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There’s a new way to get around town in Hamilton today, but there may be a bumpy road ahead.

Uber, the massive digital car service organization, began operations in Hamilton, London, Guelph and Kitchener-Waterloo today with it’s Uber-X service.

In almost every city and jurisdiction that Uber has entered world-wide, so far, they’ve been up against rules, regulations, licenses, and millions of angry taxi drivers who complain that by not following the existing rules, Uber is stealing their customers, and their livelihoods.

Uber undercuts the established taxi industry, by avoiding costs like licensing fees, costs for dispatch services, commercial insurance, and a host of other expensive business costs.

They use digital technology, and cell phone GPS to link drivers to customers, and register their customers as users, which they say is a business model different from the taxi industry, and therefore they’re not bound by its regulations.

So far Uber has managed to steam roll its service over major cities like Berlin, London, Moscow, Paris, Rio and today, New York Mayor Bill Diblassio halted city efforts to keep Uber out of the big apple.

But the city of Hamilton says if UBER is operating in Hamilton, it’s going to have to operate by the established rules.

“Their business model doesn’t fall within the current scope of the licensing by-law — so we have said that if we find that they are actually operating outside of the licensing bylaw, there will be enforcement action. Our position has been the same as we’ve told Uber. They are welcome to come to the city of Hamilton but they have to fall within the current bylaws that are written. That means they must become a broker, they must use licensed taxis and licensed drivers. The reason the bylaws are in place is to ensure customer safety, and consumer protection. Those are the two issues we’re worried about, and if they follow those rules, Uber, they’re welcome to come to Hamilton.” explains Ken Leendertse, Director of Licensing.

All of this is unfolding against the background of a $400 million, class action lawsuit launched this afternoon by Sutts – Strosberg LLP of Toronto.

It cites the Highway Traffic act, specifically section 39, which specifically prohibits “a passenger to be picked up in a motor vehicle other than a bus for purposes of being transported for compensation without the proper authorization.”

Uber has already rejected the suit as protectionist, and without merit.

So for right now at least, you can download the Uber App on your phone, sign up as a customer , and use the service if you want .