Beacon Transcript – The oldest San Francisco cab company, Flywheel has decided to sue Uber over alleged monopolizing market practices.
Flywheel seems to be just the latest to add to the list of Uber contesters. According to Hansu Kim, Flywheel CEO, Uber is responsible for the reduction in the number of taxi clients and is prone to using unlawful practices.
The car-sharing service Uber has been raising controversies ever since its appearance. Be it the lack of city authorizations and basically illicit transportation, unlawful competition claims, or driver complaints, the company has already been involved in a number of debates and lawsuits.
Flywheel or as it was previously named, DeSoto Cab, is also recognized as being San Francisco oldest functioning taxi company and was rebranded following its partnership with the Flywheel Software Inc. whose app now allows for a mobile summon of the cabs.
According to their declarations, ever since the UberX services first appeared in the city back in 2012, the taxi industry has marked a 65 percent drop in the number of customers.
Flywheel stated in their lawsuit petition that the car-sharing company offers unlawful practices as it offers a 10 to 45 percent lower initial price for a ride that taxis cannot compete with.
The cab company argues that Uber is able to offer these prices thanks to its other sources of income, as the company should also have other investors so as to be able to cover the ride costs.
Some other issues in line with pricing costs and the drivers’ earning reports are mentioned, as well as the fact that Uber may be misrepresenting the safety measures for this means of transportation.
The Flywheel lawsuit would demand a $5 million compensation sum and also for Uber to follow and allow for an even ground, and equal chances in the transportation domain, according to the law.
Flywheel also reportedly believes that the car-sharing company is seeking to establish a monopoly over their area and drive out its competition.
Uber was said to give a general statement to Flywheel’s accusations as it keeps its ground and declares that whilst it competes with a number of various other transportation means, it still means to offer the best alternative to the need for a private car.
The company has been introducing new options for both drivers and customers as it allows both a larger degree of liberty. Following another lawsuit, Uber now allows it drivers to decline rides without being taxed.
The customers also have a wider range of services as it introduced the UberX, UberPool, and other similar services including rides meant for special occasions such as getting flu shots, as it also intends to continue lowering its prices.
What does the reader think about the Flywheel claims? Could they be right in their claims of an Uber monopoly, or is it just a resort for trying to re-enter the market and explain its falling numbers?
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