Ride-hailing company blames insurance issue for Fredericton launch delay

A ride-hailing business that's trying to expand to New Brunswick says it's facing a "major roadblock" with driver insurance.

Uride announced in November that it intended to start operating in Fredericton before the Christmas holidays.

But close to four months past that target, founder Cody Ruberto says the company, which already operates in British Columbia and Ontario, still only has about a third of the drivers needed to get going in New Brunswick.

The problem, said Ruberto, has to do with the province's insurance requirements.

"It won't work the way that it's currently set up," he said.

According to the New Brunswick Financial and Consumer Services Commission, drivers have to advise their insurance company if they want to start working for a ride-hailing company.

And the insurer can either refuse coverage, issue an amendment to the driver's policy or charge a higher rate because they'd have an increased risk of incurring a claim.

The company is also within its rights, the commission said, to require a minimum number of driving years in Canada as a condition for that kind of amendment or endorsement.

Ruberto said his company had reached out to many insurance companies, and only a couple seem to be offering the required coverage, with higher-priced premiums and on condition of six years of driving experience in Canada.

"This has discouraged many of our applicants to continue with the process," said an online notice from Uride.

More than 300 people originally applied to be Uride drivers in Fredericton, said Ruberto, but only 10 have proper insurance in order. And it would take 30 to 40 to begin operating.

Many don't have the required Canadian driving experience because they are newcomers to the country, he said.

For some, higher insurance rates would be a deterrent.

For others, like Craig Buchanan, switching insurance companies was simply more than he was prepared to do for a side-gig as a ride-hailing driver.