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CaseNo CGC-12-526Q17
CLASS ACTION
COMPLAINT FOR VIOLATION OF THE UNFAIR BUSINESS PRACTICES
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vs.
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Defendants.
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Plaintiffs allege:
INTRODUCTORY STATEMENT
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1.
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behalf of all others similarly situated, are duly licensed and permitted taxicab drivers,
who are bringing this action to stop Defendant, Uber Technologies, Inc. (hereinafter
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''Uber"), from continuing to act illegally in the City and County of San Francisco, by
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"partnering" with unauthorized and unpermitted drivers to unlawfully compete with law
abiding taxicab drivers. In fact, Uber is acting as a taxicab company while sometimes
denying this fact in order to avoid all regulations governing taxicab companies. 2.
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"Plaintiff Class"), by openly rejecting any notion of compliance with the rules governing
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taxicab services in the City and County of San Francisco (sometimes hereinafter "the
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City"). Uber expressly violates the rules governing taxicab services by, among other
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things, dispatching limousines or "Black Cars," which are not licensed to act as taxicabs,
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in the City, using illegal metering devices, encouraging its "partner" limousine drivers to
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violate the law, and by charging unauthorized rates for its services.
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3.
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Uber s CEO Travis Kalanick has stated publicly that, "I don't understand regulators...
They are incredibly sensitive to what is in the public view. But if you only follow the
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rules, they will never let you make the city a better place." Uber attempts to spin any
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moment to achieve Uber's economic goals. For example, in New York, Uber has
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represented to regulators that its system merely constitutes an advance reservation for livery vehicles, but, when Uber wanted to expand to taxis, it took the inconsistent position that Uber's system is a virtual hail. Ultimately, Uber was forced to shut down
its yellow cab hailing service in New York.
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IS
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PARTIES
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4.
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continuously in the City and County of San Francisco for the last eight (8) years, and has
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operated through a medallion issued to Luxor Cabs, Inc. for the last seven (7) years.
5. Plaintiff Mohammed Eddine is a licensed taxicab driver, and has so acted
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continuously in the City and County of San Francisco for the last fifteen (15) years, and
operates through a medallion issued to Luxor Cabs, Inc. 6. Defendant Uber Technologies, Inc. is a corporation organized and existing
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under the laws of the State of Delaware, with its principal place of business in the City
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and County of San Francisco. State of California. Uber Technologies, Inc. has operated
in the City under the trade name "UberCab," and currently operates in the City under the
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Plaintiffs are ignorant of the true names and capacities of Defendants sued
herein as DOES 1 through 50, inclusive, and therefore sue these Defendants by such
fictitious names. Plaintiffs will amend this complaint to allege their true names and
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capacities when ascertained. Plaintiffs are informed and believe and thereon allege that
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each of such fictitiously named Defendants is responsible in some manner for the
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occurrences herein alleged, and that Plaintiffs' injuries as herein alleged were
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7.
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Plaintiffs are informed and believe and thereon allege that at all times
herein mentioned, Defendants DOES 1 through 50, inclusive, were the agents, servants,
venturers, co-conspirators and partners of each of the other Defendants, and in doing the
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things hereinafter alleged, were acting in the scope of their authority as such agents,
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to said matters complained of herein. Plaintiffs shall hereinafter refer to Defendant Uber Technologies, Inc. and Defendant DOES 1 through 50, inclusive, as "Uber" in the
singular.
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8.
Plaintiffs bring this action on their own behalves and on behalf of all
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persons similarly situated. The class that Plaintiffs represent is composed of taxicab
drivers duly licensed by the San Francisco Municipal Transportation Agency
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(hereinafter "SFMTA"), and who have been operating as such at any time during the period from at least March 30, 2010, through the present. The persons in this class are
so numerous that the joinder of all such persons is impracticable and that the disposition
of their claims in a class action rather than in individual actions will benefit the parties
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and the Court. Furthermore, because the economic damages suffered by the individual
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Plaintiff Class members may be relatively modest, albeit significant, compared to the
said Plaintiff Class to seek redress individually for the wrongful conduct alleged herein.
