I’ll Never Let Canada Live This Down: Evil Carpooling Startup Fined
by Michael Arrington on November 12, 2008

A ridiculous update on a ridiculous lawsuit: In August I wrote about a carpooling startup called PickupPal. The idea is that people can gather on the site to find others traveling to the same places, and carpool there to save gas.

Great idea, right? Wrong. The bus companies freaked and sued under an Ontario law that limits carpoolers to traveling only from home to work and back, riding with the same driver every day and paying only by the week, among other restrictions. This is despite the fact that the government has spent “billions” in carpooling lanes.

Anyway, the court case was decided and PickupPal lost. They were fined CA$11,000 and forced to keep that despicable carpooling activity within the strict limits of the law:

Well we got our ruling from the Ontario Highway Transportation Board (OHTB) and they say that it is illegal to Rideshare in Ontario, (here is the official decision [PDF 0.98 MB]).

The only way you can ride with someone is if you meet ALL of the following extremely impractical set of specific criteria:

* You must travel from home to work only – (Not Home to School, or Home to the Hospital or the Airport)
* You cannot cross municipal boundaries – (Live outside the city and drive in – sorry you cannot share the ride with your neighbour)
* You must ride with the same driver each day – (Want to mix it up go with one person one day and another person another day – no sorry cannot do that – must be same person each day)
* You must pay the driver no more frequently than weekly – (Neighbour drives you to work better not pay her right away just in case she drives you later on in the week)

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  • Adolf bin Streisand - November 12th, 2008 at 6:25 am PST

    Bet this will piss off the “I’m moving to Canada if [insert grievance du jour here]” crowd.

  • What could possibly be the rationale for the law? Puzzling.

    • Probably bus companies having too much influence on elected law makers. This kind of special interest is not limited to copyright laws! ;)

      • Or having had it. The law is outdated and under revision by the current provincial government. However, I don’t doubt that when it was written and passed, was during the fascist Conservative Party regime of Mike Harris, friend of big business and enemy of everything else.

      • The Carpool lanes were only introduced in Ontario a couple of years ago. So I doubt the law is that old.

      • If you read the decision you would see that the judgement was based on legislation from 1977, not anything passed under Harris.

        It’s simply a case of an over reaching judiciary using an archaic piece of legislation to help out businesses. The other mentioned case of this type to be decided was from 1992, with what appears to be the same outcome.

        So you have one case under Rae’s watch (NDP) and one case under McGuinty’s watch (Liberal) and somehow people still try to blame Harris??

    • Back in the 70’s when carpooling became all the rage because of high gas prices they quickly enacted a law to define what carpooling meant. Once the law got passed the Bus companies have been lobbying heavily to protect it and to not expand the definition to prevent ridesharing between cities by individuals. Ontario is the only jurisdiction in the world to have this kind of law and the Bus companies have been exploiting it to their benefit.

      Cheers – Eric

    • Ontario unions have tremendous political influence, including the one that represents drivers and other bus company employees. The bus companies themselves have hardly any influence as they’re just not that big.

    • In Canada we love to tell people how bad the US is when it comes to pollution but stuff like this highlights how hypocritical we are. In Edmonton where Gretzky came from our airport taxi’s are not allowed to take fares to the Airport from the city. They are only allowed to take fares from the airport to the city. Furthermore city taxi’s can only take fares to the Airport and are not allowed to take fares back.

      Thus we have 100’s of wasted trips each day burning gas because well we are idiots. And it makes you angry because we shoudl know better…but we don’t care I guess or not enough of us do.

  • Thats absurd !..

  • Same thing will happen in the US….watch, socialism looms…and people will get what they voted for.

  • I’m not surprised. Most of these seem to be intended to limit taxi’s and others from utilizing the carpool lanes. They won’t change these laws since they don’t want it to become a commercial lane.

    Don’t forget, even though governments sound sincere about carpooling, they really aren’t… governments make a lot of money off of gas taxes. Reducing driving doesn’t really help governments cover their budgets. They just want enough carpooling to prevent the need for building larger roads (which costs money). They don’t want to fall victim to their own success.

