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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."

33 of 247 comments (clear)

  1. We're a tech company... by Daemonik · · Score: 4, Funny

    ..we don't have to obey those pesky laws! Our founders are all Libertarians/Randian Objectivists, laws are for poor people! Haven't you read Fountainhead?? Arblegarblewarble!!!

    1. Re:We're a tech company... by easyTree · · Score: 2

      laws are for poor people

      I can't understand why I'm sensing an element of sarcasm with respect to something that is clearly accurate.

    2. Re:We're a tech company... by TsuruchiBrian · · Score: 3, Interesting

      There was a time when it was illegal for black people to drink from the same drinking fountains as white people. I am not equating these 2 laws. I am only pointing out that sometimes laws are not justified, and disobeying laws isn't always immoral or harmful. In fact it can occasionally be helpful in driving progressive changes to poorly thought out and/or obeselete and/or unfair laws. Surely you do not completely discount civil disobedience as a tactic with no redeeming social value, even if you are not specifically a proponent of Uber.

    3. Re:We're a tech company... by bloodhawk · · Score: 3, Insightful

      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.

    4. Re:We're a tech company... by h33t+l4x0r · · Score: 4, Insightful

      If corporations are people and money is speech, then Uber could be a modern day Martin Luther King.

    5. Re:We're a tech company... by Daemonik · · Score: 4, Insightful

      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.

    6. Re:We're a tech company... by drinkypoo · · Score: 2, Informative

      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.

      Your logical fallacy is the False Dichotomy. You can also understand that laws against fraud, violence, and theft (the only real crimes) are valid, victimless crimes which are designed to produce revenue and which don't achieve their stated goals are evil (they themselves are a form of fraud, enacted to justify theft and/or violence) and laws which restrict economic activity in a society in which it is a crime to not have money (which is effectively true everywhere in the modern world) are slavery.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    7. Re:We're a tech company... by Shadow+of+Eternity · · Score: 2

      Your logical fallacy is the False Compromise. When someone wants to cut off someone else's arm the second person is not being unreasonable when they refuse to settle on having their arm cut off at the elbow instead, nor are they making a false dichotomy by pointing out the non-evil choice is not cutting off people's arms.

      --
      A bullet may have your name on it but splash damage is addressed "To whom it may concern."
    8. Re:We're a tech company... by drinkypoo · · Score: 2

      Uber drivers are already complaining about pay. So Uber gets rich, the drivers get crappy pay, former taxi drivers are unemployed, and this according to your above implication, is fighting the economic slavery currently in place. How about we do something else altogether, we get rid of the taxi companies, and Uber.

      You just don't get it, do you? Cheering Uber now is in fact how we get that. Shitting all over Uber, and by extension the very idea of Uber, is how we get more laws favoring the entrenched paradigm which you have noticed is actually shitty.

      If Uber succeeds in getting laws changed in order to deprecate the existing taxi licensing system, we all win — including hypothetical Uber competitors of the future that we like better.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    9. Re:We're a tech company... by Dragonslicer · · Score: 3, Interesting

      Surely you do not completely discount civil disobedience as a tactic with no redeeming social value, even if you are not specifically a proponent of Uber.

      It seems like a lot of people use the argument that a person (or in this case, company) shouldn't be punished for their act of civil disobedience. That argument is ridiculous. 50 years ago, activists committed acts of civil disobedience knowing full well that they would be punished for them. The whole point of civil disobedience was to use the punishment to draw attention to their cause.

      Claiming that your actions are civil disobedience and then trying to escape punishment doesn't make you a hero. It makes you a coward.

    10. Re:We're a tech company... by tehcyder · · Score: 2

      It's one of the standard rhetorical obfuscation devices on slashdot (and the internet generally) to throw out "that's a strawman/ad hominem/whatever fallacy" even when it's not even slightly applicable. To naive readers, especially if you include a handy link to an explanation of the fallacy, it makes it easy to overlook the actual content of a statement and try to match it to the relevant model.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    11. Re:We're a tech company... by drinkypoo · · Score: 2

      So the laws making slavery illegal are themselves slavery? They certainly restrict someone's economic activity, as do laws against child labour.