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issued to the various taxi-cab companies who operate in the City and County of San
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Francisco. Each medallion authorizes the operation of one taxicab, and a taxicab may
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not legally operate in the City and County of San Francisco without a validly issued taxi
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medallion license. The exact size of the Plaintiff Class, and the identity of the members
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of the class are ascertainable from the business records of the various taxicab companies
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which operate in the City and County of San Francisco. There will be no undue
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difficulty in the management of this litigation as a class action. Indeed, Uber has access
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to millions of dollars of seed money to defend itself and to financially overpower the
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Plaintiffs if they are forced to bring individual actions against DefendantUber. It has
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been reported that Uber raised close to $50 million in financing from such heavy hitters
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yellow-taxi-cab-service-in-new-york-city, as well as
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http://articles.businessinsider.com/201 l-12-07//tech/30484347_l_uber-works-mobiletechnology-techcrunch#ixzz29zYT3md.
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10.
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could tend to establish inconsistent standards of conduct for Uber and to result in the
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impairment of class members' rights and the disposition of their interests through
actions to which they were not parties. Moreover, questions of law and fact common to
the Plaintiff Class exist that predominate over questions affecting only individual members, the claims asserted herein are typical of the claims of the members of the Plaintiff Class as described in this Complaint, the claims arise from the same course of
unlawful conduct by Uber, and the relief sought is common.
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GENERAL ALLEGATIONS
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party carrier includes "limousines," which are sometimes referred to in the vernacular as
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"Black Cars," See 5371.4(i) of the California Public Utilities Code. The applicable
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statutes and regulations preclude as a matter of law the use of a limousine bearing a
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permit from the CPUC from performing taxicab functions in the City. For example, a
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Black Car must provide prearranged service, including the maintenance of a waybill, and
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may not have meters or roof lights so as to distinguish these vehicles from those that can
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respond to "on demand" street hail service. Thus, pursuant to Public Utilities Code
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5351, et seq., a CPUC authorized limousine or Black Car is not permitted to engage in
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Uber, which holds itself out to the public, and acts as a transportation
company using "partner" drivers of Black Cars and other types of vehicles, is not licensed as a charter party carrier by the CPUP for any type of service.
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within the City. In order to ensure that the public has access to a safe and uniform
means of vehicle-for-hire transportation with respect to both the licensing and regulation
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of taxicabs, the SFMTA has developed a regulatory scheme to protect the riding public.
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In order to drive or operate a taxicab in the City, one must obtain a permit. See San
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Medallion or Ramp Taxi Medallion (permit issued by the SFMTA to operate a particular
taxi vehicle that is specially adapted with access for wheelchair users), that is legally authorized to pick up passengers within the City, with or without prearrangement, of a distinctive color or colors and which is operated at rates per mile or upon a waiting-time basis, or both, as measured by a Taximeter, and which is used for the transportation of
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passengers for hire over and along the public streets, not over a defined route, but as to
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the route and destination, in accordance with and under the direction of the passenger or
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As described above, the SF Code also regulates taxi drivers in the conduct
of their operation of taxies within its jurisdiction. For example, requirements imposed
on drivers of taxicabs by the SF Code include, but are not limited to:
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refuse, or direct or permit the refusal, of prospective passengers in any place within the
City for transportation to any other place in the City ... if the prospective passengers
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present themselves for transportation in a clean, coherent, safe and orderly manner and
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for a lawful purpose, and the Driver has sufficient time before the end of his or her shift;'
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wheelchair or other mobility device ... that can be transported within the confines of the
vehicle's trunk and/or passenger areas;"
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person with a physical disability in the front seatif necessary to accommodate the
passenger's physical disability;
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Section 1108(e)(16), provides that a driver shall not add a tip to a fare
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unless expressly and voluntarily offered by the passenger, and is forbidden from
demanding, requesting, implying, assuming or otherwise suggesting that he should
receive any amount in excess of the authorized fare;
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Section 1108(e)(19), requires the driver to carry sufficient cash to make Section 1108(e)(35),(36), requires that the driver accept a paratransit debit
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card associated with the paratransit program, which provides transit services for disabled
individuals.
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Section 1113(c)(l)(A)(B) and (c)(2), requires that all taxis have the vehicle
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number positioned in particular places on the taxicab, and the words "San Francisco
Taxicab" must appear on the each taxicab at designated places, and further identifying
. requirements are set forth at 1103(c)(3)-(8) and at (d)(l),(2);
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valid seal from the Department of Public Health Weights and Measures and all such
taximeters must meet the approval of the SFMTA.
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Section 1113(j)(2)(A),(B), mandates that all taxis and ramp taxis must be
equipped with a working top light containing a light or lights permanently attached to
the roofof the cab containing the words "Taxicab" or "Taxi," and the top light must be
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illuminated at all times except when the vehicle is engaged in transporting a passenger;
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Section 1113(m)(l), provides that all taxis and ramp taxis must be Section 1119(a)-(e), sets forth the procedure for imposing administrative
equipped with an operational security camera manufactured after December 31, 2006;
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enforcement by the SFMTA against those who are not permit holders; and,
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Section 1124(a),(b), sets forth the fares that taxis and ramp taxis can charge
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their passengers.