  • Are there crazy laws like that in the U.S.? I guess we won’t know until a similar startup tries it here.

    • In the San Francisco Bay Area there are many locations where you can get a “casual carpool”. You stand at a designated spot and wait. In line. A car pulls up, as many people as can climb in do, and off you go. Generally, these casual carpools go into San Francisco in the mornings and back out to wherever in the afternoons. They are especially popular in the East Bay as a way of avoiding paying the bridge tolls.

    • Ohmygod there sure are — tons of them. For example, the BART in Oakland doesn’t go all the way to the airport to protect cabbies. They don’t want it to be too easy. So you have to take a bus from the BART station. Net effect, if you like taking the train to the airport you go to SFO instead. Much further away but a lot faster to get to! We love our country, even thought it’s totally FUBAR.

  • First off – its not all of Canada – just Ontario has this ridiculous law as far as I know.

    Our public transit authorities and bus companies have an enormous amount of influence. Its not just car-pooling.

    Our mayor here in Toronto is a ‘green’ mayor – which means he is against the automobile – but he is also pretty much against anything that isn’t the TTC.

    • Miller isn’t as pro-TTC as you make him sound. I can think of two other city politicos who are much more controlled by public transit interests. However, this hasn’t anything to do with public transit.

      It has entirely to do with companies like Laidlaw and Trentway-Wagner trying to shut out any competition, and using their connections at Queen’s Park to do it.

      Michael: Mind s/Canada/Ontario/ on that title, please? There are other things that you can use to shame our entire country, but this is a provincial matter.

  • After readding the story here, I think the people in canada should join together and have that law change. I don’t know the government structure there but here in the USA the group of people could contact their congress man/women.

  • Just as many states have stupid laws that do not necessarily reflect poorly on the US as a country. A stupid law in one province should not condemn the country as a whole. Hate Ontario (many Canadians do) for this one, not Canada. :)

    • Well sure. Let’s say person A has a house and likes to urinate in the corner of a room. By your logic, the stench doesn’t reflect poorly on person A, it’s the corner that is filthy!

  • these bus companies are hosers, as are the legal eagles (beavers?) that ruled in their favour. especially in light of our current eco-constricted times.

    HOV lanes five steps: forward, this law: 4 steps back.

  • pfft… yet another indication of the total brainlessness in evidence in government. I live in Canada (not Ontario) and the whole case is ridiculous. Apparently according to this draconian ruling it’s illegal to drive your friends kids to school, or your colleagues to the airport… what hogwash…

  • Canada again proves that they’re not really that liberal.

    When I lived in Montreal, I would do ride-shares to Ottawa and Toronto through student boards and forums. Are these illegal as well? How are they going to enforce it?
    When will the government actually encourage people to self organize in the most efficient way? Growing up in Ottawa, I know that riding bicycles in -40c is not really possible (ala Dutch), but ride sharing seems like a great idea that’s ALREADY popular. Way to go, Canada.

    • Hey Kat – perhaps you heard of Allo Stop in Montreal? Well the Ontario Government shut down the Ontario office in 2001 and prevented them from allowing people to ride from Montreal to Ottawa and beyond. What they do is wait until something get’s big enough and then they move to shut them down. They hired a private investigator to go for a ride from Toronto to Montreal – the crime “crossing municipal boundaries”. It was a guy with his 11 year old daughter driving to the east coast giving someone a lift. Big Brother for sure!

      Cheers – Eric

    • Concerning Canada and liberality, don’t you think those laws look like they were written in a legal orgy of drunken Taxi and Bus Union bosses?

      When you let the unions start writing your laws, I think you qualify as liberal…or at the very least, a smidgen left of center.

      • This isn’t left or right – just plain old corruption. As a Canadian, I’m miffed that we’ve let companies (public or not) integrate themselves heavily into local bylaws. This is totally unacceptable.

