Uber Technologies Inc have to face a legal proceedings upon claims of being involved in malpractices like anticompetitive tactics and illegal predatory pricing strategies to wend off competitors which also expel smaller rival Sidecar Technologies Inc out of the business, as ordered a U.S. judge on Friday.
SC Innovations is the successor to Sidecar and by filing a new lawsuit it would be able to prove those allegations against Uber of being monopolizing the ride-sharing business by casting smaller rivals like Lyft Inc away or making the competition tougher for them to win customers, said Chief Magistrate Judge Joseph Spero of the federal court in San Francisco, who previously has dismissed an initial version of the grievance on January 21.
To the judge’s new orders, a spokeswoman for the ride-hailing giant declined to comment.
Headquartered at San Francisco, Sidecar started operating its ride-hailing service in 2012 offering the first app which inform the passengers about the prices before booking a ride and also provide passenger matching facility before sharing a ride. But after not living up to its business goals the company left the business in 2015 selling its assets to General Motors next year.
The complainant alleged Uber of being initially offering its driver the rates which were above than the market norms and also charged the passenger with lower fares to build its market share up. The company afterwards came on cutting the driver payments and raising pricing for passengers by adopting strategies like surge fee and dynamic pricing to recover its losses after becoming the dominating player in the ride-hailing market.
The San Francisco-based Uber was also involved in unethical practice of secretly booking and subsequently canceling rides on rival companies under its programs dubbed as “SLOG” and “Project Hell” in order to distract drivers as well as passengers from those companies to induce them to choose Uber for the same, the complainant accused Uber in its filing.