The Sidecar CEO said, “We think their claims are incorrect and their assertions that we are operating illegally are simply incorrect.”
The cities of San Francisco and Los Angeles have issued cease-and-desist orders to ridesharing companies Uber, Lyft, and Sidecar, and other cities are following suit.
California district attorneys from San Francisco and Los Angeles conducted a joint investigation and found several practices in these companies that violated California law, as reported in SFGate.com.
The complaints are that all three companies are misleading customers into believing their drivers have been screened, but they have hired drivers with drug violations including DUIs, sexual assault crimes, and other crimes.
The companies also are illegally tallying the fares of their customers.
These practices, say prosecutors, are “a continuing threat to consumers and the public.”
While Uber and Lyft did not immediately respond, Sidecar forwarded its letter to the media and claimed its policies were not what the letter dictated. Sidecar CEO Sunil Paul has asked to meet with the district attorney offices; he believes their accusations are “shocking and baffling.”
“We need to make sure the safety and well-being of consumers are adequately protected,” said San Francisto District Attorney George Gascón.
Gascón has asked the companies to remove all statements from their publications that claim the background checks conducted on their drivers revealed their complete criminal history.
The three companies earlier this month all received letters from the California Public Utilities Commission that explained what aspects of their carpool services were illegal under state law.
The Sidecar CEO said, “We think their claims are incorrect and their assertions that we are operating illegally are simply incorrect.”
The CEO may in fact be on to something: A California Public Utilities Commission officer, according to SFGate.com, said the current laws were not created with shared ride services in mind, but are there to prevent limousine drivers from poaching passengers from shared-ride services. The official said sending the letters warning the ride-share companies of these laws was just as much a message to state legislature to update those laws.
Uber and Lyft have been accused also of failing to be regulated by the state’s Department of Food and Agriculture’s weights and measures division to ensure the taxi miles the customers are paying for are accurate. The companies also have failed to get proper licenses for pickups and drop-offs at airports.
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