Uber sued by Desoto, Flywheel

Date: 2 NOV 2016posted by Car Rentaledited by WinX

In another lawsuit against the ride-hail giant Uber, Desoto, recently re branded as a ride-hailing company called Flywheel, is accused of predatory pricing tactics. Flywheel is the oldest cab company in San Francisco. They accuse Uber of lying about the availability, pricing and safety of its rides, lying to drivers about the income they can earn, discriminating against disabled passengers, genders and race, and illegally increasing fares during peak hours through a surge charge. All these accusations lead to the goal of predatory pricing which drive a "race to the bottom" in transportation services.

According to Flywheel, "Uber has done little more than implement a business strategy that openly flouts the law while shifting many of the costs and nearly all of the risks of providing ride-hail services from itself to its drivers and passengers while forcing a race to the bottom through predatory pricing tactics - where, propped up by billions of dollars in venture capital funding, Uber will remain until its illegal strategy has forced all other competitors from the market." Flywheel is seeking compensation from Uber "greater than $5 million." So in a nutshell, Flywheel feels Uber's practice of subsidizing its rides to keep fares cheap is unfair and anti-competitive because Uber has a vast reserve of venture capital to do so.

Uber counters with Flywheel has no basis for their allegations of predatory pricing since they only focuses narrowly upon a small portion of Uber's business - ride-sharing. They also counter with Uber's ultimate goal is to end personal car ownership, which is why it is subsidizing its rides to keep fares low.

Leave a comment

Please enter your full name

Please enter your question