Regardless of why someone chooses to hail a cab rather than drive, providing such service is a competitive business. There are regulations that govern such companies. One particular cab service says Uber has side-stepped many local regulations, some of which are quite stringent.
The company also claims Uber charges lower rates, and that because its overhead is also lower (but it has more vehicles), it is causing other companies like itself to lose money. Traditional cab service companies are required to purchase workers’ compensation insurance for all drivers. There are also minimums set for required liability insurance, as well as other regulations that Uber apparently has not been made to follow.
Any dishonest or fraudulent trade or commerce may be considered unfair competition, especially when another company suffers detriment to its bottom line because of such practices. Time will tell how the California cab company versus Uber situation turns out in court. In the meantime, anyone in Louisiana facing similar problems may seek guidance from a business and commercial law attorney. A highly experienced attorney possesses clear understanding of the law and can help a business owner rectify unfair competition problems by applying whatever option best suits his or her immediate needs and overall business goals.
Source: courthousenews.com, “OC Cabbies May Have Competition Case Against Uber“, Maria Dinzeo, April 3, 2017