A U-Need-A-Cab taxi pictured approaching Highway 17 in North Bay, Ont.Cory Wright/The Globe and Mail
The Ontario government plans to support the growth of rideshare apps such as Uber in a large northern swath of the province, including Muskoka and other popular cottage country regions, as part of a one-year pilot to expand private transportation options in areas currently controlled by taxi companies.
The pilot project, dubbed the Northern Rideshare Pilot, was conceived by the provincial Ministry of Transportation earlier this year, alongside the reinstatement of the Ontario Northlander Train service, which is scheduled to begin operating sometime this year.
The train will carry passengers on a 740-kilometre route between Toronto and Timmins, making a number of stops in towns in the Muskoka region. Part of the idea behind the rideshare pilot is to ease last-mile connectivity for tourists from train stations to private cottages and hotels.
Sara Smith, a full-time driver at U-Need-A-Cab, leaves the main office as she starts her shift in North Bay.Cory Wright/The Globe and Mail
For the most part, municipal bylaws do not expressly ban rideshares, but the dominance of the taxi industry in rural regions, coupled with the lack of population density, has left rideshare companies reluctant to expand outside urban hubs. The Ford government’s pilot program tied to the Northlander could change that equation by standardizing rideshare rules across participating municipalities.
A March 20 regulatory notice from the Transportation Ministry states that the pilot will come into effect in communities located “within 30km of the Northlander Passenger Train corridor,” with the exception of a small number of municipalities outside the boundary. A map from the government shows that the pilot will take place in areas as far north as Moosonee, near James Bay.
Taxi operators in Northern Ontario towns are frustrated at the province’s move to encourage rideshare apps, saying they were not adequately consulted, and that the prevalence of such apps will effectively decimate their businesses.
Ms. Smith gives change to a regular customer after dropping him off to do grocery shopping. The taxi she drives is the only wheelchair accessible method of transportation for many in North Bay.Cory Wright/The Globe and Mail
“We were only told about this a few weeks ago,” said Marc Andre Way, president of the Canadian Taxi Association. “Taxi drivers in the North really bank on tourist season in the summer months to make their living for the year. If Uber comes in, that all evaporates.”
Over the last decade, American rideshare companies, led by Uber, have established dominance in the private transportation market across urban centres in Canada. They’ve disrupted taxi companies and pushed cab drivers to work for rideshare apps to keep themselves afloat.
But in rural regions of the country, like in much of northern Ontario, taxis had long maintained control because of a variety of factors: specific safety and insurance standards required by municipal bylaws, familiarity with the terrain, and harsh weather conditions that disincentivize outsiders from seeking work further north.
Some of that, however, is changing. Between 2021 and 2025, the population of Northeastern Ontario – areas such as Sudbury, North Bay, Parry Sound, Muskoka and Nippissing – has grown substantially. This is in large part because of an influx of international students and temporary workers eager to obtain permanent residency through the Rural and Northern Immigration Pilot program. That has effectively meant growing demand for private transportation services, and an increase in those willing to take up jobs as rideshare or taxi drivers.
John Strang has been the owner of U-Need-A-Cab since 2006.Cory Wright/The Globe and Mail
A number of smaller, local rideshare apps servicing the north such as Uride emerged in this period, cutting into the taxi business.
“Uride devalued our plates,” said John Strang, the owner of U-Need-A-Cab, a taxi service operating in North Bay and surrounding areas. Taxi plates are issued by municipalities and derive their value from the number of cabs allowed in a vicinity. The growth of other private transportation providers effectively dilutes a taxi’s value.
Mr. Strang said that since Uride began operating in North Bay, he went from owning 40 plates to just 20. If larger rideshare apps successfully carve out a market in North Bay, he believes it will “kill” his business.
“Our company creates 65 full-time jobs in the region and we pay our drivers minimum wage. The resumption of the Northlander Train gave us great hope that we could grow our business, but now it appears the province is going to hand that to Uber,” he added.
“The rideshare pilot along the Northlander corridor will help improve connectivity for passengers as train service resumes,” said Julia Caslin, a Ministry of Transportation spokesperson, in an e-mail.
Ms. Caslin did not provide details on when the new rules will come into effect, but the regulatory notice said the start of the pilot hinges on the Northlander Train’s operations. The province did not respond to a specific question about when exactly the train will resume service.
In an e-mail statement, Uber spokesperson Keerthana Rang said the company welcomed the ridesharing pilot tied to the relaunch of the Northlander. Ms. Rang also said that the company consistently sees an interest from people across Ontario who want to earn an extra income on their own schedule.
Mr. Strang says he is frustrated by the lack of oversight and consultation with the taxi industry over plans to allow more rideshare apps to operate in North Bay.Cory Wright/The Globe and Mail
Mr. Strang said he regularly gets job applications from recent international graduates from North Bay’s Canadore College, which saw a surge of international student enrolment between 2022 and 2024. But he’s often unable to hire them because municipal bylaws state that prospective taxi drivers have to have three years of commercial driving experience and five years holding car insurance.
Many of the applicants who approach him do not have taxi experience, but they would be eligible to work for rideshare apps. “It is an uneven playing field,” Mr. Strang said.
In most municipalities, including Toronto, rideshare companies are not subject to the same bylaws around safety, insurance and background checks as taxis.
In Bracebridge, Ont., Suman Sathi, the owner of Muskoka Taxi, said she was doubtful that Uber or other rideshare apps will be able to successfully penetrate the market – even with the Northlander train resuming and the potential increase in foot traffic from train stations.
“I would not advise anyone not from the region to attempt to drive these roads. These are dark, rural roads, and the weather is very harsh. You need to know it, even in the summer months.”