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Uber Faces $410 Million Canadian Class Action Suit
farrellj writes: A class action suit has been filed by the Taxi and Limo drivers and owners in the Province of Ontario in Canada against Uber, demanding CAN$400 million in compensatory damages, $10 million in punitive damages. They claim Uber is violating the Ontario Highway Traffic Act that covers taxis and limos, and has caused them to lose money. They also seek an injunction against Uber operating in Ontario. "This protectionist suit is without merit," Uber said in a statement. "As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services."
Was it someone speaking English as a second language or some kid on a cell phone?
Uber is not a black person. A company should NEVER get to determine what is a good law and what is a bad law. Civil Disobedience is for individuals not companies, the last thing this world needs is companies getting to decide which laws are good and which are bad, especially when the execs making such decisions can be internationally based and out of reach of the consequences.
This is one of the more insightful bits of investigative journalism I've read in a long time:
http://www.theglobeandmail.com...
Some quotes:
[...] one of the most compelling investigative projects ... in the Toronto taxicabs that I rode in so often on my way to assignments. I discovered that almost none of Torontoâ(TM)s city-issued taxi licenses â" known as âoeplatesâ â" were in the hands of working cab drivers. Instead, they were held by people who made others pay to use them.
[Taxi] plate holders included an airline pilot, a dentist, investors who lived in Florida and Israel, and estates that had inherited the licenses after the holder died. The problems created by the plate system were mind-boggling. At least 30 per cent of the industryâ(TM)s revenues went to people who did nothing but milk income from their licenses.
So the Toronto Taxi system is a cesspool of entitled leeches, and Uber â" which nonetheless seems to have a shady side to it â" seems to be doing some overdue jostling. Hence the ridiculous class action.
If corporations are people and money is speech, then Uber could be a modern day Martin Luther King.
We also have laws against just randomly shooting your neighbors. Either you respect that some laws exist for good reasons or you chuck them all and live in anarchy. A corporation is not a person. A corporation only wants laws relaxed so they can maximize profits, not because of any moral reason.
The truth is that the laws over taxi services have been built over decades to try to balance the needs of businesses with protection of the customer. Uber only wants to skirt those laws because meeting them would cut into their profits, not because of some great liberation of the people.
I swear, some of you capitalism apologists won't be happy until corporations are back to selling toys with razor sharp edges that catch fire as soon as they're unpacked, food "bulked up" with rat droppings and rope, whatever it takes as long as profits aren't harmed.
Uber isn't paying Ontario taxes. Their entire "distinct business model" will quickly fall apart the moment they become forced to pay things like sales taxes.
It's not just the taxes themselves. Around here, paying taxes means you're regulated, and being regulated means that the government is responsible for the public safety surrounding you.
So the moment Uber gets forced to pay sales taxes, is the moment that they are forced to control their drivers, is the moment their drivers become employees, is the moment they get to pay employment taxes, is the moment they get to safety-certify the vehicles, is the moment their "distinct business model" needs to raise prices to cover all of the added expense.
That will take them half-way to taxi fares. What people don't know is that the big expensive taxi licence isn't simply a money-grab. It's specifically to reduce the number of taxis. Around here, we regulate in order to reduce competition. With a tenth the population of the USA, and even lower population density, there simply isn't enough business out there to support the number of taxis that would set out to try.
Unlike in the USA, where too much competition would eventually result in a natural balance, around here it results in an entire industry going belly-up -- i.e. no taxis at all.
So, the moment that Uber is large enough to compete in the full market, that market won't be big enough to support Uber, taxis, and the next new Uber-like competitor that would be able to destroy Uber instantly simply because they will be newer. And as a result of that market-is-too-small-to-support-the-low-cost-of-entry, we artificially raise the cost-of-entry with a nice expensive licence.
But hey, electric cars are cheaper because they don't pay gas prices...which are most road taxes. Do you honestly think that in a world of everyone-drives-an-electric-vehicle that there won't be road taxes?
Welcome to new "distinct business models". They work only while they are new. That's the distinct part.