A group of 13 Connecticut taxi and livery companies and the council that represents them filed suit Wednesday against transportation-for-hire services Uber and Lyft, accusing them of violating state and federal laws and deceiving customers.
The complaint argues that taxi and livery companies, which provide pre-arranged transportation, have invested significant capital and resources to comply with a slate of regulations and laws regarding consumer protection and safety, while Uber and Lyft have not.
The two companies, which are both based in San Francisco, claim they are livery services, which exempts them from some rules, but the cab coalition argues that “spur-of-the-moment assignment” and “virtual hails” through mobile apps qualify the companies as taxis.
The suit also alleges that Uber and Lyft “prey parasitically” on cab companies by recruiting their drivers, and convincing them to unlawfully switch from their state-approved fare meters to dispatching and billing system.
Uber and Lyft began operating in Connecticut in April.
Each has been growing with the help of venture capital backing. Each has had disputes with regulators in a number of locations, including New York, California and Vancouver, Canada.
The Connecticut Insurance Department issued a warning on May 6 that Uber and Lyft drivers’ insurance policies may have coverage gaps.
The suit demands unspecified damages, as well as a restraining order and injunction against the companies.
Chelsea Wilson, a spokeswoman for Lyft, said in an email Thursday afternoon that the lawsuit is without merit and that the company hopes to resolve it quickly.
“Lyft fills an economic and transportation need for both drivers and passengers in Fairfield County, and we will continue to provide safe, reliable rides that benefit the local community and further public safety,” she said.
Kaitlin Durkosh, a spokeswoman for Uber, said in an email Friday afternoon that the lawsuit is baseless and “just another example of taxi company owners who don’t want to compete and who would rather limit consumer choice and driver opportunity.”
“Big taxi’s money might be better spent expanding economic opportunity for their drivers – who start the week hundreds of dollars in the hole just to rent their cab – and improving customer service for Connecticut residents and visitors,” she wrote.
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