Cab Companies Drop Safety Suit Against Uber

SAN FRANCISCO (CN) – A group of cab companies have dropped their lawsuit accusing Uber of making bogus claims about the safety of its rides.

Nineteen cab companies, led by L.A. Taxi Cooperative dba Yellow Cab Co., sued Uber in March 2015, claiming the ride-hailing startup lied about offering “the safest rides on the road” on its website, in advertisements and in media statements.

On Wednesday, the parties filed a stipulation voluntarily dismissing the suit with prejudice, typically a sign that the litigation has been settled out of court.

Attorneys for the cab companies and Uber did not immediately respond to phone calls seeking comment Friday.

In July 2015, U.S. District Judge Jon Tigar refused to dismiss the suit in San Francisco federal court, finding Uber’s statements on safety were “plausibly measurable, factual claims” and not “non-actionable puffery” as Uber argued in its briefs.

The cab companies contended that they offer safer rides than Uber, citing more rigorous background checks, requirements that drivers take safety classes and exams, stricter vehicle inspection standards and rules that forbid employees from working for more than one driving company, which can cause driver exhaustion.

In February 2016, Uber paid $28.5 million to settle two federal class actions accusing the company of misleading consumers about the safety of its service. In that settlement, Uber agreed to stop using the term “safety fee” and instead use the phrase, “booking fee.”

“No means of transportation can ever be 100 percent safe,” Uber said in a statement last year. “That’s why it’s important to ensure that the language we use to describe safety at Uber is clear and precise.”

 

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