Edmonton Taxi Companies Accused Uber For Price-Fixing In $150M Lawsuit

Cab companies have filed a lawsuit against Uber in Edmonton, Canada.

Uber’s rivals have troubled it recently. Uber news revealed that a number of companies, including Alberta Co-op Taxi Lines, Greater Edmonton Taxi services and 24-7 Taxi Line, have petitioned against it. They have alleged that the ride-sharing company has intentionally violated Edmonton’s bylaws governing hired vehicles, as well as two other regulations, encompassing Federal Competition Act and Traffic Safety Act.

The lawsuit has accused it of permitting its driving partners to drive automobiles-for-hire without being properly authorized, despite being clearly told that they were violating the Edmonton’s regulation. It also referred to state laws claiming that automobiles-for-hire must be equipped with a meter allowed by the municipal government, and should be listed as a taxi broker. The petition further claims that the transportation company has also contrived to breach Section 45 of the Competition Act by offering its services for fixed prices.

According to Uber news today, taxi companies claimed in the suit that Uber is recognized as a rival to its drivers, because it, not the independent operators, determine the charges of fares. The petition states that the company “has unlawfully conspired with the Defendant drivers to fix prices of (vehicle-for-hire) services” in Edmonton.

Uber technologies informed that the ride-sharing platform has long stated that its driving partners are not full workers, but should be identified as independent contractors. If the petition claims that if the case is true, then the company is still fixing prices charged by competing drivers.

The suit demanded $150,000,000 in general damages suffered because of the financial harm caused by the modern transporter’s refusal to comply with city bylaws. In addition to it demands, an action is sought to cease the organization and its employees from violating bylaws.

Uber has not filed a statement to defend itself. It refused to comment on the petition as well. Edmonton might turn into the first Canadian city to legitimatize the facility; it has been anticipated that the city councilors would deliberate upon a bylaw this week that would govern the taxi services.

It is probable that the Californian transporter’s opponents in different parts of the world would appreciate the new development. Experts have claimed that the legal action would damage it.

Uber’s executives should contest the legal battle in the most effective manner to survive in the Canadian territory. It should also justify its actions to maintain its credibility in the region and safeguard its interest to continue business.