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Regulatory Law Keyed to Shapiro, 4th Ed.
Philadelphia Taxi Association, Inc. v. Uber Technologies, Inc.
Citation:
886 F.3d 332 (2018)Facts
From 2005 to 2014, taxicabs operating in Philadelphia were required to have a medallion and certificate of public convenience issued by the Philadelphia Parking Authority (PPA). Medallions were valuable property often used as collateral for loans. By October 2014, approximately 500 taxicab companies in Philadelphia collectively held 1,610 medallions valued at an average of $545,000 each. Uber began operating in Philadelphia in October 2014 without securing medallions or certificates of public convenience. Uber’s service allowed customers to request rides through a smartphone application, with payment processed automatically. Unlike traditional taxicabs, Uber did not own vehicles or employ drivers directly. Initially, Uber did not pay fines to the PPA or comply with its regulations. In October 2016, Pennsylvania passed legislation approving Uber’s operation in Philadelphia under PPA regulation as a Transportation Network Company (TNC). During Uber’s first two years in Philadelphia, nearly 1,200 medallion taxicab drivers left their companies to drive for Uber. Medallion taxi rides decreased by about 30 percent, and medallion values dropped significantly to approximately $80,000 by November 2016.
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