Uber, Lyft and Sidecar are Challenged with Legal Actions

By on October 29, 2014
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Ride-share companies Uber, Lyft and Sidecar have received letters by the San Francisco and Los Angeles district attorneys. The attorneys claim that the companies are not operating in a legal basis and that they may have to face legal action, if they do not change their tactics.

As a response to this claim, the companies say that the accusations against them are inaccurate. However, attorneys from the two districts assure they have conducted a joint investigation into the aforementioned companies and found a number of examples of California law violations. The main thing that the attorneys were concentrating on in their letter is connected with the companies’ policies of driver background checks.

According to the attorneys, the driver background checks conducted by the companies are not as deep as described by the companies. For example, Sidecar has misled its customers telling them it screens out drivers who have ever committed felonies, violations and even sexual assaults. However, Sidecar shared an open letter, saying that it strongly disagrees with the statements provided by the attorneys. The company refuses to change anything in its operations.

San Francisco District Attorney George Gascón required that the companies remove all statements implying their background checks reveal drivers’ complete criminal history from their mobile apps, websites and elsewhere.

Besides, the district attorneys require that the companies remove the shared ride service fares from their offerings. This new offering by the three companies is that individuals going the same way can travel in the same car and pay their fares separately. According to the attorneys, this feature violates the state law. However, according to Sidecar, the companies are going to continue the Shared Ride because they think they do not violate the law.

Uber, Lyft and Sidecar have been asked to respond to the letter and to meet with the attorneys by October 8. If not, the district attorneys may file legal actions seeking legal relief.

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