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As per its website, Uber markets itself to the public as an "elite" public
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transportation company that provides through its "partner drivers" taxi-like on-demand
services to consumers through the use ofa GPS enabled smartphone application. In fact,
Uber is not licensed for any type of service either as a limousine service by the CPUC or
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as a taxi company by the SFMTA. Uber admits it is operating as a taxi service in San Francisco, even though Uber is not licensed by the SFMTA to do so. Uber utilizes Black Car and gypsy vehicle drivers to perform as taxicab drivers, and thus requires its Black Car drivers to follow procedures in violation of SF Code. Uber's Black Car drivers pick up fares by street hail or e-hail in violation ofSFMTA rules. Uber is not
licensed by the SFMTA to offer any taxi related service whatsoever.
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Car drivers, such drivers are required to operate in violation ofthe SF Code, as set forth
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in pertinent part, supra. On Uber's website (www.uber.com/cities/san-francisco), Uber represents that, in San Francisco, it provides "UberX" vehicles, which are a cheaper Black Car option and seat up to four (4) people; a classic black sedan, which is Uber's
default option and also seats up to four (4) people; and, SUV vehicles, which seat up to
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six (6) people. Indeed, the website invites members of the public to: "Hop into the
sleek Black Car, tell the driver your destination, and you'll be on your way." The
website also represents that: "Uber is your on-demand private driver. Request a ride at
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any time using our iphone and Android apps or from rn.uber.com." The website
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additionally states that: "After the ride, Uber will automatically charge the credit card
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you have on file. There's no need to hand your driver any payment, and the tip is
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included. Of course, drivers always appreciate a 'thank you.'" Thus, Uber is utilizing
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Black Cars without meeting any of the basic requirements of any controlling regulatory
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agency. Further, on information and belief, Uber also utilizes "gypsy" vehicles, owned
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by Uber's "partners," which do not and cannot qualify even as "limousines" or "Black
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Cars" pursuant to CPUC regulations. These gypsy vehicles are employed as functioning
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agency whatsoever.
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The Uber website also sets forth its pricing information with respect to each
of these vehicles, that starts with a basic fare and then adds a per-mile rate within San
Francisco, a per-mile rate outside of San Francisco, a per-minute rate, a minimum fare,
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as well as a cancellation fee. Uber's website also sets forth flat rates for certain
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destinations, such as a trip between San Francisco and the San Francisco International
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Airport, and between San Francisco and the Oakland Airport. The consumer can only
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pay by credit card. The consumer is not permitted to pay in cash as required by the SF
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Code. Uber Black Cars acting as taxicabs promulgate fares which are measured
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through a smartphone application, which utilizes GPS enabled iphones in Black Cars or
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gypsy cars to determine distance and fares, in direct violation of the SF Code since the
GPS devices act as illegal meters for taxi services. Accordingly, the rates charged by
Uber do not correspond with the provisions of the SF Code, unfairly competes with the
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governmentally regulated Plaintiff Class and are not measured pursuant to an approved
taximeter as required by the SF Code. The illegal meters also violate the CPUC
regulations.
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19. Even though Uber functions, in all respects, as a taxicab company, it
claims that it is not a transportation company for the purpose of avoiding compliance
with any regulatory agencies, including the SFMTA and the CPUC. For example, Uber does not require that its drivers accept fares to underserved areas of San Francisco, that
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its drivers provide service to disabled individuals, and that its vehicles contain the
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identifying information required (such as a top light and words identifying the vehicles
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Uber receives requests for taxi services from a customer; Uber transmits (dispatches) this request for taxi service to an independent
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"partner" driver in a Black Car with whom Uber has a written contract for service and
revenue sharing; and,
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the customer.
Thus, Uber provides the same service as a taxicab company through its drivers,
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while evading any responsibility for the requirements imposed on drivers of taxicabs and
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Uber's business model is built upon deceiving the public, ignoring public
safety regulations, circumventing legally established rates and pricing models, dodging
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taxes and fees imposed on other public transportation providers, and shifting all risks and
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liability to others. In fact, Uber's widely stated mission is to "disrupt" the established
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Uber has intentionally and knowingly encouraged Uber Black Car drivers
to unlawfully compete with properly licensed taxicab drivers for passengers, and to provide taxicab services in direct violation of the SF Code.
