Uber Technologies now faces yet another lawsuit in connection with how it does business. This week 45 taxi companies in Philadelphia filed a lawsuit against the ride-sharing company. The case alleges that Uber engaged in unethical and unfair competition.
Details on the case against Uber
The taxi companies say Uber’s business model is unfair because the company should follow state regulations for cab companies. Bloomberg reports that the cab owners called Uber a “criminal enterprise,” even comparing the company’s business to bootlegging liquor.
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The lawsuit reads: “Not since the days of bootlegging has there been a criminal enterprise so brazen and open.” The case points out that investment banks have sunk hundreds of millions of dollars in investments into the ride-sharing company and alleges that Uber operates “in blatant violation of federal and state law.”
Uber drivers don’t carry certificates
Checker Cab Philadelphia is the lead plaintiff in the federal lawsuit filed against Uber. The 45 companies say in the suit that the only cabs that are legally allowed to run in Philadelphia are those with an official certificate and medallion.
Those are valued at up to $520,000. Of course Uber drivers do not carry these certificates, and the plaintiffs allege that they aren’t operating in compliance with local vehicle and driver safety rules. As a result, the case claims Uber’s service is illegal.
Uber’s other lawsuits
Uber, as well as competitor Lyft, Inc. and other ride-sharing companies have faced a growing number of lawsuits. Uber has been around since 2009 and is the most highly valued technology startup in the U.S., according to Bloomberg. Just this month, the company raised an additional $1.2 billion in an offering that valued it at $40 billion.
Uber now remains in hyper-growth mode, expanding into cities worldwide in more than 50 countries, according to a report from NPR. Nevada was the first U.S. state to suspend Uber’s services. Several European countries have done the same amid protests from taxi drivers which shut down the roads. But the company’s problems don’t end there.
The company’s CEO was also indicted in South Korea, and a Boston Uber driver was arraigned on rape and kidnapping charges earlier this month. And the list of problems and allegations against Uber continues to pile up.