Flywheel Taxi sues PUC over ride apps
San Francisco’s Flywheel Taxi has sued California regulators over a long-standing complaint of the entire taxi industry, saying the way UberX, Lyft and Sidecar are regulated creates an unfair playing field.
Flywheel filed its suit Friday in U.S. District Court against the California Public Utilities Commission, which stepped in two years ago to regulate new on-demand services that it calls TNCs, or transportation network companies.
“We are seeking equal protection,” said Hansu Kim, CEO of Flywheel, which has a fleet of 230 bright red taxis in San Francisco. “When we compete against Uber, we want them to play by the same set of rules.” Flywheel, formerly known as DeSoto Cab, rebranded itself this year to highlight the fact that its taxis — like most of those in San Francisco — can be summoned and paid for on a smartphone with the Flywheel app.
“When we compete against Uber, we want them to play by the same set of rules.”
Hansu Kim, CEO of Flywheel Taxi
A PUC spokeswoman said the organization had not received the filing and could not comment.
While PUC rules for Uber and Lyft cover the entire state, taxis are regulated by cities or counties and must abide by stricter rules. The suit says the PUC should not have jurisdiction over the new services, because they are “de facto taxi services.” Instead, it says, city and county governments should oversee Uber and Lyft, just as they do with taxis.
The suit’s allegations mirror what taxi companies and drivers have been saying for several years as they’ve seen their business eroded by electronically hailed rides offered by drivers in their own cars via Uber and Lyft.
PUC regulations have led to disparate treatment of Uber and Lyft, allowing them to sidestep expensive requirements imposed on the taxi industry, the suit claims. Among those in San Francisco: workers’ comp coverage for all drivers, maintaining vehicle fleets that are 90 percent fuel-efficient, limiting how many forhire cars are on the street, and providing disabled-accessible vehicles. San Francisco taxi drivers also must hold commercial licenses and go through more training and stricter background checks than UberX and Lyft drivers, the suit said.
The suit asks the PUC to step down as the regulator of Uber, Lyft and Sidecar, ceding that duty to city and county authorities; and admit that it has violated Flywheel’s rights to equal protection and due process. It doesn’t seek monetary damages, other than Flywheel’s attorney fees.
Uber did not immediately respond to a request for comment.