Rideshare website ruled illegal

Nov 12, 2008

Energy reporter

Rideshare service PickupPal.com will begin warning its Ontario customers today that they're likely breaking the law by co-ordinating car rides through the popular website.

The move comes after the Ontario Highway Transport Board ruled the website was operating illegally in the province by helping drivers offer rides to strangers for a fee. The board issued its decision even though legislation was proposed last month that would legalize ride sharing.

Chartered bus company Trentway-Wagar Inc. had asked the transport board to ban the site on the grounds that, under the existing Public Vehicles Act, users of the service were operating their cars as "public vehicles" without a proper licence, insurance or compliance with safety regulations.

Trentway was particularly concerned about people using PickupPal.com to organize regular van shuttles on high-traffic routes, such as between Toronto and Montreal, which would eat into the bus company's revenues.

With new legislation pending, Roseneath, Ont.-based PickupPal Online Inc. had hoped the transport board would stay the charges. But the board went ahead with the case, agreeing with Trentway and ordering the online service to immediately stop its illegal activities.

Eric Dewhirst, co-founder and chief technology officer of PickupPal, said that its Ontario customers are still permitted to use the site, but only as a way to organize carpools.

"You must travel from home to work only, you can't cross municipal boundaries, you must ride with the same driver each day, and you can't pay the driver more frequently than weekly," he said.

But PickupPal, which has grown popular in several countries around the world, touts itself as much more than simple carpooling. It is promoted as a way for people heading to the same location at the same time to share a ride, such as three university students heading to the same hockey game or rock concert.

Last month, for example, PickupPal partnered with the Toronto Argonauts Football Club to provide ridesharing services for their home games.

Students are a key demographic for PickupPal, added Dewhirst. "Now all university students who use the service, well, they can't, because it's against the law."

The company will put a notice on its website today outlining criteria for using the service in Ontario. It will also send out emails to existing Ontario members with the same message.

But actually stopping people who have been warned will prove challenging.

"It's a pretty tricky thing to do," Dewhirst said.

"How, really, do we determine who is using it illegally?"

PickupPal is hoping that legislation proposed in Ontario to legalize ridesharing will be passed and enacted quickly.

The new bill would permit any car owner to drive up to nine passengers to and from a location that is mutually convenient, as long as only one trip is made per day and payments are limited to recovering the cost of fuel.

Transportation Minister Jim Bradley proposed the changes as a way to "reduce harmful emissions, ease traffic congestion and fight climate change."

thestar.com