in Canadian courts, but it took many years and thousands of dollars to get that opportunity. It is beyond important to read these contracts and understand every law and requirement, not just how to get the job and operate, but also how to get out of the job and what will happen if a dispute arises.
Will this continue to be a problem with the companies that either have obtained a license to operate in Kamloops or have applied for one?
Yes, every potential driver in Kamloops and area, who wants to operate as a driver for a rideshare company will need to sign a contract. They ought to invest in getting proper legal advice and proper bookkeeping or accounting assistance. A few hours of a lawyers’ time is worth it to review the contract, be sure the driver knows what his rights and responsibilities are, and negotiate terms that may be more advantageous to them should something happen. Spending $1000 now is better than tens of thousands later because you misunderstood a contract term. That actually could be said for any contract.
Being a rideshare driver is a popular income subsidy for people with a car who may not have a regular 9-5 job or want to work evenings or weekends if they do. Students and retirees often find this job enjoyable and a great way to earn extra money.
These new companies may be offering their drivers a benefits package tantamount to a regular employment position. Also, the retained profits for drivers can be as much as 80% of the fare cost.
The last time I saw a contract for local rideshare it was from Kabu. They had a dispute resolution clause with a required arbitration instead of court, but the arbitration centre was the one in Vancouver. It goes on to say that even if the arbitration converts to court action, trial by jury is prohibited. Commencing an Arbitration in Vancouver can cost from $500 to $3000 in upfront fees and so it is still very expensive and that cost does not cover legal advice or representation, travel, accommodation, cost of the arbitrator, and facility fees. The total cost of arbitration is thousands of dollars. It is important to know what is required in the event you have a dispute with the rideshare company as a driver or customer. What all of this means is that it is very important to read all of the paragraphs of a contract before agreeing to its terms, particularly a standard form online contract that governs a person’s rights during their employment.
If there are unclear portions, it is worth spending the time to see a lawyer and have the terms of the contract explained to you so you are aware of any potential consequences or limitations that will affect you in the future. A little foresight can save you a lot of headaches down the road.
Are there any legal issues that passengers need to be aware of when using this service?
The app will tell you the make and model of the car picking you up, the plate number, and the name and photo of the driver. The passenger needs to be sure this matches before getting into the vehicle. The passenger needs to be sure the car is displaying the company signage and that the driver’s permit is on display.
The same rules of the road prevail for car rideshare passengers (seatbelts, not distracting the driver, arms and legs in the vehicle, etc.).
Also, when a passenger signs up for the app, there is a standard form contract as well – don’t just scroll and hit I agree. Read it and understand what you are committing to by being a customer.
Terms to look out for:
What happens if there is an accident?
What happens if the driver is not following the rules of the road or behaves improperly?
What if your credit or bank card is charged improperly?
What if there is a software glitch?
How is your personal information stored and protected?
This app has your payment information, your contact details, your home address, and your location on GPS. How is that protected and what happens if there is a security breach?
All of this needs to be understood and accepted before signing up for the app and using the rideshare service. No one wants to have to figure it all out after something goes wrong!
If you have questions and would like a consultation, or for more information, please contact Priddle Law Group at (250) 434-8911 or email to make an appointment.