# Sidecar says Uber ‘took illegal steps to undermine’ competitors in new lawsuit



## BurgerTiime (Jun 22, 2015)

https://techcrunch.com/2018/12/11/sidecar-says-uber-took-illegal-steps-to-undermine-competitors-in-new-lawsuit/amp/









Sidecar, an early player in the ride-hailing business, is suing Uber, claiming the billion-dollar business "stifled competition in the market for ride-hailing applications," according to a lawsuit filed in the U.S. district court in San Francisco on Tuesday - first reported by Reuters.

The company, co-founded by Sunil Paul  in 2011, alleges Uber "used a number of tactics that are against the law to drive Sidecar out of business," per Paul's blog post published this morning. Sidecar had raised a total of $43 million in venture capital backing and operated its service in 11 U.S. markets before shutting down and selling its assets to GM in 2016.

"We fought hard in the marketplace, and were the first company to introduce a number of cutting-edge features that are now a part of every ride-hailing app," Paul, Sidecar's former chief executive officer, writes. "If Uber had won the ride-hailing market on a level playing field, we would have been disappointed, but that's something we could have lived with. That's not what happened."

Specifically, Paul alleges Uber used predatory pricing strategies, i.e. subsidized rides and driver payments in order to drive other ride-hailing startups out of the market, and "interfered with the performance and quality of competing ride-hailing apps by using clandestine campaigns to send fraudulent ride requests through competitors' ride-hailing apps."

A spokesperson for Uber told TechCrunch that "Sidecar's lawsuit has it backwards."

"Ridesharing is a highly competitive industry, with many players coming and going over the years - like Sidecar, not all have survived," they said. "Sidecar's lawsuit has it backwards: new competitors, along with low prices, benefit consumers and reflect the exact type of competition that the antitrust laws are meant to protect. We believe the timing of this complaint, filed three years after Sidecar went out of business, is not a coincidence."

It's been almost three years since Sidecar sold its remaining assets to GM; it's safe to say Paul and co. have been less than fond of Uber for several years. In another blog post announcing the GM sale, Paul wrote: "We failed - for the most part - because Uber is willing to win at any cost and they have practically limitless capital to do it." So why is Sidecar suddenly getting litigious? Could be because Uber filed confidentially for an initial public offering on Friday. The IPO, slated for the first quarter of 2019, is expected to be one of the largest and highly anticipated technology exits in the last decade.

Uber has raised a total of nearly $20 billion in a combination of debt and equity funding and was most recently valued at $72 billion. Sidecar's valuation, according to PitchBook, peaked at around $70 million in 2014. It was backed by GV, Lightspeed Venture Partners, Union Square Ventures, Richard Branson and other notable investors.

Uber has long been known for its scandalous reputation, especially while under the leadership of founding CEO Travis Kalanick, whose business tactics have been called into question countless times.


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## RDWRER (May 24, 2018)

So it sounds like basically Uber is admitting to the claims, spinning them as a “benefit” to consumers...


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## Pax Collector (Feb 18, 2018)

Get ready for another multi million dollar payout by Uber like they did with Waymo.


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## uberdriverfornow (Jan 10, 2016)

hopefully this spurs some sort of major investgation of Uber and Lyft

we know they are illegally collaborating


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## BurgerTiime (Jun 22, 2015)

This is actually fascinating considering Sunil Paul is Indian and it's against his moral ethics on suing people and the karma lifestyle he abides by. He held the patent on push to order transport through app https://en.m.wikipedia.org/wiki/Sunil_Paul He never went after Uber nor Lyft. He's been interviewed on the stance. This must have everything to do with initial investors. GM now owns the patent and would be interesting to see what they do with it.


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## Brooklyn (Jul 29, 2014)

Uber/Lyft/Sidecar/Whoever the hell else is out there undercut the taxi industry- "It's innovation!... it's brilliant! this is technology! taxis are dinosaurs and 'ridesharing' is innovation!"

Uber/Lyft/Sidecar/Whoever the hell else is out there undercut each other- "IT IS PREDATORY! YOU CANNOT DO THIS!"

Sunil Paul needs to sit down.. as much as I agree the pricing model is predatory and all of that.. Sidecar or any of these other apps have no room to talk. Just because an app company did what you were doing on a larger scale doesn't make you a victim.


