Uber sues Indian competitor over fake rides and accounts

Uber is claiming that Indian taxi-hailing rival, Ola Cabs, booked 400k fake rides in an attempt to disrupt Uber services in India. In a complaint filed on 14 March in Delhi’s High Court, Uber alleged that Ola and its employees used 93k fraudulent accounts to book more than 400k fake rides over a seven-month period. The company says the fake bookings damaged its “business, earnings and goodwill” and is therefore suing for $7.5m in damages. Ola has declared the charges to be “frivolous and false”. Some readers may remember Uber faced the very same charges last year when it was accused of the same tactics by American rival Lyft.

Uber's troubles in India preceded this lawsuit. According to press reports, 62 Uber motorcycle taxis were confiscated recently, along with 24 vehicles from other operators in Bangalore, forcing both Uber and Ola to close up shop there. The confiscations were reportedly related to permitting issues. Also Uber isn't the only company to accuse Ola of unethical business practices. Jugnoo, an auto rickshaw aggregator, claims that Ola was behind a surge of fake bookings, an accusation that Ola denies. The main difference, though, is that Jugnoo has not taken its beef with Ola to the courts. The case between Uber and Ola is scheduled to be heard in September of this year.