MONTREAL - A Quebec judge has ruled against the taxi industry in its latest attempt to stop Uber's operations in the province.

Superior Court Justice Michel Yergeau said today there are no compelling reasons to prevent the ride-hailing company from going ahead with a one-year pilot project.

An agreement for that project came about after protracted negotiations between Uber and the Quebec government.

A lawyer for the taxi industry argued in court Monday that cabbies are losing income because of Uber.

He also said Uber is currently operating illegally in the province because the pilot project hasn't yet come into force.

The taxi industry says the deal creates a two-tier industry as Uber drivers won't have to rent or purchase traditional permits, which cost cab drivers upward of $200,000 if a car is included in the price.