The Government has the authority to step in and prevent “illegal” rideshare services from operating on the island, the Bermuda Taxi Owners and Operators Association has claimed.

Last night, a government spokeswoman responded: “The best way to prevent unregulated rideshare apps from trying to enter the Bermuda market is to fix the transportation challenges faced by our visitors and residents during peak times”.

She said consultation was ongoing to introduce rideshare regulations that “will not compete with the taxi industry”, but would run in tandem with local operators.

The proposed system would give taxi drivers priority over any ridesharing operators taking to the island’s roads.

Last month, the Government said it was seeking legal advice over the operation of ride-sharing app Island: GO!, which claimed to have launched in Bermuda.

In a statement, the BTOA said it strongly disagreed with a recent stance taken by David Burt, the Premier, that there was little the Government could do to block new services such as Island: GO! from operating on the island in the absence of regulations.

Mr Burt’s interest in the taxi industry are a matter of parliamentary record. His page on the House of Assembly site acknowledges that he is a cofounder of Hitch, an app-based taxi firm, and that he was a lead developer of the service’s mobile app.

In an interview on Tuesday with Bermuda Broadcasting, Mr Burt said rideshare proposals put forward by Wayne Furbert, the Minister of Transport, were ”not going to compete” with the taxi industry but complement it.

Mr Burt told the broadcaster he was not familiar with Island: GO!

“But I can only assume that it might be trying to undercut and undercharge what current taxis are charging and that is what the fear of the taxi industry is and should rightfully be,” he said.

He added: “The Government of Bermuda has put forward proposals that are still being consulted on regarding a ridesharing structure in Bermuda that will complement the taxi industry.”

However, the BTOA responded that it “strongly disagrees” with Mr Burt’s stance.

“The Premier has the power to halt any business that does not operate within the regulation and legislation his office upholds and administers,” a spokesman for the BTOA said.

“There is no need to wait for new laws to be in place when existing regulations are already being violated.”

He said that Mr Burt’s comments overlooked key issues such as insurance coverage and financial compliance, which the BTOA insisted remained unresolved in the case of unregulated ridesharing apps such as Island: GO!

The spokesman said insurance policies did not cover private cars for transporting passengers for hire.

He said it would leave passengers “exposed”, with no insurance protection in the event of an accident while using the rideshare apps.

“Additionally, the financial infrastructure supporting these apps is not compliant with Bermuda’s financial laws, creating further risk for both drivers and passengers,” the spokesman added.

The BTOA said it also disagreed with the Premier’s claim that ridesharing apps undercut the taxi industry.

It explained: “The reality is that the cost of rides via these illegal ridesharing apps is often higher than traditional taxis due to unregulated service fees, peak time surcharges, booking fees and inflated journey rates.”

It added: “None of these additional charges are included when customers use a traditional metered taxi.”

The association said there were serious risks to passengers, drivers and Bermuda’s reputation as a financial jurisdiction.

“The Premier needs to act now, using the full weight of his office to enforce the law and protect the public.”

The body said it was advocating for a regulated ridesharing system that worked in harmony with the existing taxi industry while ensuring all services complied with the island’s laws, regulations and insurance requirements.

A government spokeswoman told The Royal Gazette: “We do not want apps operating in Bermuda where they undercut and undercharge the taxi industry, as has been seen in other places around the world.

“The Government's proposed ridesharing programme is not meant to replace the taxi industry, but to complement and enhance it.

“The dispatching system for regulated ridesharing in Bermuda will prioritise taxis over ridesharing operators, ensuring that our existing taxi operators will still be the preferred option to serve the public.”

She said there were “no apps approved by the ministry to facilitate the operation of private motor cars for hire or reward”.

“This means that any private car operating in such a manner contravenes Section 26 of the Motor Car Act 1951. This is a reminder for local private car drivers who are considering driving for Island: Go!

“It is unlawful for private motor cars to carry passengers for hire or reward, whether by way of app or any other means. Only vehicles with valid public-service vehicle permits can legally carry passengers for hire and reward.”

She added: “To operate a private motor car for hire or reward may nullify your insurance policy. The public's co-operation is essential in maintaining the integrity and safety of Bermuda's transport services.”