      • Unions had nothing to do with this law. It had to do with corporations buying laws from a Conservative government in the 70s, and gaining more power to screw people over in the 90s.

  • Does the police actually stop people to check whether they are sharing a ride in Ontario? This ruling is simply ridiculous! I wonder whether they are going to introduce it in the UK as well. Surely some Health & Safety officer must be reading Techcrunch! :)

  • That’s it! I’m moving to the US……after Jan. 20th.

  • I grew up in Ontario. It sucks. This law doesn’t surprise me whatsoever, seeing as Ontario is perhaps the most anal-retentive, overly politically-correct place on earth.

    The irony is astounding, as is the concept that in today’s sputtering economy AND growing environmental concerns, you’d expect at least one forward-thinking individual in a position of power in the Ontario provincial government would have the balls to stand up to this and question the logic?

    Alas, no. Serves them right. Move to Quebec where the laws are lax and the people are normal, not uptight enough to turn a lump of coal into a diamond with their sphincters.

  • Its really sad that companies are more concerned money than actually doing what is right for our environment. But hey what else is new right?

  • How are they going to figure out if the payment is weekly or not? Is the payment check or CC only, subject to a government employee’s presence?

  • Ridiculous law. let’s stop efforts to decrease traffic congestion and pollution, shall we.
    On another note, I thought this sites’ idea could be good here in Sao Paulo Brazil, but then i thought about the car jackers… hahaha! Order your new car from carpoolers.com.br, b.y.o hand gun.

  • The entire parliament of Canada and of Ontario and Quebec is run by the Italian MAFIA.

    anticorruption.ca/forum/phpBB2/viewtopic.php?p=6535&sid=e60dbbfa98741c84846e6c95b3d32877

    nicaso.com/pages/doc_page180.html

    en.wikipedia.org/wiki/Sponsorship_scandal

    en.wikipedia.org/wiki/Airbus_affair

    I was in ITAC public sector which dealt with the federal govt of Canada. ITAC took drastic measures to delete my name from all their documents and publications in response to my telling people what was going on.

    When in the organization and having talked to govt of Canada officials I found out about secret investigations about no-bid contract holders’ competitors having been created with public tax money and other highly questionable activity. These are unknown to the public and are kept secret by the govt for the benefit of their friends.

    The Mafia, and no bid contracts are the norm in Canada. Canada is a Mafia state. Literally. The CIA eluded to it several times and directly linked Gagliano from Ontario, but there are MANY others, especially in Ontario and Quebec.

    It would take time and research to categorically list all the instances that were REPORTED of the Canadian, Quebec, and Ontarian govt officials carrying out corruption on behalf of their business friends, but I will not for the sake of brevity.

    Canada is still a parliamentary monarchy and it as a whole needs to go and be replaced with a republic. At the very least our CIA and FBI should start to think of extra-ordinary renditions on the mafia figures in the govt of Canada. That’s my opinion.

    • Lol wut?

      And here I thought I was a paranoid, anti-government type. You sir, have won.

    • Whatever…. Italian mafia? The pizza must be excellent up north then

      • The reality of a county like Canada and Ontario and Quebec being run by the mafia and organized crime is anything but funny.

        I’ll get specific. In early 2007 Sylvain Cyr from the govt of Canada’s public works dept used federal tax money to create a secret unfavorabke report about competitors of micosoft which he and others award no bid contracts to.

        This happens every day there. The BDC is rampant with corruption and the control billions in federal funds.

        In Quebec and Ontario biker gangs are involved as well.

        Canada is a very very very bad place.

        posted from my t-mobile G1 google phone at lunch

      • Crown corporations are fronts for organized crime viwa the govt of Canada.

        Mexico is extremely similar I hear. That’s what allows monopolies like Rogers there and Carlos Slim in Mexico respectively. Rogers and other companies and gangs literaally control the govt there

      • Josie: In Ontario, it is. Pizza Nova FTW.

