Continuing its battle against the city, the ride-sharing service Uber has taken the city of Madison’s ordinance violation case to federal court after citing concerns about fair treatment.
Uber has removed the complaint filed in Madison’s municipal court to a federal court, according to court documents. Uber is facing $42,000 in fines amid allegations that it has violated city ordinances and has been illegally providing paid rides to customers.
Uber argues that the case is an action between citizens of different states and that Congress envisioned federal courts being used for “those who might otherwise suffer from local prejudice against out-of-state parties,” Uber’s court filing said.
The filing says the city of Madison is not “simply the arm of alter ego of the state” and instead is a citizen of the state of Wisconsin, while Uber is a Delaware-based corporation with its principal place of business in California and is “therefore a citizen of Delaware and California,” the filing said.
Uber also claims that though the city is seeking $42,000 in fines, the company would lose more than $75,000 if it loses to the city, due to the loss of revenue caused by a ban on ride-buying services.
Proposed rideshare regulation changes could impact Uber, Lyft
The move is the latest in a series of troubles Uber has faced since beginning its service in Madison. Some of the biggest problems the company faces with the city come from its lack of insurance, 24-hour coverage, handicap accessibility and practice of surge pricing.
Ride-sharing ordinances are currently under revision by the city Transit and Parking Commission in hopes of regulating the way companies like Uber and Lyft operate in the city.
An Uber spokesperson and the Madison city attorney’s office did not respond to requests for comment.
