VANCOUVER — The B.C. Supreme Court has ruled against a bylaw from the City of Vancouver that imposed fees on ride-hailing companies during peak hours. The court's decision came after Uber Canada challenged the bylaw, arguing that it exceeded the city's authority to regulate transportation network services.

The controversial bylaw prohibited ride-hailing vehicles from picking up or dropping off passengers in the Metro Vancouver core from 7 a.m. to 10 p.m. unless they obtained a “congestion and curbside management permit.” This regulation was enacted despite the provincial government designating the Passenger Transportation Board as the primary authority for regulating ride-hailing services in 2019.

The court's ruling highlighted that the provincial government aimed to eliminate regulatory overlap that had previously complicated the passenger-directed vehicle industry. The transportation minister at the time noted that this overlap had been a significant issue for years.

The court found that the city could not reasonably claim it did not intend to regulate the number of ride-sharing vehicles operating in Vancouver, as the bylaw's stated goal was to alleviate traffic congestion. The ruling stated, “Given the specifics of this particular bylaw, it is unreasonable for the city to decide it was authorized to invoke its powers to regulate stopping on city streets to defeat the purpose and text of its governing legislation.”

As a result, the court declared the bylaw invalid, stating that the decision to adopt it was unreasonable. In response, the City of Vancouver acknowledged the court's decision and stated it would take time to consider its next steps. Uber Canada did not provide immediate comments regarding the ruling.