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US: Flywheel Taxi sues Uber for antitrust violations

 |  November 2, 2016

Flywheel Taxi, a San Francisco cab company, is suing ride-hailing giant Uber for predatory pricing practices, claiming that Uber uses its billions of dollars of venture capital to undercut rivals on rides “in an effort to force all competitors from the market and establish a complete monopoly.”

The San Francisco taxi industry has lost 65 percent of its riders and 30 percent of its drivers since mid 2012 when Uber launched its low-cost UberX service, the suit said.

“Once all competitors have been forced from the market, Uber, unfettered by competition, will be free to charge exorbitant prices for all ride-hail transportation in San Francisco,” Flywheel Taxi said in a statement.

The federal lawsuit also alleges that Uber has misled the public about its availability, pricing and safety; lied to drivers about their earnings potential; discriminated against passengers on the basis of disability, race and gender; and illegally hiked fares during peak hours.

Full Content: San Francisco Gate

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