The state Public Service Commission Wednesday denied a request from the owners of century-old Yellow Cab of Baltimore to prohibit Uber Technologies Inc. from operating a luxury town car service that can be hired by smartphone.
Yellow Cab officials believe the San Francisco-based company that launched service in the city and Baltimore County late last month has an unfair competitive advantage because the startup does not comply with safety and insurance regulations. But Uber contends that it is a technology company with an app that allows independent drivers and upscale customers to do business on their own.
The commission staff recommended that Yellow Cab's request be denied because at the time of its review, Uber had not begun operations. The commission's decision instructs the staff to study the Uber business model and report back.