On Friday, Uber filed a lawsuit accusing it of using illegal predatory pricing and other anticompetitive practices to stifle competition and shut down rival Sidecar, Reuters reported. Joseph Spero, chief assistant judge in federal court in San Francisco, said Sidecar’s successor, SC Innovations, could join other smaller competitors, including Lyft, to prove Uber’s attempts to monopolize the ride-sharing industry or prevent other competitors from growing.
An Uber spokesman declined to comment. Spero dismissed an earlier version of the lawsuit on January 21.
Sidecar was founded in 2012 and for the first time in the app shows passengers the price of a ride before a taxi ride, and offers a ride-sharing service for passengers. Sidecar, also headquartered in San Francisco, ceased operations in 2015 and sold the company’s assets to GM the following year.
According to the lawsuit, Uber initially offered drivers higher-than-market incentives while lowering passenger fees in order to gain more market share, and then, after consolidating its market position, reduced driver incentives and increased passenger fees through “peak rides” and “dynamic” pricing to compensate for previous losses.
Uber has also been accused of using projects such as Project Hell and SLOG to trick drivers and passengers into using Uber by quietly taking orders on rival apps and then withdrawing them.
“At this stage, the court considers That Sidecar’s allegations are sufficiently reasonable and will not be dropped,” Spero wrote.