California Taxi Companies Team Up To Sue Uber For 'False Advertising'
from the how-about-just-competing? dept
The week of attacks on Uber continue. We already noted the problems the company was having in South Korea and France, and around the time that went up, Uber got banned in Germany. And then, a bunch of California taxi cab companies teamed up to sue Uber, claiming Uber is engaging in deceptive advertising by claiming that its safer than a taxi. The companies are particularly annoyed with the fact that Uber charges a "safe rides fee" but it's not clear if the company actually uses that money for safety purposes. As with similar lawsuits in other cities, it's difficult to see how this is anything more than sour grapes against a company that is serving customers better.Uber certainly has its issues, but the arguments that cab companies make against it just seem like the kind of thing competitors who don't want to compete make against the hot new thing. Whatever happened to just competing by building a better service, rather than suing? When I get into any kind of car -- whether driven by myself, a family member, a friend, an Uber driver or a taxi driver, I know that there's some amount of risk involved. That's the nature of getting into a car. I don't think that an Uber driver is any safer, even when I do pay the $1 "safety" fee. I use services like Uber and Lyft for their convenience, not because there's any magical formula for safety. So, when the cabbies make this argument, it just rings hollow:
These statements actually deceive, or have the tendency to deceive, customers into believing that riders who pay this $1 per ride fee to use UberX are safer than if they chose transportation via a taxi cab. Because this “Safe Rides Fee” is a separate line item on the receipt that Uber issues to customers, this bolsters the consumers’ expectation that they should be receiving the safest ride possible. Put differently, considering that Uber explicitly specifies that this is an additional safety fee, it is reasonable for consumers to expect that they will be receiving a ride safer than that provided by Plaintiffs’ taxi cabs, as Plaintiffs’ taxicabs simply charge a total fare, without imposing any additional surcharge to ensure a “Safe Ride.”No. I use Uber and I don't think that by paying $1 I'm any safer. But I do think that Uber, like any company, recognizes that having happy customers is important, and that includes making sure that drivers do a good job -- which, for the most part they do. I don't need some extra level of regulation that limits the competition, but doesn't actually make me any safer. I prefer a system where drivers actually compete to do a good job, knowing that if they don't they may get a bad rating and kicked out of the system. Uber works because of competition, and it's that simple fact that has these taxi companies so upset.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: cab hailing, california, false advertising, ride sharing, safety
Companies: uber
Reader Comments
Subscribe: RSS
View by: Time | Thread
Fees
In supporting Uber in this specific issue, you are supporting a form of misleading pricing.
[ link to this | view in chronology ]
Re: Fees
[ link to this | view in chronology ]
This fee does drop my respect for Uber
[ link to this | view in chronology ]
Uber sounds fine and all....
Does this imply Uber's standard service level is not safe?
I don't know that this rises to false advertising, but a little transparency about this fee would go a LONG way.
[ link to this | view in chronology ]
That might never be answered...
[ link to this | view in chronology ]
Masnick is happy to be ripped off by trendy con artists.
Uber is just one of your several "new" corporations that you exempt from rules you hold others to: overlook that Apple is totally proprietary and secretive; that Google is even more invasive and secretive, can't be relied on for long term commitments in its services, besides gives NSA "direct access"; promote Spotify even though it's just a "new" gatekeeper still based on the game of ripping off artists that create content; and I suppose tomorrow morning you'll again be promoting Kickstarter, even though it accepts ZERO responsibility when people get ripped off.
You just seem to favor big trendy corporations with ridiculously high profit margins.
[ link to this | view in chronology ]
Safety from what?
[ link to this | view in chronology ]
Re: Safety from what?
Another issue is that background checks don't matter if the background-cleared driver lets another drive for him, something that can be very lucrative. It is an issue in traditional taxis too, but judging by how Uber's background check seems to be a one-off thing, I bet it's a bigger issue with them.
[ link to this | view in chronology ]
They are right
[ link to this | view in chronology ]
Standing?
[ link to this | view in chronology ]
Are the taxi comanies prepared for discovery?
[ link to this | view in chronology ]
This seems all well and good until you consider that someone has to be on the receiving end of terrible (and possibly life-threatening) service before the bad seeds are filtered out. And that this has to happen regularly.
It's the same general idea as food inspection and health safety when it comes to food service. I mean, sure, you could have a free market competition system where the unsafe restaurants are filtered out by customer review...unless you're one of the guinea pigs that has to get exposed to unsafe practices before it gets noticed.
Not to say that regulations and inspections ensure safety, especially if they're lax, but it's still better than a system that assumes everyone is safe and honest until they screw up and someone gets hurt.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: Re:
Don't assume so. Listen to podcast 15. They discuss the very basic background checks that Lyft and Uber give. Basically they just assume that if you have a valid drivers licence you are safe enough and a care with four wheels. Taxi drivers (at least Down Under) have a more rigurous procedure.
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re: Re:
https://www.gov.uk/disclosure-barring-service-check/overview
[ link to this | view in chronology ]
Either Uber should have to play by the "big book" or taxis should be allowed to play by the "little book". That would be fair competition, and then any supposedly "superior" features like "better smartphone apps" would not get the unfair focus they do now of being credited as a "reason" for its success.
[ link to this | view in chronology ]
Re: Regulations
They made their bed, now they get to lie in it.
[ link to this | view in chronology ]
That makes no sense. Why pay it then? There must be some nonzero change in your expectations, for you to go out of your way to add $1 to your charge. Accordingly, the expectation that Uber be required to show some sort of nonzero (hopefully, a substantial one) meaning behind such a charge is a reasonable one.
[ link to this | view in chronology ]
Cab companies and drivers have only themselves to blame
[ link to this | view in chronology ]
Re: Cab companies and drivers have only themselves to blame
Long before the existence of Uber, I had a similar problem at an airport in France. It was late at night and the taxi drivers wanted to make their last fares a ride into the center of Paris. My solution was to get into a taxi before telling the driver where I wanted to go.
Some cities require taxi drivers to accept fares if they stop for a potential customer (as long as the destination is within the city).
[ link to this | view in chronology ]
Re: Cab companies and drivers have only themselves to blame
I've never used Uber, Lyft, etc., but it seems very unlikely that ride-sharing services could be worse than traditional cabs. The taxi industry has left itself open to this situation by depending on regulations rather than providing good service to keep competition at bay.
Every time I hear cabs complaining about ride-sharing services, it comes off as petty whining that the legally-enforced oligopolies are threatened, and they might have to actually compete for a change. Every lawsuit that I've read, including this one, just makes the cab companies look worse.
[ link to this | view in chronology ]
Why get a ride in a Taxi, When you can take a NICE CAR.
Me and my fiance started using Uber about 6 months ago and love it. We will go on a date and knowing we will have a few drinks we go on uber app and request a car. You get to choose which vehicle you get to ride in. I like being able to arrive at a restaurant in a nice vehicle instead of a yellow taxi or a prius with a taxi sign on top. Looks like a pizza guy lol. Everytime I have used uber they have let me hook up my blutooth to there stero and play the music I like, also they are always friendly and will talk to you. Have you have that experience with a taxi.
Now they are trying to ban UBER from California. Why would this happen this is the best thing that happened to a car service. You don't have to be embarrassed to show up in a yellow taxi. You get to show up in a nice car. with a well dressed driver as well. We in California like to ride in style and we can't let this happen
[ link to this | view in chronology ]
False advertisment
[ link to this | view in chronology ]