  • I wonder what that Chris Beercosoftware guy has to say about this.

    (No I don’t.)

  • “The CIA eluded to it several times”

    Should read the “the FBI eluded to mafia involvement in the government of Canada several times”

    sorry about that.

  • You should note the bus companies used existing law that the Ontario government recognizes as out of date. As such new legislation is being pushed through that will allow this type of ride sharing venture. It’s fun to demand public hangings in the comment sections but please get an understanding of the entire story before demanding world condemnation. The bottom line is a loophole existed that is now being closed.

    • Bleh… if you read the decision, PickupPal had to pay $8000 to the farking bus company in fines (legal fees?). I suppose the decision does indicate that PickupPal did not want to settle (second to last page) and dragged it into a board hearing and that was the reason for the fines.

      I still think fining a ride-sharing website is just ridiculous.

      • If they appeal, it’ll probably get reversed, though. Nothing is ever settled until all the appeals are used up.

      • There was no settling option – we could admit we were guilty and face an unknown legal costs from the bus company, (2 days after the hearing they said the cost was 25K – http://www.pick...legal-costs.PDF) – or we could go to the hearing and present our side of the story and let the judicial process follow through.

        Also the laws have not changed yet and there are no guarantees that they will – they are proposed changes but that does not mean that much. As for an appeal – there is no appeal process – all judgments are final.

        Cheers – Eric

    • Aw, let the proles have their Two Minutes Hate.

  • Yep, it’s all about corporate influence.

  • This makes me laugh and cry at the same time.

  • If I ride my horse to work, is that considered rideshare? There are two of us, I have to pay for it’s food every week, I ride with the same lifeform every day, so Canada is OK for that, right?

    here’s a though: send all Prius from the US across the border to Canada. We don’t need them here in the US, we have Tesla. Get at least 500,000 Prius in Quebec, then make them drive at 40 mph, then make them turn their radio on. The radiation will be enough to pop popcorn. Then some of those airheads in the Canadian Parliment will go “Pop!”

    • @Tostada-nobrain
      The Prius is an excellent car. The tesla is an useless expensive fancy toy and an abysmal failure… it is very fast and that will help the company reach the deadpool very fast also.

      • Yea, look at the performance specs page. Aside from the engine, everything else is basically standard parts. It’s a trap for people who don’t know jack about cars. For instance check this excerpt from their website, “Brakes — Hydraulically operated. Tandem master cylinder with vacuum servo and anti-lock braking system.”

        Most brakes since the 1920’s (depending on application) are hydraulically operated. Most modern brakes since 1968 are tandem (with 2 pistons and a master cylinder). Vacuum servo? Well yea, how else would you break hydraulically? And ABS has been an overused marketing term since the 70’s.

        Same goes for the suspensions, chassis, battery, etc. The only thing nice about it is the 0-60 time and the 0 emissions. but if they’re going to fluff up the specs with that much jargon, then obviously they are trying to compensate.

        Total lure for eco-conscious people with no knowledge of cars and the economy. Where are you going to fill up? They don’t have an electricity station every 220 miles, you know.

  • That is the most absurd thing I’ve seen. Canada used to be a bastion for green thinking, but now with the Alberta Tar Sands (the worst ecological disaster period) and denial of startups helping carpooling actually happen, they’ve fallen off.

    Blame Canada.

    • ‘Blame Canada’ AND Robin Williams?

      You, sir, have gone too far.

    • You shouldn’t even have to deal with this Eric, just like the proposed iPod tax, this is insane.

      http://www.cic....ook/look-20.asp

      “I swear (or affirm) that I will be faithful
      and bear true allegiance to Her Majesty
      Queen Elizabeth the Second, Queen of Canada,
      Her Heirs and Successors, and that I will faithfully
      observe the laws of Canada
      and fulfil my duties as a Canadian citizen.”

      Why do you have to swear allegiance to a leader of another country and her brat children to be a citizen of Canada?

