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Uber facing commercial litigation over unfair competition

| May 12, 2020 | Commercial Litigation |

The business world is full of competition. While most entrepreneurs and seasoned business owners understand this aspect, they also expect other companies to act in fair and legal ways. Unfortunately, not all businesses carry out fair competition practices, and as a result, commercial litigation may be necessary.

Texas readers may be interested in a case that was recently allowed to move forward in another state. According to reports, Sidecar Technologies is suing former competitor Uber Technologies after the latter company allegedly caused the former to go out of business. Sidecar began operations in 2011 and was one of the early ride-share companies. However, the company claims that Uber’s predatory pricing and other unfair competition practices caused it to go out of business.

Sidecar claims that Uber offered lower prices to customers and higher pay to drivers but intended to raise prices and cut pay after the competition had been eliminated. The report indicated that Sidecar’s initial lawsuit against Uber was dismissed, but a new suit was approved as the judge believed that the claims were plausible should the facts alleged be proved in court. It was unclear what damages Sidecar may be pursuing with the suit.

Unfair competition can wreak havoc on a company, and as this case shows, it may be worthwhile to pursue legal action for the damages such actions cause. If Texas business owners believe that their companies were harmed due to the actions of another company, it may be wise to consider their legal options. Commercial litigation is not to be taken lightly, but in some cases, it may be necessary.