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Uber says the new livery transport bylaw will be too cost-prohibitive for the company to operate in Calgary.

Feb. 26, 2016 | CREBNow

Uber says it's out after council decision

Company says Calgary too cost-prohibitive

Calgary city council voted Monday 14-1 in favour of new ride-sharing regulations that will require more rigorous licensing, background checks and inspections.

Yet U.S.-based Uber said the model is cost prohibitive and that the draft bylaw will run the company out of Calgary.

"It's a really unfortunate day for riders and drivers in Calgary," Ramit Kar, Uber's general manager for Alberta, told reporters. "For riders, there's no longer going to be an option that they've been asking for to get transported around the city."

In a statement on Twitter Monday night, the company added that, "it's unfortunate to see #yyccc vote for regulations that prevent the return of ridesharing to Calgary. "We'll continue to advocate for solutions that create jobs for drivers & affordable transportation options for the public. " The new livery transport bylaw, which comes into effect April 4, 2016, will have private-for-hire drivers pay a $220 annual licensing fee, as well as a $30 criminal history check and an annual vehicle inspection fee.

The inspections were reduced from twice a year, as suggested in the draft bylaw. Council said only vehicles that clock more than 50,000 kilometres would be subjected to additional inspections.

Edmonton recently became the first city in Canada to pass laws to allow Uber to legally operate, joining 70 other major cities worldwide.

Under Edmonton's new rules, Uber will pay the city an annual fee of $50,000, plus $.06 per trip to cover regulations and costs.

Check out the following video of Calgary Mayor Naheed Nenshi speaking with reporters on the new bylaw.