Cabs in the Courtroom

The days of hailing yellow taxis seem to be long gone. Instead of trying to wave down cabs on the side of the street, passengers simply make a few clicks on their smartphones to have a driver appear curbside. Mobile apps like Uber and Lyft are taking over urban transportation rapidly, and customers seem to love the ease and convenience these services offer. Of course, there is always a catch, and even though Uber and Lyft are enjoying great success in the business world, they face a tough battle in the courtroom.

When services like Uber and Lyft have introduced to Texas a few years ago, there was massive uproar and pressure on law enforcement officials to respond. These were new services that were massively disrupting the transportation industry. Opponents claimed that these new companies needed to follow transportation-for-hire regulations and obtain city permits to stay legally in business. There were several notable cases last year where undercover police carried out sting operations, impounding the cars of Lyft drivers for operating an illegal taxi service.

Even the citations and impounding did little to stop the growth of these companies, as Lyft and Uber simply paid for the damages for their drivers and continued to see their operations proliferate. As the growth continues, the opposition has become more vocal. Specifically, taxi and limo companies are firmly against allowing these new mobile services to continue. They argue that Uber and Lyft are not being subjected to some of the regulations that taxi and limo companies face, such as having to set standardized rates and pay monthly permit fees.

It makes sense that these traditional companies oppose Uber and Lyft because as these new companies grow, taxi and limo businesses are seeing their market share shrink. These mobile application-based transportation services are incredibly popular with travelers. A recent report from San Antonio indicated that over 47 percent of ground transportation rides occurred through Uber in the last month. In Dallas, Uber accounts for 56 percent of rides, and in San Francisco, a whopping 71 percent of rides were through Uber.

With all this success, it's no wonder that these technology transportation services are willing to put up a fight in the courtroom. Currently, Uber is circulating a petition that has already received over 100,000 signatures from riders expressing support for the service. Despite attempts by government and law enforcement to halt these services, the companies continue to operate and grow, feeding a surging demand in cities like Austin and Houston for reliable and convenient transportation services.

Uber and Lyft are here to stay, despite what local policymakers have to say about it. These companies are using technology to introduce a very new business model. When technology outpaces the law, it usually leaves behind a lot of gray areas and room for debate. A new regulatory framework will eventually have to be built to allow these technology transportation companies to operate smoothly. Until then, it will be interesting to see how this experiment carries out amidst all the growth, controversy, and uncertainty.