      Extra-ordinary rendition on Harper, the governor general and the b1tch @ss Bloq Quebecois assembly, and it would be all over. The gangs would digress, and liberty would reign in Canada.

      The whole country of Canada is a joke. The charter of rights and freedoms says that English is an official language, but there are provincial laws like law 101 in Quebec that say that you can’t have signs in English only or brochures ect…

      The country was conceived and implemented by absolute retards like John A. MacDonald who himself was a reject and a gangster.

      The only people who had no moral character and that would capitulate to the british empire were the ones who created the basic structure of Canada, and here we are 225 years later to observe their handy work.

      Then to keep their mess together as a country they let Quebec do all sorts of heinous things in contrast to their own constitution.

      What a clusterf*ck of a country. Just get rid of it.

      • Canadians should honestly let Americans step in and reconstruct their government for their own good.

        It would be over and done with and they’d be so much better off.

        my 2 cents.

  • This is BS … we just went through an issue here where an Ontario based electric car company can get its cars licenced for the roads of most U.S. states, but not for the roads of its home province.

    Just a beaurocratic mess, mixed with way too much corporate interest in something for which I cannot even understand the basis for its regulation. It’s like regulating knitting clubs (must be >8 members and all members must be from the same community.)

  • I’m suddenly ashamed to be a Canadian, ridiculous

    • Don’t be ashamed, just write to you MP and MPP (if in ontario). That’s how our government is supposed to work, not elect some people and complain about it until its time to repeat that process.

      • Yes! “just write to you MP and MPP” and be sure that you include a big fat check. That is the *only* way they will listen…. for a few seconds though

  • Are you Kidding me! I almost thought it was April 1st! These kinds of laws are exactly why I am leaving this country and going to Canada! Oh shot this is in Canada!

  • isnt this like that x-files episode…? where a scientist invents a water-powered car and the car companies try to take him out because it could put them out of business?

  • As a Canadian I am hanging my head in shame at this one. Sigh.

  • omg i must have broken the law too, so do most people I know. while the government tries to bring the idea of green city – by hanging posters of Dr. David Suzuki holding energy efficient light bulbs, smiling, everywhere in the city – it’s nonsense to keep this rule in the law for any longer. TTC is evil, as always.

  • Canadian and Ontarian who is just disgusted. This is ridiculous to the extreme.

  • If you actually read the decision and the quoted section of the Public Vehicles Act, you’ll see most of the quoted assertions are wrong:
    - carpooling includes one round trip per day, not just from home to work
    - there is no mention of crossing municipal boundaries as a limiting factor
    - there is no mention of having to use the same driver every day

    • @ Isaac – Those are based on previous decisions that the OHTB have ruled on regarding the legislation and the legislation itself. You need to look at the definition of a Carpool Vehicle. I have gathered all of the relevant documentation on this post you will see that these statement are in fact correct – http://save.pic...-documentation/.

      Cheers – Eric

      • Yes, I’ve read the legislation and it bears none of the first three points listed. The only supporting document on the site you referred to that originates from a government agency is a letter from the Ministry of Transport, where it does refer to crossing of municipal boundaries, but given that this letter is not legally binding and was written in the context of a complaint from an inter-metropolitan area bus company, I do not believe it can be considered a definitive interpretation. The decision issued November 5, 2008 by the Ontario Highway Transport Board made no ruling regarding the three points I listed.

        Please note I am not taking either side in this case, but unless a definitive reference can be given, it does not help anyone’s case to make claims that are not substantiated.

      • @ Isaac it is great you are so keen on legal issues. Perhaps you could review the decision and provide the rationale as to how we were shut down.

        Cheers – Eric

      • You weren’t shut down. The decision clearly states that to the extent you are providing actual car pooling and/or taxicab services, you can do that. It’s on page 14. In bold, no less: “PickupPal can continue to offer these genuine car pool and taxicab services.”

