Seattle moves a step closer to lifting cap on rideshare cars such as Lyft and Uber

Seattle has moved one step closer to lifting the cap on rideshare cars that are allowed to pick up passengers alongside traditional taxi companies.

The Seattle City Council voted Monday to repeal its previous rules governing companies like Uber and Lyft.

Next week, the council plans to vote on a compromise agreement between the companies that use smartphone apps to dispatch drivers and Seattle's more traditional taxi companies.

Meanwhile, the city and all kinds of cab companies are waiting to hear the results of a lawsuit filed more than three months ago in King County Superior Court. In the lawsuit, the Western Washington Taxicab Operators Association accuses Uber of unlawful and deceptive business practices.

Councilmembers said they expect a ruling this week on whether the rideshare company should have to follow all the same rules as regular taxi cabs, including criminal background checks and training.

Included in the proposed agreement is a plan to allow regular taxis to be dispatched by smartphone apps. It would also require rideshare companies and drivers to be licensed and meet insurance requirements.

The deal was brokered by Seattle Mayor Ed Murray. Councilmembers voted 6-3 to repeal the previous regulations.

Several councilmembers spoke in favor of delaying the vote until the lawsuit is decided.