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Uber CEO Faces Class-Action Lawsuit Over Price Fixing (engadget.com)

Posted by BeauHD on from the all-about-the-money dept.

An anonymous reader quotes a report from Engadget: Uber CEO Travis Kalanick will go to court over price fixing claims after he initially tried to get the lawsuit dismissed. U.S. district court judge in New York ruled Kalanick has to face the class of passengers alleging that he conspired with drivers to set fares using an algorithm, including hiking rates during peak hours with so-called surge pricing. According to Reuters, district court judge Jed Rakoff ruled the plaintiffs "plausibly alleged a conspiracy" to fix pricing and that the class action could also pursue claims the set rates led to the demise [of] other services, like Sidecar.

6 of 95 comments (clear)

  1. While Uber has definitely engaged... by Type44Q · · Score: 3, Insightful

    While Uber has definitely engaged in some questionable behavior, this isn't it... and IMHO isn't likely to go very far at all, even in New York.

    1. Re: While Uber has definitely engaged... by Anonymous Coward · · Score: 2, Insightful

      How is this not price fixing? Do Uber drivers have the capability to set their own rates -- or are they all colluding and charging the same rate?

    2. Re: While Uber has definitely engaged... by ooloorie · · Score: 2, Insightful

      Do taxi drivers have the capability to set their own rates, or are all the ones working for the same company colluding and charging the same rate?

      There, the price fixing happens via the government. Getting screwed and overcharged is OK if it's the government screwing you and the inflated prices and bad service happen as the result of lobbying and crony capitalism. Progressives, in fact, welcome that.

    3. Re: While Uber has definitely engaged... by ShanghaiBill · · Score: 4, Insightful

      Do taxi drivers have the capability to set their own rates, or are all the ones working for the same company colluding and charging the same rate?

      Neither. The prices are fixed by law. Price fixing is not illegal if the government does it.

    4. Re:While Uber has definitely engaged... by whoever57 · · Score: 4, Insightful

      Perhaps the real purpose of this lawsuit is to put Uber into the position of recognizing that its drivers are not "independent contractors".

      Uber is probably going to attempt some kind of "Schrodinger's driver", where the drivers are simultaneously both contractors and employees.

      --
      The real "Libtards" are the Libertarians!
  2. Re:Why the fuck can't taxies just offer good servi by ooloorie · · Score: 2, Insightful

    Taxi companies have to pay to purchase, service and garage their taxis whereas Uber pays exactly $0 for the above expensive costs, instead it leeches them from the driver. Given the above, since the driver is doing the bulk of the investing of resources, he should get more than the 70%.

    As a driver, you have two choices: you work for a taxi company or you work for Uber/Lyft/... Working for a taxi company, you get about $12/hour, at inflexible working hours and little personal freedom. The benefits of the taxi monopoly do indeed accrue to the "taxi companies", crony capitalists who have managed to snag medallions. Working for Uber, you are probably going to make more than that, even after expenses. But even if you made the same hourly money, you'd still be better off because of better working conditions and more flexibility.

    We can hope there are dozens of internet-taxi booking services like Uber, making their service a commodity.

    There won't be if idiots like you keep supporting crony capitalism and keep creating legal hurdles for companies to jump through. After all the shit that Uber has had to deal with, only a fool would start a competitor.