Yet another legal challenge to how ride-sharing company Uber does business. In "Boston Taxi Owners Association v. City of Boston," taxi owners in Boston contend the city will be authorizing two very different sets of rules for the taxi business, if the new regulations are allowed.
As things stand, the city requires taxi drivers to purchase expensive licenses and comply with a rigid laundry list of rules. If the new regulations are approved, Uber would be exempt from much of all that. Obviously, the dynamics of competition are changed since Uber does not have to bear that expensive regulatory burden. Here is the coverage in Bloomberg.
Across the U.S. and the globe the established taxi businesses are taking on Uber in lawsuits, regulations and through the media. Regarding the latter, posts on this blog and on Twitter referring to Uber receive heavy traffic and comments. Thought leader Peter Thiel observed that Uber is "ethically challenged."
However, the company has over $40 billion in capitalization. Can that keep it from dying from thousands of litigation and regulatory cuts?