Newark cab companies file federal lawsuit over city's $10M Uber deal

NEWARK — Several Newark cab and limousine companies have filed a federal lawsuit against the city arguing that a $10 million deal cut with online ride-hailing company Uber violates constitutional rights of taxi drivers.

The lawsuit filed last week is the latest move by taxi groups to protest the deal they say unfairly tips the competitive scales in favor of Uber and similar companies.

Newark's cab associations have opposed the $10 million deal since it was announced in April.

The cab associations argue in the suit that Newark forces them to buy $500,000 licenses, while devaluing those licenses by letting online ride-hailing companies operate without them.

Read more: http://www.nj.com/essex/index.ssf/2016/08/taxi_groups_sue_newark_over_regulation_of_uber.html