An Ontario court on Friday rejected the city of Toronto's request for an injunction to halt Uber's operations in Canada's largest city.
Judge Sean Dunphy dismissed the application and said there was no evidence the company operates as a taxi broker, according to a copy of the ruling provided by Uber.
"We are pleased with today's ruling, which confirms that ridesharing is a new business model, distinct from traditional taxi services," Ian Black, general manager for Uber Canada, said in a statement.
"Our hope is that this decision helps further pave the way for ridesharing regulations and we look forward to continuing our work with Mayor Tory and Toronto City Council."
The iTaxi Association representing taxi drivers said on its Twitter feed that it was deeply disappointed with the decision.
Taxi drivers packed a Toronto courtroom last month as the city's government stated its case for the Uber ride-sharing service to be regulated like the traditional cab companies with which it competes.
Toronto was seeking an injunction to halt Uber's operations unless the San Francisco-based company and all its drivers were licensed.
Uber is fighting for legal status worldwide, one jurisdiction at a time, as authorities weigh the legality of its phone-based app.
© Thomson Reuters 2015