Uber Surge-Pricing Antitrust Suit Green-Lighted by Judge
http://www.bloomberg.com/news/articles/2016-03-31/uber-antitrust-lawsuit-over-pricing-green-lighted-by-judge
by Erik Larson and Patricia Hurtado
Updated on March 31, 2016 3:20 PM EDT
U.S. District Judge Jed Rakoff in Manhattan on Thursday denied Kalanicks bid to dismiss a proposed class-action lawsuit claiming the technology in Ubers popular ride-hailing app is used to illegally coordinate high surge-pricing fares.
Rakoff rejected Kalanicks assertion that a conspiracy involving hundreds of thousands of drivers was wildly implausible and physically impossible, an argument the executive made in filings since the suit was filed in December.
The capacity to orchestrate such an agreement is the genius of Mr. Kalanick and his company, which, through the magic of smartphone technology, can invite hundreds of thousands of drivers in far-flung locations to agree to Ubers terms, the judge said.
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Meyers lawsuit seeks damages on behalf of millions of U.S. riders who rely on the worlds largest ride-hailing company, and opens a new line of legal attacks on sharing-economy businesses. Uber faces other lawsuits and regulatory challenges over its business model, including demands by its drivers to be classified as employees instead of independent contractors.
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