      No, no they do not. They restrict someone's ability to control someone else's economic activity.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  2. Re:how is babby formed by timrod · · Score: 5, Funny

    In AD 2015, Uber is violation the Ontario Highway Traffic Act!!

    Uber Executive: "What Happen??"
    Uber Executive: "Somebody set up us the lawsuit!!"

    The Taxi and Limo Drivers And Owners in the Province of Ontario, Canada: "HOW ARE YOU GENTLEMEN"
    Ttladoitpooc: "YOU HAVE CAUSED US TO LOST MONEY AND ARE VIOLATION OF THE ONTARIO HIGHWAY TRAFFIC ACT"
    Ttladoitpooc: "WE MAKE LAWSUE FOR FOUR HUNDRED MILLION CANADIAN DOLLARS OF CANADA"
    Ttladoitpooc: "YOU HAVE NO RECOUP CHANCE FOR LEGAL FEES MAKE YOUR TIME"

    Uber Executives: "TAKE OFF EVERY ATTORNEY, FOR GREAT JUSTICE!!"

  3. Re:Uber should countersue by bloodhawk · · Score: 2

    losing money to another company is not an issue unless you are using unfair competitive practises. In this case they are claiming that is what Uber is doing by ignoring the regulations so they can undercut them.

  4. Handy article on the Globe and Mail by debrain · · Score: 5, Insightful

    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.

    1. Re:Handy article on the Globe and Mail by dskoll · · Score: 3, Insightful

      Same thing in Ottawa. Taxi plates are artificially scarce, which drives up the cost of obtaining them to stratospheric levels. Taxi drivers rent the plates from investors and they have to work like hell to make very little money because their expenses are so high, even though cab fares are high too.

      The correct thing to do would be to eliminate the artificial scarcity. Let anyone who is willing and able to comply with the safety, insurance and knowledge regulations drive a cab. That will bring market forces back into play and taxi fares will settle down to something reasonable and sustainable, and Uber would no longer be necessary.

      Unfortunately, the people lobbying against Uber are the plate-holding investors who would take a huge loss if the taxi industry were allowed to run like any normal industry, so they spend tons of bucks to protect their investments.

  5. Re:Who wrote the summary? by Anonymous Coward · · Score: 4, Funny

    Did you miss the "farrellj writes:" part of the summary? You can CLICK RIGHT HERE to view the author's Slashdot profile if you did miss that part of the summary.

    He has a 3-digit Slashdot UID, for crying out loud! Show some respect!

    According to his Slashdot profile biography, he coined the term "slashdot effect", for crying out loud! Show some respect!

    And he also has been using Linux since kernel version 0.12, for crying out loud! Show some respect!

    And he even built a Linux distribution for a company, for crying out loud! Show some respect!

    And he was a past vice president of the Ottawa Linux users group, for crying out loud! Show some respect!

    And he helped put on the Mozilla source code release party in Montreal, for crying out loud! Show some respect!

    And he even runs a Science Fiction conference in his spare time, for crying out loud! Show some respect!

    Show some fucking respect, why don't you!

  6. Re:Who wrote the summary? by Chris+Johnson · · Score: 2

    Nah. They give those things to any bozo these days ;)

  7. Re:Who wrote the summary? by ArmoredDragon · · Score: 4, Funny

    Well the article is about the land north beyond the wall, so the interested editor might be a wildling, and wildlings don't know the difference.

  8. Re:Good by aberglas · · Score: 3, Informative

    Here in Oz, taxi drivers raced to the bottom long ago. It is the taxi plate OWNERS, not the drivers that hold the monopoly licenses, and cream 55% of the fares from the drivers.

