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Cab companies suing DOT, DMV over Uber

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HARTFORD — Two taxi companies are suing the state. It’s over a lack of oversight on ride-hailing services like Uber.

Stamford Yellow Cab and Westport Star Taxi are suing the Department of Transportation and the Department of Motor Vehicles, the Hartford Courant reports. The companies claim that Uber drivers are doing business in the state without meeting safety rules and regulations that govern cabs.

The owners claim that ride-hailing services are not subject to the same DOT and DMV oversight like vehicle safety inspections and extensive driver background checks. The companies say it gives Uber the unfair advantage of operating at a lower cost and offering low fares.

DOT and DMV officials claim that as government agencies they have immunity against the lawsuit and they also don’t have the authority to regulate those services.

This spring the general assembly worked on a bill to create several requirements for ride-hailing services but lawmakers failed to pass any legislation.

This type of lawsuit has become more common as cab companies are seeing a major drop in business because of ride-hailing services like Uber.