Ridout Barron


Lawsuit filed against company that launched FastCab app

The company that launched the smartphone app FastCab has announced that the app will no longer be available in Calgary. The announcement is the result of a business and commercial law dispute with taxi companies in the area. After creating similar smartphone apps, various taxi companies in Calgary have filed a $1 million lawsuit against FastCab.

When it was available, FastCab gave smartphone users the ability to digitally hail a taxi. The app used GPS technology to connect licensed cab drivers with customers who were looking for a ride. According to the company owner, 200 taxis were using the service before the cab companies stepped in with their own apps.

The founder of the company commented that FastCab was beneficial for both the taxi driver and the customer. He said that everybody wanted to use the app before the drivers' jobs started to be threatened by the companies employing them. FastCab began to lose popularity in Calgary when drivers stopped using it and cab companies created their own versions of the app. The company behind FastCab plans to launch the app in a different Canadian city and in the United States.

When a company becomes the defendant in a similar lawsuit, company executives might want to seek legal assistance. A lawyer who has experience in business litigation might be able to help a company avoid suffering substantial financial losses by working out an agreement outside of court. To prevent future litigation, a lawyer may also be able to help a company to draft new policies and procedures that take potential disputes with competitors into account.

Source: CBC News, "FastCab app to leave Calgary after cab companies launch lawsuit", July 26, 2014

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