Uber 'hired sex offenders and a murderer' - lawsuit "What do registered sex offenders, a kidnapper, identity thieves and a convicted murderer have in common?" asks CNN Money. They "all passed Uber's background checks in California".
The latest controversy involving the ride-hailing service Uber came to light when Los Angeles and San Francisco's attorneys general filed an update to a lawsuit filed last yeat, alleging 25 "instances where Uber's background checks failed to turn up felonies, misdemeanor charges and citations in its drivers' pasts".
The claim acknowledges that Uber's background checks, which do not use federal and state databases and go back only seven years, comply with the law, but alleges that the cases show its customer safety claims are "false and misleading".
It's just the latest court action for the company in California, where it is also appealing against a fine of $7.3m for for failing to comply with regulations on the reporting of safety and accessibility data. In another legal battle, it is fighting against a claim that it should treat its drivers as employees rather than freelancers, in a case that could undermine its entire business model.
Outside California, Uber is locked in regulatory wrangles around the world. Its app has been banned in several countries after protests that the company has an unfair advantage over licensed taxis and minicabs, which must comply with much more stringent regulations. Cab drivers have organised protests in London, but British authorities have so far declined to prosecute the company.
Uber is also facing criticism over the 'surge' pricing it operates at times of high demand, which resulted in fares tripling during the recent Tube strike in London. CNET says New York's mayor Bill de Blasio is reviewing two legislative proposals to outlaw or cap the practice.
But despite its legal troubles, Uber continues to expand rapidly. A presentation for Chinese investors, seen by Reuters, suggests it will increase global revenues from around $2.5bn to $11bn this year and that it could seek a stockmarket flotation as soon as 2017. It is in particular focusing on key emerging markets such as China and India, where it recently received an investment from a fund run by the country's largest company, Tata Group.
http://www.theweek.co.uk/uber/58491/ube ... er-lawsuit
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