Dot Ave Cab, Inc. et al. v. Uber Technologies, Inc. (17-cv-10180).

A large number of Boston cab companies filed a second amended complaint against Uber, adding ten new companies as plaintiffs to bring the total number of plaintiffs to one hundred and ninety-six.  The cab companies allege that Uber controls 80% of the ride-hail market, which is defined as the “low-cost, on-demand, Ride Hail ground transportation services that originate in Boston and that seat 3-4 passengers.”  The complaint is specifically addressed to “UberX,” one of Uber’s lower cost options.  There are counts for unfair competition under MGL c. 93A, Section 11 and common law unfair competition for operating a transportation service without complying with the laws of Boston and Massachusetts, thus obtaining customers who would otherwise use cab services and devaluing taxi medallions; attempted monopolization, under the Sherman Antitrust Act and under M.G.L. 93A, Section 5, of the Boston “ride-hail” market (somewhat ironically alleging that the purpose of the Act is to “preserve and advance our system of free and open competition and to secure to everyone an equal opportunity to engage in business, trade and commerce for the purpose of ensuring that the consuming public may receive  better goods and services at lower cost”).  The original complaint followed three other complaints brought by multiple cab companies from Malden, Braintree and Cambridge, each with similar allegations.

The lawsuit follows legislative action, under which the state will impose a 5-cent fee on every trip taken with Uber and Lyft, and funnel that money as “financial assistance” to their taxi competitors.  Prior to the introduction of companies like Uber and Lyft, taxi medallions in Boston were capped at 1,825, and sold for as much as $700,000 as late as 2014.  In 2014, taxi medallion sold for as much as $700,000.  Since the introduction of ride-hail companies, however, taxi ridership dropped about 25%, and the average price for a Boston taxi medallion dropped about 40 percent.

 

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