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## KevinH (Jul 13, 2014)

Take a look at the lawsuit itself. Very interesting analysis of Uber's pricing history:
https://www.scribd.com/document/395467480/Sidecar-v-Uber


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## Disgusted Driver (Jan 9, 2015)

KevinH said:


> Take a look at the lawsuit itself. Very interesting analysis of Uber's pricing history:
> https://www.scribd.com/document/395467480/Sidecar-v-Uber


Yes, I particularly like paragraph 8:
*That plan has now come to fruition. Since Sidecar wound down its operations in December 2015, Uber has increased passenger prices in each of the markets where it was facing competition from Sidecar, without offsetting those increased fares with higher payments to drivers. Indeed, Uber has

reduced 
driver payments at the same time it has raised passenger prices. Without competition from Sidecar to keep its prices in check, Uber now is imposing its will on both passengers and drivers in the form of higher, supra-competitive prices.
*
There's no doubt that's what's going on and in paragraph 9 they talk about Uber's sabotogue by ordering fake rides from competitors. I know they did this to Lyft drivers, if Sidecar has any evidence of them doing it to them this Lawsuit might be big time.


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## BurgerTiime (Jun 22, 2015)

I’ve never seen a company do so much illegal activity including total disregard for public safety and that includes the death of several and NOBODY has been prosecuted. They simply pay fines and keep it moving. They’ll pay a fine/judgment and to the same


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## Hans GrUber (Apr 23, 2016)

BurgerTiime said:


> I've never seen a company do so much illegal activity including total disregard for public safety and that includes the death of several and NOBODY has been prosecuted. They simply pay fines and keep it moving. They'll pay a fine/judgment and to the same


That being said, the one thing you have to give Travis credit for is that is personality was EXACTLY the one needed to make Uber the 'success' it is today. I'm not saying I agree with the ethics or morals he uses while conducting business, but his complete disregard of local authorities and regulations created a consumer outcry that forced the hand of policy makers. Again, I think this is the epitome of everything wrong with capitalism in 2018, but Uber successfully penetrated every major market thanks to this headstrong approach. I sincerely hope I see the day when Uber faces it's comeuppance and is replaced by a FAIR 'rideshare' system.


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## Stevie The magic Unicorn (Apr 3, 2018)

Hans GrUber said:


> That being said, the one thing you have to give Travis credit for is that is personality was EXACTLY the one needed to make Uber the 'success' it is today. I'm not saying I agree with the ethics or morals he uses while conducting business, but his complete disregard of local authorities and regulations created a consumer outcry that forced the hand of policy makers. Again, I think this is the epitome of everything wrong with capitalism in 2018, but Uber successfully penetrated every major market thanks to this headstrong approach. I sincerely hope I see the day when Uber faces it's comeuppance and is replaced by a FAIR 'rideshare' system.


And unicorns frolic in the rainbow pools and I walk with both legs through candy cane forest.

Great fantasy but eventually every drug trip comes to an end.

The ideal outcome would be a system that allows independent owner operator taxis with a not-for-profit global dispatch company. (With any proceeds going to a driver welfare fund)


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## uberdriverfornow (Jan 10, 2016)

You'll note that if it was proven that Uber screwed Sidecar, then the fact that they didn't screw Lyft means its proof that Uber and Lyft must be working together in a back room handshake agreement.


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## peteyvavs (Nov 18, 2015)

Pax Collector said:


> Get ready for another multi million dollar payout by Uber like they did with Waymo.


Correction, Uber drivers payout.


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## tohunt4me (Nov 23, 2015)

BurgerTiime said:


> https://techcrunch.com/2018/12/11/sidecar-says-uber-took-illegal-steps-to-undermine-competitors-in-new-lawsuit/amp/
> 
> 
> 
> ...


I thought " SIDECAR" sold the office furniture 5 years ago !

Cease & Desist Dec.30 , 2015.

They trying to beat California statute of limitations ?


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## Pax Collector (Feb 18, 2018)

peteyvavs said:


> Correction, Uber drivers payout.


True. Drivers still foot the bill indirectly.


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## TwoFiddyMile (Mar 13, 2015)

Delicious. All the pidgeons are coming home to roost.


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