Three taxi companies in Edmonton have filed a lawsuit against Uber Canada, alleging that the ride-sharing service skirts insurance law, engages in price-fixing and operates outside of the city’s bylaws, according to CBC News.
Greater Edmonton Taxi Services, Alberta Co-op Taxi Lines and 24-7 Taxi Line are taking action against the tech company days after city officials proposed a bylaw seeking to regulate its service by bringing it into insurance and licensing compliance.
Even though Bylaw 17400 would require UberX vehicles to maintain “a valid commercial insurance policy or other valid insurance policy that meets all applicable requirements for driving a vehicle for hire,” the taxi operators seek damages that have already been caused by Uber’s negligent behavior.
“Uber wants to operate in a completely unregulated manner, without even obtaining the commercial insurance required to protect the public,” the plaintiffs said in a news release.
The taxi companies also contend that Uber’s business model is based upon price fixing, since it determines the prices for its drivers’ fares, precluding them from negotiation even though they are “independent contractors” and not “employees” of the organization. The group thus alleges that Uber “unlawfully conspired with the Defendant Drivers to fix prices of (vehicle-for-hire) services.”
This is not the first multimillion dollar lawsuit to be filed against Uber Canada, as a similar $410 million class-action suit is pending in the Ontario Superior Court of Justice.