        Moreover, the OHTB supporting doc you have on your site says the PVA requires that anyone who is paid a fee for providing a public transportation service across municipal boundaries have an appropriate operating license. Aside from the fact that they were speaking in reference to a specific case with different facts, that only prohibits inter-city transport if (a) it’s for a fee, and (b) it’s a public transportation service. As the letter goes on to note, car pools are exempt, so long as they meet the statutory definition.

        So that means you CAN have an inter-city car pool.

        If your lawyers have been advising you in a manner consistent with your alarmist posts, you might want to seek new counsel.

      • @ Michael – If you can satisfy the definition of a carpool vehicle you can use PickupPal – however it is clear based on the legislation and previous rulings that you must satisfy the four test listed on our site. If you drive your neighbour to the airport and he buys you a cup of coffee – you have broken the law. You have to read the entire ruling and previous rulings before you can get an understanding of what one is up against. Bottom line is we got busted because one of our members picked someone up on their way from Toronto to Montreal, (336 miles), and charged 60 bucks to help cover the costs of the trip – the went across municipal boundaries and that meant it failed the test for carpooling.

        Cheers – Eric

      • Eric, it’d be great if you could show what supports your position rather than just stating it and telling me I have to accept it as fact.

        You don’t have to do that, but absent some reasoned explanation for your position (which seems utterly wrong to me based on what I’ve read — the decision and the prior OHTB ruling you pointed to), I don’t see why I would be expected to believe you.

        The Toronto to Montreal trip is discussed in the decision in some detail, but the ONLY point actually relied upon is the $60. And that was relied upon to establish that PickupPal facilitates transportation for fees (because absent fees, there cannot be a violation of the PVA).

      • @ Michael – sorry I think I misunderstood your comment. You are correct should you wish to give a ride to someone for free – then yes I believe you can still use PickupPal. I am unsure as to where you are going with all this? It has been somewhat of a long day and I don’t really get your angle. Perhaps you could send me an email if you want to have a chat – eric@pickuppal.com – and then we can get to the bottom of it. We are not trying to dupe anyone – all we know is that we can’t do what we have been doing in Ontario any longer. And what we are doing is providing a venue in which Drivers and Passengers can connect online so that they can carpool. I look forward to your email.

        Cheers – Eric

  • This law is ridiculous. But there are a lot of ridiculous laws in general, all over the world.

  • I live in Toronto and have seen one well-meaning rideshare service after another get shut down or forced out of Ontario by this stupid law: Allostop, Ecoride and now PickupPal.

    Sure, you can get carpooling from dodgy (and not-so-dodgy) providers on Craigslist and Facebook, but how safe is that? It makes no sense to drive this underground on the grounds that it equates to operating a commercial service.

  • hey buddy, don’t mess with our bus lobbies, guy!

  • hmm…does anyone have any suggestions on how we can support Pickup Pal or is that overly optimistic of me to think that we can affect change if we put our heads together?

  • Why are you guys surprised? — Canada approved Sharia law [to be applied in the Muslim community instead of Canadian law] and has an open door policy for terrorists immigrants.
    Don’t you remember that the Saudi terrorists that hit the NY City twin towers entered the US from Canada?

  • O! Canada. So buy more oil from other countries and burn in it up. Even Canada can be stupid sometimes !!!

  • My image of Canada is completely blown now.

  • Blame Canada!
    My god, I never thought my country would do such a dumbass thing. What a preposterous law!

  • Careful Mike. Canada has a pretty aggressive human rights commission that may find your post to be hate speech which subjects you to a trial in front of their tribunal of political appointees who are not bound by any oversight or rules requiring transparency.

  • Michael, both your article and all but one commenter failed to note that the Ontario government has spoken in support of ride sharing services, and introduced legislation to modernize the system to allow this kind of service.

    http://www.thes.../article/526516

    I would expect a little more effort in investigating the story and presenting a realistic picture rather than such a sensationalist approach.

    • There is a proposed amendment but it has not passed and we have been made aware that the bus lobby is actively trying to change the wording of the definition of Ridesharing. This struggle is far from over.

      Cheers – Eric

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