Uber CEO Faces Lawsuit Price Fixing Allegations



/ 2 years ago

uber

Uber is a popular app that allows people to act almost like taxi’s for others, with one person pressing a button to request a ride and minutes later a driver arriving to provide the transport at a cost. With the concept of pricing, a key part of the system, Uber’s CEO Travis Kalanick may want to be careful as he faces a lawsuit of price fixing allegations relating to the app.

Uber is no stranger to legal troubles, with people in Jakarta staging violent protests over the app and one driver even claiming that a demon convinced him through the app to commit murder, the app has seen its fair time in the spotlight for legal issues. During the recent Metro shutdown in New York Uber decided that it wouldn’t raise prices to more than 3.9 times their normal rate, a kind gesture that could certainly see people put off using the service. A US District court judge in New York has stated that Kalanick must face

A US District court judge, Jed Rakoff, in New York has stated that Kalanick must face the lawsuit that states he conspired with drivers to set the fares the app provides using an algorithm, including its well-known progress of increasing rates during peak hours through its “surge pricing” model.

In his comments, Rakoff states that the plaintiffs had “plausibly alleged a conspiracy” which ultimately drove out rivals for the app. It will be interesting to see how a company as well known as Uber faces charges over something some would call a “feature” within their software while others would claim it takes money from those desperate in times of need, such as those escaping from attacks or when other transport systems are shut down.

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