Uber will not expand into Winnipeg due to disagreement over insurance structure

An Uber spokesperson has confirmed that the American ridesharing giant will not expand its services into Winnipeg, Manitoba, due to a disagreement over the province’s proposed insurance plan structure for rideshare operators.

“Based on the deficiencies in the [Manitoba Public Insurance] proposed product versus the type of insurance that is available to ridesharing companies in cities across North America, Uber will, unfortunately, be unable to consider expansion of services to Winnipeg on March 1st, 2018,” an Uber spokesperson told MobileSyrup via email.

According to a story from BNN, Manitoba Public Insurance [MPI] — the Crown corporation tasked with providing auto insurance to residents of Manitoba — proposed four different insurance rate options that would cause Uber drivers to pay five percent “above their all-purpose coverage.”

“In the absence of a commercial, blanket policy designed to cover all drivers during ridesharing activity, Uber will find it difficult from a risk and compliance perspective to do business in Manitoba,” said the same Uber spokesperson. “We feel that this will be detrimental to the citizens of Manitoba who are seeking efficient, safe transportation.”

Manitoba’s provincial government passed legislation legalizing ride-sharing services on November 17th, 2017. The new rules will come into effect on March 1st, 2018.

Source: BNN