Maryland cab companies in business dispute with Uber

There is some debate about whether treating someone or something fairly is the same as treating them equally. The nature of the individual or company often determines how things should be treated. There is currently a business dispute between a number of cab companies in Maryland and Uber, a ride-sharing entity.

Cab companies throughout Maryland are contending that Uber’s pricing strategy is a form of price-fixing. Additionally, these companies believe that Uber’s lack of adherence to the rules and regulations that cab companies must adhere to has created an unfair environment in which the companies do business. According to the cab companies, all of this has created a rift in their relationships and business dealings with their clients.

Uber, on the other hand, states that it is not a cab company. Its business is attracted through a smartphone application that connects drivers and riders. It states that its pricing strategy is one based on the theory of supply and demand. Additionally, because it is a smartphone application rather than a traditional cab company, it claims that it is not held to the same rules, regulations and requirements as a traditional cab company.

This business dispute between the Maryland cab companies and Uber will ultimately be decided in Maryland’s court system. Businesses compete with each other on a daily basis for the consumer’s dollar. The profitability and viability of each business often depend upon its marketing strategy and the environment in which it competes. When one company believes that another company has an unfair advantage, a business dispute can often arise. If this happens, guidance in reviewing the appropriate rules and regulations can often indicate if litigation is called for in seeking to establish a fairer or more equitable environment in which the companies compete.

Source: The Baltimore Sun, "Md. taxi companies sue Uber", Erin Cox, July 3, 2014

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