Winnipeg taxicab companies sue province over law allowing ride-sharing services
Duffy's Taxi and Unicity Taxi allege the law discriminates against them
The owners of Winnipeg's two largest taxicab companies are suing the province and seeking an injunction to stop ride-hailing from coming to Manitoba.
"This is our livelihood and we are pursuing all options including legal options," Winnipeg Taxi Coalition spokesperson Scott McFadyen said in a message Friday night.
The Local Vehicles for Hire Act, which passed in November, dissolves the Manitoba Taxicab Board, placing responsibility for regulation with local municipalities.
When it comes into effect as of March 1, communities can welcome Uber and Lyft to move into the marketplace.
In a statement of claim filed with the Court of Queen's Bench Friday the owners of Duffy's Taxi and Unicity Taxi allege the law discriminates against them, citing the Canadian Charter of Rights and Freedoms.
"As a result of the particular market conditions and nature of the taxi industry in the City of Winnipeg, the current holders of Taxi Business Licences are overwhelmingly male, immigrants to Canada, and of South Asian ethnicity and national origin," reads the statement of claim.
"The purpose of the [The Local Vehicles for Hire Act] is to radically alter the existing taxicab industry in the City of Winnipeg and allow for companies operating through Ride Sharing Arrangements to compete with existing taxicab operators."
The law is to come into effect no later than Feb. 28. The Manitoba Taxicab Board's licences will be cancelled on that date, but the City of Winnipeg will continue to recognize them.
Those licences can sell for as much as $430,000, according to a provincial report prepared by MNP LLP last year.
Winnipeg plans to add 60 more licences immediately and another 60 by the end of the year.
In the statement of claim Unicity and Duffy's say they should be repaid for the loss in value to their taxi licences as well as to their livelihood, saying the province acted in bad faith.
A spokesperson for the province said they would reserve comment until seeing the details of the statement of claim.