Uber and India’s Ola battle it out in a $7million lawsuit
Uber is suing its main competitor Ola, claiming the company has made more than 90,000 fake accounts with the purpose of hindering business and irritating drivers.
These alleged “fake accounts” have lead to an overwhelming 400,000 “fake bookings” which were canceled at the last minute. The Uber drivers have been left out of pocket and Uber stated around 20,000 drivers have quit their positions. They are frustrated that both their time and potential earnings have been wasted.
In the past nine months Uber has invested a staggering $1billion into the growth of the company and as a result their market share increased from 5percent in January 2015 to around 50percent market share – equal to OlaCabs.
In a statement made by Ola representatives, the company claims that the allegation made were “an effort to divert attention from the current realities of the market where Uber has faced major setbacks.”
The companies are currently involved in a separate court case. Ola has accused Uber of ignoring a law in Delhi which requires cabs to stop using diesels and believes that the recent claim from Uber is an attempt to re-gain the lost market share and power.
In the lawsuit filed by Uber, they ask for over $7million in damages, in order to repay the drivers and train the lost staff.