Taxi companies ask B.C. court to stay ride hailing approval, pending judicial review

A lawyer for the Vancouver Taxi Association says an independent board in British Columbia created an uneven playing field when it allowed the operation of ride-hailing companies.

David Penner wants the B.C. Supreme Court to stay Passenger Transportation Board approvals granted Uber and Lyft to operate in Metro Vancouver, pending a judicial review of those decisions.

He argued in court Tuesday in Vancouver that the board failed to adequately consider the economic impact of the decision and didn't give the taxi companies the opportunity for a meaningful response. Lawyers for Uber and the board have yet to respond in court.

Uber and Lyft drivers hit the road almost two weeks ago, following the long-awaited approval by the board on Jan. 23 of their licences.

Penner argued there will be significant or irreparable harm caused to taxi drivers if the ride-hailing companies are allowed to continue picking up passengers before dates can be set for the judicial review, which could take months.

He said it is contrary to the public interest to allow an unlimited number of ride-hailing vehicles on the road with unregulated prices when the taxi industry faces limits to its fleet size, operating areas and prices set by the board.

"So the taxi companies, in so far as they are set to compete with Uber and Lyft, are competing on an uneven playing field," Penner told the court. "And there is not the ability for taxi companies in this process to challenge whether or not the Uber and Lyft business models are viable." 

The taxi companies were granted two weeks to submit responses to thousands of pages of documents, many of which were redacted, and there were no oral hearings or opportunities for cross-examination, he said.

Uber and Lyft rely on business models that involve operating on significant losses until they "destroy" their competition, and there's no guarantee of a healthy passenger transportation industry beyond that, Penner argued.