The taxi group claims that Uber falls under the umbrella of a corrupt organization under the federal RICO statute. The Philadelphia lawsuit says Uber's operations are damaging the value of taxi medallions in the city, which currently cost about $520,000 each.
Bidness Etc. reported that the enraged Philadelphia cab drivers are pulling no punches in filing their legal action, claiming that Uber services operate in bad faith, unlawfully, and with evil or rancorous motive and ill will. "Not since the days of bootlegging has there been a criminal enterprise so brazen. Their outrageous acts are legion," the lawsuit read.
Uber allows potential passengers to find drivers through its mobile application and share rides with other passengers, effectively cutting the cost. It is in some ways a glorified carpool service, with the drivers not undergoing the normal stringent regulations on taxi drivers.
Uber's circumvention of state and city regulations also has been pointed out by the Philadephia-based taxi companies, along with signaling out that the Uber's operations are not good for the financial health of the industry as a whole. The payment structure in place to distribute earnings to the drivers has also been dismissed as wire fraud by the taxi group.
Bidness Etc. reported that the taxi companies are seeking unspecified damages for the hit their business has taken since Uber came to the fore, and have also filed an injunction that could stop Uber from operating in the region in the near future.