One day after an Ontario judge sided with Uber in its legal dispute with the City of Toronto, the local taxi industry says it will continue fighting to shut down the ride-hailing service.

Uber, which has been operating in Toronto for more than two years, does not have a taxi brokerage license. It filed for one in May, but council voted to defer debating the issue until the company's legal battle with the city is over.

That decision came down on Friday, when Superior Court Judge Sean Dunphy dismissed the city's application for a permanent injunction on Uber's operations, saying there's "no evidence" it is operating as a taxi broker, or that it has breached city bylaws.

"This court decision really quite firmly says that Uber is not a taxi company and it should be treated differently," said Sunil Johal, a policy director at the University of Toronto's Mowat Centre.

The decision, however, is being met with resistance by some local taxi drivers who say they are not giving up. Instead of focusing on the issue of licensing, those in the industry say they may now look at whether or not UberX operators can be legally insured to drive fare-paying passengers.

According to some taxi insurance brokers, many companies wouldn't cover a private driver for that purpose, as it violates the terms of their policy.

"They are driving with improper insurance because they are relying on personal auto policies that absolutely exclude that activity," Philomena Comerford, president of Baird MacGregor Insurance Brokers, told CTV Toronto on Saturday.

But not everyone is unhappy with Friday's court ruling. Some UberX users say the decision should be considered a win for the passenger.

"You get into a cab, you pay $5 and you haven't even gotten anywhere," Rob Odi said.

Toronto Mayor John Tory -- who has previously expressed his support for Uber -- said he hopes to meet with the company and representatives from the taxi industry in the coming days to find a mutually acceptable solution.

With files from CTV Toronto's Colin D’Mello and The Canadian Press