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Judge dismisses taxi owners' lawsuit over ride-hailing regulations

Uber called it a "victory for the thousands" of Uber drivers and millions of riders who use the service.

Reuters

A lawsuit filed by Boston taxi owners against the state was dismissed by a federal judge earlier this week in a move that Uber hails as "a victory."

The Boston Taxi Owner's Association claimed that the Commonwealth's new lawregulating ride-hailing services such as Uber and Lyftdisadvantaged cab owners.

U.S. District Judge Nathaniel Gorton denied the association's move for an injunction of the law, writing in his order that,"plaintiffs have not alleged that the Commonwealth has revoked, suspended or impeded its ability to use its [taxi] medallions."

The Massachusetts law established different regulations fortransportation network companies, or TNCs, such as Uber and Lyft, than for taxis. The association's lawsuit claimed that was unconstitutional and harmful to their business.

The Boston Taxi Owner's Associations'"sole claim is that the loss of market exclusivity caused by the enactment of the new TNCstatute has diminished the value of their medallions," Gorton wrote.

But the taxi owners have "no rights to market exclusivity," he continued.

“This ruling is a victory for the thousands of drivers who partner with Uber to earn flexible income and millions of riders who use Uber as an affordable, reliable way to move around the Commonwealth," a spokesperson for Uber said.

The taxi owners had filed this lawsuit in September;more than 30 other Boston-area cab companiesfiled a similar lawsuit inDecember.

A phone message left with the attorney for the taxi association was not immediately returned.

 

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