L.A. Taxi Cooperative, Inc. v. Uber Technologies, Inc.

114 F. Supp. 3d 852, 2015 U.S. Dist. LEXIS 94181, 2015 WL 4397706
CourtDistrict Court, N.D. California
DecidedJuly 17, 2015
DocketNo. 15-CV-01257-JST
StatusPublished
Cited by23 cases

This text of 114 F. Supp. 3d 852 (L.A. Taxi Cooperative, Inc. v. Uber Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L.A. Taxi Cooperative, Inc. v. Uber Technologies, Inc., 114 F. Supp. 3d 852, 2015 U.S. Dist. LEXIS 94181, 2015 WL 4397706 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS

JON S. TIGAR, District Judge

Before the Court is a motion to dismiss filed by Defendants' Ubér Technologies, Inc., Rasier, LLC, and Rasier-CA, LLC. ECF No. 16. For the reasons set forth below, the Court will grant the motion in part and deny it in part.

I. BACKGROUND

A. Factual Allegations

For the purpose of deciding this motion to dismiss,-the Court accepts as true the following allegations from Plaintiffs’ com-plairit. See ECF No. 1.

Plaintiffs are nineteen California corporations and limited liability companies that provide "taxi services throughout California, including San Francisco County, Los Angeles County, and San Diego County. Compl. ¶¶4, 11-29, 34. Defendant Uber Technologies, Inc. (“Uber”) is a transportation network company that uses a-smart phone application (“app”) to connect passengers looking for -rides with drivers willing to provide rides. Id. ¶¶ 5, 30. Defendants Rasier, LLC and Rasier-CA, LLC are subsidiaries of Uber. Id, ¶¶-31-32. The parties operate in the same cities and counties, and vie for the same customers. Id. ¶¶ 36-37.

[857]*8571. Statements Relating to Safety

As part of its advertising campaign, Uber makes various statements about the safety of rides on Uber’s platform, and disparages the safety of rides offered by taxi cab companies. Id. ¶ 1. For example, Uber’s website boasts that it offers the “SAFEST RIDES ON THE ROAD” and that Uber is “GOING THE DISTANCE TO PUT PEOPLE FIRST.” Id. ¶42. The website also states, “Wherever you are around the world, Uber is committed to connecting you to the safest ride on the road. That means setting the strictest safety standards possible, then working hard to improve them every day.” Id. ¶ 43. It promises, “SAFE PICKUPS,” with “No more waiting alone on a dark street hoping you can hail a taxi.” Id. ¶ 46.

Uber’s blog, which is easily accessible from its website, includes the following statement from Uber’s Head of Communications — North America, Lane Kasselman:

Uber works hard to ensure that we are connecting riders with the safest rides on the road. The current efforts we are undertaking to protect riders, drivers and cities are just the beginning.
We’ll continue innovating, refining, and working diligently to ensure we’re doing everything we can to make Uber the safest experience on the road.

Id. ¶ 44. Another statement on the blog, issued after an Ubér driver struck and killed a six-year old girl, reads, “We are committed to improving the already best in class safety and accountability of the Uber platform, for both riders and drivers.” Id. ¶ 45.

Statements concerning safety also appear in information provided to Uber customers by email after they complete'a ride using Uber. Id. ¶¶ 47-48. The email message includes a bill with a fare breakdown, including a $1.00 “Safe Rides Fee.” Id. ¶ 48. Customers who click on a question mark next to the words “Safe Rides Fee” are directed to a website that includes the following information:

From the beginning, we’ve always been committed to connecting you with the safest rides on the road. The Safe Rides fee is a fee added to uberX fares on behalf of drivers (who may pay’this fee to Uber) in' cities' with uberX ride-sharing. This Safe Rides Fee supports continued efforts to ensure the safest possible platform for Uber riders and drivers.... For complete pricing transparency, you’ll see this as a separate line item on every uberX receipt.

Id. ¶¶ 49-50.

Uber’s advertising campaign emphasizes the rigor of its background checks for drivers. Id. ¶ 55. The website promises, “BACKGROUND CHECKS YOU CAN TRUST,” explaining that “Every ridesharing and livery driver is thoroughly screened through a rigorous process we’ve developed using constantly improving standards_” M ¶ 56. Until at least October 29, 2014, the website stated, “Every ridesharing and livery driver is thoroughly screened through a rigorous process we’ve developed using industry-leading standards.” Id. ¶ 57 (emphasis added).

On Uber’s blog, Kasselman elaborates on Uber’s background check procedure:

All Uber ridesharing and livery partners must go through a rigorous background check. The three-step screening we’ve developed across the United States, which includes county, federal, and mul-tistate checks, has set a new standard .... We apply this comprehensive and new industry standard consistently across all. Uber products, including uberX.
Screening for safe drivers is just the ■beginning of our safety efforts. Our process includes prospective and regular [858]*858checks of drivers’ motor vehicle records to, ensure ongoing safe driving. Unlike the taxi industry, our background checking process and standards are consistent across the United States and often more rigorous than what is required to. become a taxi driver.

Id. ¶ 58. Until .at least-December 10,2014, this post stated that Uber drivers “must go through a rigorous background check that leads the industry.” Id. 1Í.59. Similarly, until October 2014, the website explaining the “Safe Rides Fee” stated that the fee “supports our continued efforts to ensure the safest possible platform for Uber riders and drivers, including an industry-leading background check process.” Id. ¶ 60.

In addition, Uber has made statements to the media concerning the superior safety of Uber rides. These statements include the following statement made by an Uber representative to NBC’s Detroit affiliate:

What I can tell you is that Uber takes passenger safety very seriously. We work every day to connect riders with the safest rides on the road and go above and beyond local requirements in every city wé operate.
Uber only partners with drivers who pass an industry-leading screening that includes a criminal background check at the county; federal and multi-state level going back as far as the law allows. We also conduct ongoing reviews of drivers’ motor vehicle records during their time as an Uber partner.
For more information on what makes Uber the safest rides on the road, please see our .website.,..

Id. ¶ 63. An April 29, 2014, article entitled “Faulty Background Checks May Put UberX Passengers at Risk, Report Says,” similarly quotes an Uber representative as stating:

Uber’s industry-leading background checks help connect consumers with the safest ride on the road.... Our driver partner background .checks are more thorough than those of taxi [sic] in most cities. We continue to improve and are always working hard to , tighten our policies and processes to ensure that Uber remains the safest transportation option available.

Id. ¶64. Finally, a June 25, 2014, NBCBayArea.com news report quotes an Uber representative as saying, “We’re confident that every, ride on the Uber platform is safer than a taxi.” Id. ¶ 65.

2. Practices and Policies Relating to Safety

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114 F. Supp. 3d 852, 2015 U.S. Dist. LEXIS 94181, 2015 WL 4397706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-taxi-cooperative-inc-v-uber-technologies-inc-cand-2015.