Connecticut taxi companies are unhappy with the
popular start-up companies Uber and Lyft. Last week, fifteen taxicab companies
asked the District Court
for the District of Connecticut for an injunction
to stop these companies from operating in Connecticut. Taxicab companies in
other states have initiated similar lawsuits.
Uber and Lyft, both internet start-up companies, are
new to Connecticut. The companies allow customers to summon rides through
smartphone applications. Rides with Uber can be paid for with credit cards that
are connected to the smartphone application. Lyft similarly accepts only credit
card payments via the app but allows riders in some cities to instead make a
“donation” in the amount the customer feels is appropriate for the services
rendered.
The Connecticut taxicab companies argue that Uber
and Lyft violate state
regulations and other federal laws. The taxi
companies also argue that Uber and Lyft deceive customers about insurance
coverage, the safety of Uber and Lyft vehicles and the fares that customers are
charged.
They further claim that both companies’ practices
result in discrimination. Uber and Lyft drivers have discretion in choosing who
to drive and there are no requirements that Uber and Lyft vehicles be handicap
accessible. Finally, because Uber and Lyft accept only credit card payments,
those without credits cannot utilize their services.
It will be interesting to see whether the court
grants the injunction, which would effectively shut down increasingly popular
services or whether the court will permit Uber and Lyft to continue to operate
in Connecticut, which would effectively give Connecticut taxicab companies some
stiff competition.
