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Sunday, December 15, 2019

Driver alleges Uber's newer, cheaper UberX service came at expense of UberBlack drivers

Federal Court

By Marian Johns | Nov 20, 2019

Uber 1280

ATLANTA (Legal Newsline) – A Georgia Uber driver alleges that the ride-hailing service orchestrated a "bait and switch scheme" to attract drivers of higher-end luxury vehicles with UberBlack and then added a newer, cheaper service, UberX.

Jean Deverze filed a complaint Sept. 27 in the Cobb County Superior Court against Uber Technologies Inc., Raiser LLC, Raiser-CA LLC and Travis Kalanick alleging breach of implied covenant of good faith and fair dealing, civil conspiracy and breach of contract and conversion. 

Deverze alleges he became an UberBlack driver after attending a driver recruitment event in August 2014. He claims after financing a Chevy Suburban from one of Uber's "approved" partners, he discovered the vehicle was defective and subject to a recall. He alleges a lot of his profits went back into repairing the vehicle.

The plaintiff alleges within a few months after the recruit meeting, Uber launched UberX to offer similar services for nearly half of the fare.

"It appeared that Uber was deliberately and intentionally attempting to make the UberBlack service a rarely used service and promote UberX instead and the plaintiff alleges that his was in fact the intention of Kalanick and Uber all along," the suit states.

The suit states UberX steered customers away from UberBlack drivers. The plaintiff alleges had he known UberX would be offered a few months after signing up for UberBlack, he would not have made the investments in the business.

Deverze seeks damages, a trial by jury and other just relief.

The case was transferred to the U.S. District Court for the Northern District of Georgia on Nov. 4.

U.S. District Court for the Northern District of Georgia case number 1:19-CV-04988-CAP

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U.S. District Court for the Northern District of GeorgiaUber Technologies Inc

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