So Uber is experiencing another legal run-in with California as Desoto sued the company for “predatory pricing tactics” or undercutting rival companies. Desoto is known as the oldest taxi company in San Francisco and entered the ride-hail arena in early 2015, rebranding itself as Flywheel.
In addition to undercutting rivals in the market, Flywheel accuses Uber of just being an all around terrible company in lying about income to drivers and discrimination against passengers based on their gender, race, and physical disability. This means all bases are covered for a suit to the tune of more than $5 million.
Uber points out that Flywheel is targeting a specific part—albeit the main part that brought the company to the dance and established the dance—of it’s overall business in ride-sharing. The company says that its end game is to end personal car ownership and that keeping prices low is a good way to move everything in that direction.
Given that Uber is ever expanding and running afoul of local taxi services, this won’t be last time you’ll hear of a company suing the ride-hailing giant. You can check out the specifics of the suit here, credit to ahawkins8223.