The municipality sought an injunction requiring the respondents to obtain a licence as either a taxicab broker or a limousine service company under Chapter 545 of the City of Toronto Municipal Code.
The application alleged that the respondents, through their smartphone platform, accepted requests for transportation services and therefore carried on a regulated business.
The court interpreted the by‑law definitions of “taxicab”, “limousine service company”, and the requirement to “accept calls”, concluding that the automated software platform merely relayed digital requests between passengers and drivers.
Because acceptance occurred only when an individual driver chose to accept a trip request, the respondents themselves did not accept calls or requests within the meaning of the by‑law.
Accordingly, the respondents were not operating as a taxicab broker or limousine service company requiring a municipal licence.