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that are illegal per se and that directly impact the legitimate taxicab drivers. While Uber's conduct misleads the passenger public, it significantly interferes with the business
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of the legally authorized taxicab drivers who make up the Plaintiff Class by unfairly
competing with said drivers. Simply stated, Uber's "partner" drivers, who are operating
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without restriction, are taking passengers, and thus income, away from legally sanctioned
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taxicab drivers who are literally playing by the rules. Moreover, Plaintiffs have suffered,
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and continue to suffer, unproductive taxi lease expenses, increased taxi fuel expenditures,
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and other related out-of-pocket costs, as a direct and proximate result of Uber's illegal
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conduct. Accordingly, Plaintiffs have suffered, and continue to suffer, injuries in fact as
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prohibit Uber from conducting an unlawful business in violation of the Public Utilities
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private attorney general theory pursuantto Code of Civil Procedure 1021.5, or through
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the common fund or substantial benefit theories as established by the Courts of this
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State.
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this Complaint, and make them a part hereof as if fully set forth herein. 26. As set forth, supra, Uber has engaged, and continues to engage, in unlawful
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business practices that are illegal per se. While Uber's conduct misleads the passenger
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public, it significantly interferes with the business of the legally authorized taxicab
drivers who make up the Plaintiff Class. That is, Uber has been, and is currently,
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engaged in unfair competition within the meaning of Business and Professions Code
17200, et seq, and Plaintiffs have suffered injuries in fact, including but not limited to a
loss of income and out-of-pocket expenditures as a direct and proximate result of Uber's
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unpermitted taxi service in the City. Plaintiffs are informed and believe that Uber will
continue to commit those acts unless the Court orders Uber to cease and desist.
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this Complaint, and make them a part hereof as if fully set forth herein. 28.
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Plaintiffs and the passenger public through its illegal acts as set forth, supra. Indeed,
Uber's widely stated mission is to "disrupt" the established regulated taxi operations and
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Further, unless restrained, Uber will continue to operate outside of the law,
and interfere with Plaintiffs' economic relationships with its passengers to Plaintiffs'
great and irreparable injury, for which damages would not afford adequate relief. Thus,
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Plaintiffs are entitled to an injunction to stop Uber's unlawful acts as set forth, supra.
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ACCOUNTING
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32.
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this Complaint, and make them a part hereof as if fully set forth herein.
33. The amount of Plaintiff s damages cannot be assessed or ascertained unless
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and until there is an accounting of Uber's receipts and disbursements with respect to its
operations in the City and County of San Francisco. 34. Plaintiffs did not demand an accounting considering Uber's highly public
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statements about its views on regulations. As Uber believes that it is above the law, any
such demand would have been futile.
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DECLARATORY RELIEF
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Complaint, and make them a part hereofas if fully set forth herein.
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Uber concerning their respective rights and duties. On the one hand, Plaintiffs contend
that Uber is intentionally, unlawfully and unfairly competing with Plaintiffs by the use of
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Black Cars as illegal taxicabs in derogation of the SF Code, and that Uber is operating as
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a taxicab company without any of the restrictions that govern taxicab drivers (as well as
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taxicab companies). On the other hand, Uber denies that it is a taxicab company subject
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circumstances in that declaratory relief would have the practical effect of informing the
parties' future conduct and by removing the financial burden being caused by the
unsettled state of affairs.
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38.
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employees, and all persons acting under or in concert with them, to cease and desist from
the following acts:
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a.
Class,
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b.
Plaintiff Class.
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2.
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For the payment of the plaintiffs attorney's fees under one of the theories
For costs of suit herein incurred; and
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For such other and further relief as the court may deem proper.
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For an Order requiring Uber to show cause, if any it has, why it shouldnot
For a preliminary injunction and a permanent injunction, each enjoining For the payment of the Plaintiffs attorney's fees under one of the theories
Uber from Utilizing Black Cars as taxicabs in direct competition with Plaintiff Class; 5.
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6.
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For any other and further relief as the court may deem proper.
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2.
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forth above;
For the payment of Plaintiffs' attorneys fees under one of the theories set
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5.
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6.
For any other and further relief as the court may deem proper.
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1.
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3.
Uber from Utilizing Black Cars as taxicabs in direct competition with Plaintiff Class;
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forth above; 5. For their costs incurred; and
For the payment of Plaintiffs' attorneys fees under one of the theories set
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For any other and further relief as the court may deem proper.
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