B.C. court squelches Vancouver bylaw that forced ride-hailing firms to pay fees
The B.C. Supreme Court has invalidated a City of Vancouver bylaw that imposed a fee on ride-hailing companies working on city streets during peak hours.
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Uber Canada took the city to court over the bylaw, saying it overstepped a municipal government's power by regulating 'transportation network services.'
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The bylaw banned ride-hailing vehicles from picking up or dropping off passengers in the core of Vancouver between 7 a.m. and 10 p.m. unless they had a 'congestion and curbside management permit.'
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The provincial government made the Passenger Transportation Board the 'centralized authority' to regulate ride-hailing in 2019, but the city later imposed the bylaw, which Uber challenged in B.C. Supreme Court.
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The court decision says the province made the changes to eliminate regulatory overlap, which the transportation minister at the time said had 'plagued the passenger-directed vehicle industry for years.'
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The ruling says there is no 'rational pathway' for the city to claim it didn't intend to regulate the number of ride sharing vehicles operating in Vancouver with the bylaw because its stated intention was to reduce traffic congestion.
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'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,' the ruling says. 'Therefore, the bylaw is invalid and the decision to adopt it was unreasonable.'
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The city said in a statement that it 'respects the judicial process and acknowledges the B.C. Supreme Court's decision.'
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Gildan to buy Hanesbrands for US$2.2 billion to expand basic apparel business
Signage is seen at Gildan Activewear Inc.'s annual meeting in Montreal, Tuesday, May 28, 2024. THE CANADIAN PRESS/Christinne Muschi Gildan Activewear has agreed to buy U.S. undergarments maker Hanesbrands for US$2.2 billion in cash and stock, the companies said on Wednesday, as the Canadian firm looks to expand its foothold in basic apparel. Gildan, whose brands include Anvil, Gildan and Gold Toe, will pay about $6 per Hanesbrands share, representing a 24 per cent premium to Monday's close and implying an equity value of $2.2 billion. Shares of Hanesbrands fell 2.4 per cent in premarket trading after surging as much as 40 per cent a day earlier, when news of the buyout first emerged. The deal combines Hanesbrands' branded retail foothold through its popular brands such as Hanes, Bonds, Maidenform and Playtex with Gildan's strong wholesale market presence across the United States, Canada, Latin America, Asia-Pacific and Europe. 'The combination of these two large manufacturers... makes sense on paper,' Citigroup analysts said after news of the takeover, adding that Gildan could manage Hanesbrands' business more efficiently, given its expertise in low-cost manufacturing. The Financial Times first reported on the potential deal on Tuesday, followed by other media outlets including Reuters. The deal caps a turbulent chapter for Hanesbrands that was marked by years of underinvestment, heavy debt and a string of acquisitions that produced mixed results since its spinoff from conglomerate Sara Lee in 2006. Hanesbrands' sales have plunged over the last three years amid stiff competition in the athleisure market and cooling demand, but cost-reduction efforts and supply-chain improvements lifted its margins in the past year. In a move to focus on its core categories, Hanesbrands has steadily offloaded assets, including selling its sportswear brand Champion to Authentic Brands in a $1.2 billion deal last year. Gildan said it intends to initiate a review of strategic alternatives for Hanesbrands Australia, which could include a sale or other transaction, after the deal closes. The transaction is expected to close in late 2025 or early 2026 and is likely to be immediately accretive to adjusted profit per share. (Reporting by Savyata Mishra in Bengaluru; Editing by Pooja Desai)