    Unless the Canadian situation is very different, then Uber is only a force for a bit of good.

  9. Re:Uber should countersue by vux984 · · Score: 5, Interesting

    So you go out and buy chocolate bars for $1 each and sell them for $5 and people only have to wait a minute or two to purchase them

    And you don't bother getting a business license. Your business entrance isn't accessible to disabled people.

    When asked whether you are insured against someone breaking their neck on your premises you mention that you've registered your place of business as your home, and that you have basic residential insurance. Besides its like having a garage sale... so its all casual and informal.

    Sure its all organized and run by multi-billion dollar multi-national corporation... but other than connecting buyers with sellers with an app, handling all the money, advertising, and deciding who is allowed to participate, well... its still casual... like a garage sale.

    Now, don't get me wrong, I have serious issues with the 'medallion' system and think its fundamentally wrong. But uber is a bunch of crooks.

  10. Re:Who wrote the summary? by Panoptes · · Score: 2

    "Did you miss the "farrellj writes:" part of the summary? You can CLICK RIGHT HERE [slashdot.org] to view the author's Slashdot profile if you did miss that part of the summary."

    His writing is poor and ungrammatical. Show some respect for the English language!

  11. Why this again? by Murdoch5 · · Score: 2

    Taxi drivers are upset that they finally have competition and for once they have to compete in a fair market place. If I need to get from point A to point B and my choices are a Taxi, or Uber, I'll always pick Uber because it's a better car, a better car ride, driven by someone who is actually qualified to drive me and someone who cares about more then earning a dollar. Taxi drivers are unsafe, unstable, wreckless, road navigators that ignore safety and rules all to make a dollar, It's time they learn that the public shouldn't have to put up with it.

    1. Re:Why this again? by bloodhawk · · Score: 3, Interesting

      Taxi drivers are upset that they finally have competition and for once they have to compete in a fair market place. If I need to get from point A to point B and my choices are a Taxi, or Uber, I'll always pick Uber because it's a better car, a better car ride, driven by someone who is actually qualified to drive me and someone who cares about more then earning a dollar. Taxi drivers are unsafe, unstable, wreckless, road navigators that ignore safety and rules all to make a dollar, It's time they learn that the public shouldn't have to put up with it.

      I don't like the taxi industry, but the whole point is that Uber AREN'T competing in a fair marketplace, they are intentionally avoiding competing fairly by claiming they don't have to pay the same fees or abide by the same regulations as Taxi's and hence are able to undercut them.

  12. Uber: We're nothing like taxis by GoodNewsJimDotCom · · Score: 3, Interesting

    Ebay: We're nothing like auctions.
    Paypal: We're nothing like a bank.

    If you're a tech company, claim you're nothing like has ever come before as to be immune to as many laws as possible.

  13. Re:how is babby formed by WCLPeter · · Score: 2

    Uber Executives: "TAKE OFF EVERY ATTORNEY, FOR GREAT JUSTICE!!"

    Uber Canada Executives: "TAKE OFF EVERY ATTORNEY, FOR GREAT JUSTICE IN THE GREAT WHITE NORTH EH!!"

  14. Think taxes, not taxis by holophrastic · · Score: 3, Insightful

    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.

  15. Re:Who wrote the summary? by farrellj · · Score: 4, Informative

    I have a great deal of respect for the English language, but as I suffer from both Dyslexia, and ADHD, it is amazing I can express myself at all in the written word. I can't write as fast as I think, so I accidentally drop words from sentences. If it wasn't for spell check, I would be functionally illiterate.

    So go ahead and kick the cripple, it's easy and fun.

    Right.

    --
    CAN-CON 2019 - Ottawa's only book oriented Science Fiction Convention! October 18-20, Sheraton Hotel, Ottawa, Canada h
  16. Wouldn't the solution to the problem by rsilvergun · · Score: 3, Interesting

    to enforce the existing laws for _everyone_? Instead of just saying "Well, the plat owners are violating the law so it's OK if Uber does it too"?

