Uber Running Taxi ‘Black Market’ In Philly, $1.5M Suit Says

Law360, Washington (January 11, 2016, 4:52 PM EST) -- A Philadelphia taxi company owned by two Ukrainian refugees on Friday hit Uber with a $1.5 million lawsuit in Pennsylvania federal court saying the ride-hailing app has created a “black market” for unregulated taxi services that gutted the value of its permits.

Boris and Alla Kautsky, the owners of Coachtrans Inc., said in their lawsuit that Uber illegally entered the city’s taxi cab market without first obtaining proper “medallions” required by city regulators. By sidestepping that requirement, Uber tanked the value of Coachtrans’ three medallions, which the Kautskys had planned to sell off for their retirement, the lawsuit said.

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