The Goal

Position Canada as the friendliest place in the world to build new transportation technologies by rapidly and safely permitting new modes of transportation like micromobility solutions such as electric scooters and bikes, drones, and autonomous vehicles at the federal level.

Summary

Around the world, companies are developing groundbreaking transportation technology that promise to make life easier, cleaner, safer, and more efficient. Drones that can deliver life-saving medical supplies in minutes, autonomous vehicles that will reduce traffic accidents, and even flying cars that can cut commute times in half. This isn’t science fiction—these things are already being built.

But in Canada, these innovations are being held back by a patchwork of outdated, slow-moving regulations. Take Tiny Mile, a Toronto startup that developed self-driving robots for food delivery. In 2021, the city effectively banned these robots, citing concerns about accessibility. Even as other cities in the country have allowed experimentation to continue. As a result, Tiny Mile was forced to relocate to the U.S., taking their jobs and innovation with them. Instead of creating solutions here in Canada—solutions that could save us time, money, and improve access to essential services—we’re losing out to other countries. 

Canada’s fragmented transportation governance is stifling our economy and holding back progress. But with the right changes we could make it one of our global competitive advantages. By centralizing authority under Transport Canada we could allow self-driving robots to be anywhere in Canada, allowing companies to innovate and experiment without worry of some smaller governing authority blocking them. We can build a system that’s faster, smarter, and ready to support the technologies of tomorrow. If we do this right, we will make Canada the obvious destination for anyone wanting to build in transportation innovation.

Current Problem

Municipal control over emerging technologies, combined with short-sighted resistance to change, has created unnecessary delays, inconsistency, and a hostile environment for innovation.

• Fragmented Governance : Municipalities currently control some areas of transportation technology, leading to slow approvals by groups with limited technical expertise. This prevents solutions from scaling effectively. For example, British Columbia recently banned advanced autonomous vehicles, while other provinces are open to experimentation.

• Missed Opportunities : Inconsistent rules for innovations like delivery robots and electric scooters are driving businesses away. While almost all cities around the GTA like Mississauga and Hamilton have embraced e-scooters, Toronto continues to ban them.  Across the country this patchwork approach continues as Calgary, Edmonton, Vancouver and Ottawa have e-scooter programs, and Montreal does not, citing a competitive city-owned bike share program which could also be delivered by the private sector. This causes companies to waste time and spend resources seeking city-by-city approvals, spending capital needlessly and stifling their ability to offer people options to move people around cities more safely and more efficiently.

• Economic Drag : Outdated infrastructure raises costs, slows GDP growth, and leaves Canada trailing behind global competitors. Autonomous vehicles are quickly becoming an essential part of everyday commuting in Phoenix, Atlanta, and San Francisco. In China companies have started ferrying passengers in electric, unmanned, flying cars. Rather than encouraging builders to create novel solutions here Canada regulates them into submission.

Real-World Solutions

We don’t need to guess how to solve this—we already have the blueprint. Successful examples from Canada’s own history and leading global economies show that centralized, innovation-friendly regulation works:

• Canada’s Telecommunications Success : Recognizing the urgency to construct national communications networks, today the Federal government sets overarching policies and safety standards for how cell phone towers can be built that supersede municipal jurisdiction. Municipalities can influence tower placement, but they cannot outright prevent installations; they can only guide where these structures are located within their jurisdictions. This model encouraged innovation and allowed for rapid build out of our telecoms infrastructure. This is the model we should adopt for new transportation technology.

• Proven Regulatory Models: Canada already centralizes safety and operational oversight in industries where national consistency is essential—such as aviation and maritime. Airlines and shipping companies operate under clear federal rules that ensure safety, efficiency, and innovation without being subject to conflicting municipal regulations. By applying this model to new transportation technologies, we can create a predictable, innovation-friendly environment while maintaining the highest safety standards.

• Global Leadership Models : Countries like Germany, Japan, and China have created centralized frameworks that allow them to introduce and encourage novel transportation technology including autonomous mobility systems throughout the whole country while allowing for local engagement.

Why This Matters

Mobility is essential to Canada’s growth. To create the most thriving cities we need a modern, future-proof transportation system. If we fail to act, we’ll lose out on economic growth, technological leadership, and sustainability gains. The choice is clear: move boldly forward, or be left behind.

What Needs To Be Done

We propose the following changes:

• One Standard, One Nation: Right now, different cities have different rules, which slows down innovation. We want to shift transportation regulation to Transport Canada, creating a single, clear set of rules for the entire country. Municipalities can take decisions on how to introduce these technologies but not whether they will be introduced. This means we will no longer have some cities banning electric scooters while others allow them, we will have one consistent policy.

• Clear Rules for Emerging Technologies: We will introduce simple, streamlined national regulations for all new types of transportation, such as electric scooters, drones, and autonomous vehicles with the aim of being the most welcoming market for innovation in the world. This will allow transportation companies everywhere to understand what they need to do to operate in Canada and will give them the confidence they can expand in our market. If we don’t yet have a clear set of rules for a technology a company can ask for a review and receive a clear answer on whether they can operate within three months.

• Connecting Investment to Progress: We will link federal infrastructure funding to compliance with national transportation policies. This means cities that follow national innovation standards will receive financial support for transportation projects.

• Updating Outdated Laws: We will modernize old transportation laws, such as the Transportation of Dangerous Goods Act, to ensure they reflect 21st-century technologies, making it easier to introduce safer, smarter transportation solutions.

What This Means For The Future

In four years, Canada will:

• Be the best place in the world to build and test new transportation technology.
• Make travel faster and cheaper with a smart, modern transportation system.
• Grow the economy by attracting top talent and investment in transportation innovation.
• Lead the world in clean, high-tech transportation solutions that reduce pollution and improve daily life.
• Create the safest, most efficient, and most forward-thinking transportation network, making it easier for people and goods to move within our cities, between provinces, and across the country.

Common Questions

• What about local control? Cities will still manage local operations and placement to some extent but won’t have the power to block transformative technologies. National leadership will bring predictability while respecting municipal needs.
• Is this safe? Yes. Federal oversight will ensure the highest safety standards—just as it does in aviation and maritime industries. By making use of Canada’s top transportation experts we will be able to improve safety over decisions being made by municipalities without experience.
• How will this improve daily life? Faster commutes, lower costs, and cutting-edge more sustainable transportation technologies will improve quality of life for all Canadians and reduce reliance on one passenger motor vehicles.
• Will any and all transportation technologies be approved?

Conclusion

Canada has a choice: lead the world in transportation innovation or fall behind. Right now, outdated rules are slowing us down, driving talent and investment elsewhere. But we can change that. By creating clear national regulations, supporting safe experimentation, and making Canada the best place to build new transportation technology, we can unlock incredible opportunities. Imagine faster commutes, cleaner cities, and a booming economy fueled by cutting-edge innovation. The future is ours to build—let’s make Canada the global leader in transportation technology.