    Oh, and while I'm on the subject, Uber's choice of prey is slightly different. Uber requires a pretty nice car. The sort that you're run of the mill cabbie doesn't have. That's why cabbies get stuck renting their cars. Uber drivers are mostly desperate folks who just lost their job with a decent car from when they had one. The cab companies prey on recent immigrants. Uber preys on the recently unemployed.

    Both practices are abhorrent. Let's shut 'em both down.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  17. bUber by goombah99 · · Score: 5, Funny

    Perhaps that explains why my company bUber (pronounced Boob Urge) has bee so tied up in the courts. The concept is simple our company iPimp arranges meetings of escorts in hotel rooms. The contractors are all independent contractors, making a little money, but really they are their to give their single serving friends, we call them rides, a hand. This is completely different from normal prostitution, it's a different bussiness model even though it fills the same niche. In places where whore houses are well regulated, inspected and liscenced one can see that we don't need to meet such requirements since our service producers are independent contractors. Our rates are lower since were just making connections between people who might not be full time whores. They just notify us when they are available and we make use of what would otherwise would have been wasted time. We have surge pricing for conventions and with that can get more providers on the street when they are needed.

    Recently Uber approached us because it fits well with there model. Our providers need delivery to addresses, and their drivers can act as sales agents for us as well. But they are reluctant to merge with us until we can shake these ridiculous legal problems. We certainly are not a traditional whore house.

    --
    Some drink at the fountain of knowledge. Others just gargle.
  18. Uber is a micro travel agent by Tijaska · · Score: 2

    Uber are micro travel agents. They use new tech to help people who want to travel to make arrangements with providers of travel services. Because the new tech makes it really quick, easy and cheap to book a voyage, it is economically viable to include short-distance car journeys in the range of products that they offer. Declare the Uber business model illegal today, and you will find yourself on a course that eliminates the entire travel agency business tomorrow.

    If we really want retro services we should ban phone bookings of taxicabs. That makes the process too easy. Cabbies should do it the way they used to do in the good old days, cruise around all day waiting for someone to hail them from the curb. Cab companies that accept phone bookings compete unfairly with the cruising cab model. If you're concerned that this would result in more fuel being burned and more CO2 pollution we could always pass laws requiring cabbies to operate horse-drawn carriages instead of motorized vehicles.

    Ah, the good old days.

    1. Re:Uber is a micro travel agent by FranTaylor · · Score: 2

      Uber are micro travel agents.

      You can call them a travel agent or a floor wax or a dessert topping or whatever you want to, but your stupid vocabulary tricks are meaningless. The law says what it says.

  19. Re:The whole issue is going to get worse for Taxis by ADRA · · Score: 2

    Do we have horses and buggies to this day? Yes. Are they used for transportation? yes. Are they in any way relevant to modern day communiting and transportation needs? No.

    Are these robot taxis going to pick up people's baggage from the curb and put it in the trunk?
    No, hire a limo or a 'real driver' for double / triple the cost for that honor. Why not, since you're flying your private jet around exclusively for your needs as well. Hell, just load a car on that jet and you're done!

    Will they be able to walk into a building to pick up a package to be delivered?
    Nope, I doubt its a common request, but you'll have to hire a freight courier or in-city courier, or a bike courier, or...

    Will they be able to resolve a dispute between two riders?
    Nope, but depending on the dispute and the regulations, there may be a fixed reservation lock for multiple potential pick-ups and a call-for-help button in case of real life emergencies (like many modern citys' public transit does already).

    Is it legal for an unattended child to ride in a vehicle with no adults in it?
    Who knows (when autonomous vehicles are legalized), but I know for a fact fear mongering won't answer that question any better (PS: Since when do people leave their child unattended in a cab, even with a real driver? Its just a bad question in so many ways).

    --
    Bye!