Uber claims rival booked 400,000 fake rides to disrupt service

Ola Cabs

Uber is claiming that Indian rival Ola Cabs, a taxi-hailing service, booked 400,000 fake rides in an attempt to disrupt Uber services in India.

In a complaint filed on March 14 in Delhi’s High Court, Uber alleged that Ola and its employees used 93,000 fraudulent accounts to book more than 400,000 fake rides over a seven-month period.

The company says the fake bookings caused damage to its “business, earnings and goodwill.”

Uber says 23,000 drivers have quit as a result of the targeted campaign.

Uber also accused Ola employees of impersonating Uber managers and sending misleading text messages to its drivers.

Uber is seeking $7.5 million in damages. The next hearing in the case is scheduled for September.

Ola says the lawsuit is “frivolous and false.”

“It is not beyond our imagination that this is an effort to divert attention from the current realities of the market where Uber has faced major setbacks,” the company said in a statement.

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Ola has also went on the offensive, accusing Uber of operating diesel cars in New Delhi in violation of a court order.

Uber is taking its position in India very seriously. The company announced in July 2015 that it would invest $1 billion in the country.

Uber itself was previously accused of booking fake rides to take down its competitors. That accusation was raised by US-based rival Lyft in 2015. At the time of the accusation Lyft said the company booked 5,000 fake trips.

Written by John Howard

John Howard

John Howard is the Business Editor at BusinessPundit.com. He is an avid watcher of markets, a wallflower of retail, and a fan of disruptive businesses that utilize technology and unique ideas to form brilliant new ways of doing business.