Is Uber The Tesla Motors Of The Transportation Industry?

The ride sharing company Uber is being sued, again. This time, the suits come from multiple large cities on the same day. Uber allows smartphone users to connect with citizen drivers (called Uber Partners) via their app. Consumers can get a quote on their desired ride and then get picked up and taken to their destination. This all happens via smartphone. It’s an invasive technology, invasive enough that Uber is the Tesla Motors of the ride-sharing industry. Uber is constantly being sued. Much like dealer groups sue Tesla Motors on a state-by-state level for their direct-to-consumer sales, Uber is sued seemingly on a city-by-city basis, worldwide for their ride sharing. The problem for Uber is that their drivers aren’t licensed or regulated by the government. That has spelled problems for an organization that was valued at $18.2 billion by investors this past summer. We reported previously that the city of Las Vegas had sued Uber. Fast forward just a few weeks and Portland is pursing legal action against the ride sharing company. San Francisco and Los Angeles are also legally opposing Uber.

On December 8^th, the city of Portland sued Uber for failing to follow city regulations. The suit alleges Uber isn’t complying with the city insurance and permit requirements. Portland Mayor Charlie Hales said, “Good regulations make for a safer community. Uber disagrees, so we’re seeking a court injunction.” Monday was a busy day for legal action against Uber. The district attorneys of San Francisco and Los Angeles filed a lawsuit against Uber. Their allegation is the digital car service misled the public about their driver background checks and didn’t have their fees approved by the state. Uber disputes their claim. Uber spokeswoman Eva Behrend issued a statement saying, …”Uber is an integral, safe, and established part of the transportation ecosystem in the Golden State. Uber has met with the District Attorneys to address their concerns regarding airport operations, the uberPOOL product, background checks, and operation of the app.”

Uber will continue to be sued, city-by-city. There is always backlash against the government on social media when the lawsuits happen. What do you think of Uber’s decision to push forward even as they are constantly facing legal action? Does ride-sharing benefit or hurt dealers long-term?