Regulations

Uber, Lyft Dramas Unfold As Regulators Press TNCs

Posted on May 8, 2014

Is it time for Uber CEO Travis Kalanick to take a deep breath?
Is it time for Uber CEO Travis Kalanick to take a deep breath?

It's been a week of cascading developments across the ground transportation app spectrum, as governments grapple with disruptions and safety issues concerning the real-time, on-demand transportation network companies:

Lawsuits Escalate: If cab companies and state officials get their way, they’ll regulate ride-sharing service Uber to death. Ambitious transportation startup Uber now faces at least 13 active lawsuits in the U.S. and is under fire from 11 state insurance agencies over its insurance practices. Business Insider article here

Midwest Madness: If you've been keeping tabs on the controversy surrounding peer-to-peer ride-sharing service app Lyft in St. Louis, you'll remember that Lyft's day in court was pushed back to May 14 and the restraining order against the service remains intact. But that doesn't mean that controversy over the service isn't cropping up elsewhere. Here's what's going on in Kansas City, Chicago and St. Louis. St. Louis Business Journal article here

San Antonio Might Impound Lyft, Uber Vehicles: Chief William McManus said Wednesday that the Police Department might impound vehicles belonging to Lyft and Uber drivers if they continue to violate the city's regulations for vehicles for hire, such as taxis and limos. Govtech.com article here

Lyft Adds Higher End SUV Service: Lyft’s forthcoming premium SUV service will cost twice as much as normal Lyfts, but comes with extra perks, says a Lyft contractor who refused to be named as the plans are still private. Techcrunch.com article here

Hold The Pastries! Uber X Drivers Protest Uber! The company tried to assuage drivers demanding better pay and treatment for work done through Uber's low-price ride-sharing platform with pastries, as San Francisco general manager Ilya Abyzov met with protestors face to face. TIME Magazine article here

Uber Gets Massive Valuation With Google Help: Fast-growing taxi alternative service Uber made news as AllThingsD confirmed the company has raised more than $360 million at an eye-popping valuation of $3.5 billion. It’s incredible for a company that didn’t exist when President Obama was inaugurated for his first term, but it also raises the question of whether such a number can possibly be justified. Forbes Magazine article here

Uber Thunder From Down Under: Victoria Australia's Taxi Directorate has begun a crackdown on Melbourne Uber drivers, fining them $1700 each for operating a taxi service illegally, with total fines apparently equalling over $50000. In response, Uber has shut down its Melbourne service. Slashdot.org article here

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