The Houston Chronicle reports that local taxi companies (i.e., the Greater Houston Transportation Company) have sued Uber and Lyft in Federal Court, alleging that the ridesharing apps (which moonlight as de facto taxi companies) are violating City ordinance by illegally accepting payments. As many will recall, Lyft and Uber recently entered the market in Houston, with the understanding that they could not accept any payment until everything is straightened out, legally speaking, down out City Hall. Lyft tried, at first, to say they did not actually charge for their services but were really “donation based,” but after Mayor Annise Parker made an admittedly epic comparison to streetwalkers, Lyft backed off from that sentiment.
The problem with this delicate arrangement is that Uber and Lyft have not lived up to their end of the bargain. Just last Saturday, Dug Begley at the Houston Chronicle delineated the plethora of citations these companies have been receiving in recent days for allegedly operating illegally. 26 citations just in recent days, as of Saturday. Accordingly, the argument shifts to the Taxi Co. who, for better or for worse, must abide by the regulations that are currently on the books. Whether or not you believe that there should be reform of the City’s taxi ordinances, everyone should be united against the overt lawbreaking on the part of Lyft and Uber.