Uber Now Delivers

First presented at an MB Transportation Law Seminar

Uber, the cashless, mobile app run ride-sharing company, has been pushing the limits of the traditional taxi model. However, this has not stopped the company from continuously moving forward. Its most recent venture is UberCargo, a new program that ventures into the logistics business. The service allows users to call a van to transport large items for moving or for delivery purposes. UberCargo has only launched in Hong Kong, and at present seems to be geared mainly to business users for their logistical needs.

This move by UberCargo is not a new phenomenon. Particularly, the Hong Kong market has seen the success of peer-to-peer cargo delivery services of GoGoVan1 and Lalamove2. Outside of Hong Kong, Cargomatic has been connecting carriers and shippers in the areas of California and New York. Unlike Uber, Cargomatic's website has been upfront about their insurance policy coverage and liability limits.3

While it is not clear whether UberCargo will be coming to Toronto anytime soon, the rise of peer-to-peer cargo services is the way of the future. Much like the gap in regulation for UberX, there too appears to be a potential gap in Ontario's regulation for UberCargo-type services. Should UberCargo or like services arrive in Ontario, it is questionable whether they would fall within the carrier regulatory scheme currently in place.

The Regulation of the Carriage of Goods in Ontario

Typically, when a carrier is being contracted for the carriage of goods, a bill of lading or other document evidencing the contract for carriage is issued. This document denotes the parties involved and the content and terms of their contract. Historically, and still the case in common law, the liability of cargo carriers is onerous. If the cargo is damaged while in transit, carriers are held liable for all such damage or loss even where no negligence is demonstrated. Carriers may be excused from liability in narrow circumstances of acts of God, riots, strikes, latent defects, quarantines and war.

Because of this, legislation has been enacted by almost all provinces to provide protections to carriers and mitigate the effects of the common law arduous liability on the industry.

Specifically, the provinces created "Uniform Conditions of Carriage", to be attached to the bill of lading or contract of carriage.

In Ontario, the Highway Traffic Act (HTA)4 is the controlling legislation regarding commercial motor vehicles...

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