Uber Dodges Lawsuit Filed by State Taxi Companies

Josh WolfordBusiness

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Uber is, has, and will continue to face lawsuits in states across the country and countries across the world. Traditional taxi companies are less than thrilled with Uber (and other on-demand ride companies) over its business model – mainly the one that allows Uber drivers to operate without obtaining the same sort of permits as they do.

One such lawsuit has gone in Uber's favor.

Earlier this year, 15 cab companies in Connecticut sued Uber in an attempt to block it from operating in the state. The cab companies also sued rival Lyft.

Now, a US District judge has dismissed the lawsuit

It's a big win for Uber. From Reuters:

U.S. District Judge Alvin Thompson in Hartford said the plaintiffs failed to show that Uber competed unfairly, tried to lure away their drivers, or misrepresented its services, fares and drivers' insurance coverage to passengers.

 

The judge also rejected the plaintiffs' argument that Uber should follow the same licensing and safety regulations that they are required by law to observe.

 

He said this was because it was only recently that Connecticut's legislature even asked the state's Department of Transportation to consider whether Uber should be covered.

Uber's argument in the lawsuit is that it's merely a technology company, which owns no cars and employs no drivers. It's just an app that allows those who need a ride to connect to those who wish to provide one.

It's the same argument Uber makes in disputes over whether its drivers are employees or contractors.

“Because they are not regulated as we are, their cars are not properly inspected regularly to ensure they are maintained in safe operating condition. Their drivers have very little training, if any, do not possess the certification and driver’s licenses ours must have, nor are they subject to the rigorous criminal background checks we perform on our drivers," said the lead plaintiff in the Connecticut case.

Uber is pleased with the ruling, saying it allows the people of Connecticut to continue to receive the "economic and transportation benefits" its service provides.

Josh Wolford
Josh Wolford is a writer for WebProNews. He likes beer, Japanese food, and movies that make him feel weird afterward. Mostly beer. Follow him on Twitter: @joshgwolf Instagram: @joshgwolf Google+: Joshua Wolford StumbleUpon: joshgwolf