Uber Exercises Extensive Control Over the DaytoDay Operations of RasierCA Uber’s control over the transportation services provided by RasierCA is extensive. The evidence is undisputed that: TNC drivers who want to obtain passengers from Uber must enter into a Software License and Online Services Agreement with Uber or a Transportation Provider Service Agreement with Rasier, LLC, an Uber subsidiary. Any passenger wishing transportation service with RasierCA via the Uber App must download the passenger version of the Uber App to a smartphone and create an account with Uber. Uber ensured that “its TNC subsidiary Rasier LLC (together with RasierCA, LLC) procured a commercial insurance policy with $1 million in coverage per incident.” Wayne Ting, Uber’s General Manager, verified RasierCA’s Verified Statement in the hearing on Order to Show Cause Why RasierCA Should Not Be Held in Contempt. Uber sets the fares it charges riders unilaterally. Uber bills its riders directly for the entire amount of the fare charged. In looking at similar control over daytoday operations, courts have concluded that the subsidiary is a mere instrumentality of the parent. For example, in TohoTowa Co., Ltd. v. Morgan Creek Productions, Inc., (2013) 217 Cal. App. 4th 1096, 1109, the court held that two corporations were the alter egos of Morgan Creek International (Distributor) and thus liable for failure to pay plaintiff on a movie distribution deal. First, the court determined that there was a significant unity of interest and ownership between Distributor and Morgan Creek International LTD (Guarantor) and Morgan Creek Productions (Parent) because Parent used the two corporations as shells to avoid liability. (Id. at 1102.) The owner of the three entities made all the decisions through Parent
Uber Exercises Extensive Control Over the DaytoDay Operations of RasierCA Uber’s control over the transportation services provided by RasierCA is extensive. The evidence is undisputed that: TNC drivers who want to obtain passengers from Uber must enter into a Software License and Online Services Agreement with Uber or a Transportation Provider Service Agreement with Rasier, LLC, an Uber subsidiary. Any passenger wishing transportation service with RasierCA via the Uber App must download the passenger version of the Uber App to a smartphone and create an account with Uber. Uber ensured that “its TNC subsidiary Rasier LLC (together with RasierCA, LLC) procured a commercial insurance policy with $1 million in coverage per incident.” Wayne Ting, Uber’s General Manager, verified RasierCA’s Verified Statement in the hearing on Order to Show Cause Why RasierCA Should Not Be Held in Contempt. Uber sets the fares it charges riders unilaterally. Uber bills its riders directly for the entire amount of the fare charged. In looking at similar control over daytoday operations, courts have concluded that the subsidiary is a mere instrumentality of the parent. For example, in TohoTowa Co., Ltd. v. Morgan Creek Productions, Inc., (2013) 217 Cal. App. 4th 1096, 1109, the court held that two corporations were the alter egos of Morgan Creek International (Distributor) and thus liable for failure to pay plaintiff on a movie distribution deal. First, the court determined that there was a significant unity of interest and ownership between Distributor and Morgan Creek International LTD (Guarantor) and Morgan Creek Productions (Parent) because Parent used the two corporations as shells to avoid liability. (Id. at 1102.) The owner of the three entities made all the decisions through Parent
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