Toronto city council has deferred a decision on reforming the city’s taxi licensing system until the legal battle with upstart Uber has been dealt with.

A court decision on the legality of the Uber service is expected later this month.

Uber had applied for the licence on Tuesday morning as a compromise with the city.

Uber spokesperson Susie Heath says the licence covers the company’s taxi division, which allows riders to hail city cabs through Uber’s mobile app.

Toronto’s licensing and standards division is trying to obtain a court injunction to shut down Uber’s operations, claiming that the use of drivers without official cab licences poses a safety risk to the public.

Mayor John Tory says any solution to the taxi dilemma must ensure fair competition and more importantly ensure safe and reliable service for the public.