A group of taxi owners is suing Boston in federal court, alleging that allowing ride-for-hire services such as Uber, Lyft and Sidecar to operate in the Hub violates "their constitutional rights to just compensation."
The lawsuit, filed yesterday on behalf of two taxi owners, Raphael Ophir and Joseph Pierre, and the Boston Taxi Owners Association, accuses the city of "applying burdensome and costly taxi regulations" while allowing a handful of ride-sharing services to "compete without complying with those requirements or incurring the very large costs the City imposes on the Plaintiffs."
"The City requires members of the taxi industry to spend hundreds of thousands of dollars per taxi to engage in the taxi business and to comply with its vast set of regulations," the complaint reads. "While the city permits the de facto taxi companies to compete in the same business without any particular regulations."
The lawsuit also claims that state regulations for ride-sharing services — which were recently filed with the secretary of state but still need legislation action — will only "create an irrational, two-tiered regulatory system that unconstitutionally harms the economic property interests of taxicab medallion owners and drivers."
"The new regulation allows TNC's (transportation networking companies) to use practically any vehicle, charge any fare and not obtain commercial insurance, while requiring taxicab medallion owners and drivers to use specific vehicles, charge set rates, obtain certain insurance and incur mandated expenses," the complaint reads.
A separate motion seeks an injunction to block those new state regulations.
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