Uber faces battles on many fronts as valuation skyrockets

10th Dec 2014
Uber faces battles on many fronts as valuation skyrockets

Despite a recent funding round valuing the company at close to $40 billion, life is not as rosy as might be expected at internet-based taxi firm Uber.

The company is fighting battles around the world, with authorities in San Francisco and Los Angeles the latest to take legal action against the firm.

District attorneys in the cities Uber made “untrue or misleading representations” regarding the quality of its own background checks on drivers.
They argue the company used the Uber app to calculate fares based on time and distance without obtaining approval from a California agency to do so, while also charging an “airport fee toll” to customers even though drivers were not paying the airport.

Uber is also accused of conducting commercial operations at California airports without authorisation.

At the same time, Uber has been banned from operating in New Delhi following the alleged rape by a driver of a female passenger.


A judge in Madrid has also ordered a temporary halt to the service and Thai authorities say the firm lacks proper registration and insurance.

Uber is yet to comment on the latest legal cases against it.

Other US cities have also begun legal action against Uber.

Since its launch the business, which uses a smartphone app to connect riders with drivers, has proved hugely controversial.

In Europe, registered taxi drivers’ unions have staged strikes and protests against what they see as light regulation of Uber and similar services.


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