A judge has ruled against an injunction to stop Uber from operating in Quebec.
Last week, a coalition of taxi drivers and owners asked Justice Michel Deziel to shut down the pilot project.
They argued the deal struck between the provincial government and the multinational transportation company violates existing law.
The taxi industry argued an injunction was essential because their livelihood was at risk as long as Uber was able to operate.
In his ruling Tuesday, Justice Deziel said the matter was not as urgent as taxi operators claimed, and that it could wait until a longer hearing in January 2017.
Guy Chevrette, who represents taxi owners, was surprised by the ruling.
"The minister has powers, but what he has done with this pilot project goes beyond his powers," said Chevrette.
Following the ruling, Montreal taxi drivers filed another injunction Tuesday demanding that Uber cease operations altogether until they're recognized as a legal company in Quebec.
However, Uber announced that they are satisfied with the judge’s decision.
“Today's ruling is a confirmation that we can continue serving Quebecers under our agreement with the government. Our focus remains offering a quality transportation alternative under the terms established by the pilot project and imposed by the government,” Uber officials said in a statement Tuesday.
Under the terms of the pilot project, Uber was allowed to have its drivers operate for 50,000 hours a week throughout the province, but its drivers did not need to acquire taxi medallions for their vehicles.
For its part Uber would collect the GST and PST, pay 7 cents per ride into a fund to update the taxi industry, and pay 90 cents per ride as a separate provincial tax.
There is confusion about whether or not the pilot project is already in effect, or whether it comes into play later this month. Many Uber cars were seized last week.
In the meantime, Montreal’s taxi industry is trying to put a positive spin on the situation, adding that the judge's decision confirms that Uber is actually an illegal operation.