Rosen v. Uber Technologies, Inc.

164 F. Supp. 3d 1165, 2016 U.S. Dist. LEXIS 21960, 2016 WL 704078
CourtDistrict Court, N.D. California
DecidedFebruary 23, 2016
DocketCase No. 15-cv-03866-JST
StatusPublished
Cited by6 cases

This text of 164 F. Supp. 3d 1165 (Rosen 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
Rosen v. Uber Technologies, Inc., 164 F. Supp. 3d 1165, 2016 U.S. Dist. LEXIS 21960, 2016 WL 704078 (N.D. Cal. 2016).

Opinion

ORDER GRANTING MOTION TO DISMISS AND DENYING MOTION TO STRIKE

JON S. TIGAR, United States District Judge

Before the Court is Defendants’ Motion to Dismiss and Motion to Strike. ECF No. 22. For the reasons stated below, the Motion to Dismiss is granted and the Motion to Strike is denied. The Court also grants Defendants’ requests for judicial notice.

I. BACKGROUND

Plaintiff Stewart Rosen, the owner of a permitted taxicab medallion number 684, seeks to bring a class action against Defendants Uber Technologies, Inc., Rasier, LLC, and Raiser-CA, LLC (“Uber”). ECF No. 1 ¶¶ 1-6. Uber is a transportation network company that offers a smartphone application to connect passengers looking for rides with drivers looking to provide rides. Id. ¶ 6. Plaintiffs claims are based on two aspects of Uber’s conduct: first, its alleged failure to comply with applicable California Public Utilities Commission (“CPUC”) regulations for taxi and other transportation companies; and second, its alleged misrepresentations in regards to its “safe rides fee.”

A. Factual Background

For the purposes of deciding this motion to dismiss, the Court accepts as true the following allegations from Plaintiffs’ complaint. See ECF No. 1.

1. Allegations Regarding CPUC Regulations

Plaintiff, as an operator of a taxi, is a competitor to Uber “seeking] the same dollars from the same set of customers.” Id. ¶ 27. Plaintiff alleges that from the beginning of the class period until April 7, 2014, Uber “was unregulated and operating illegally in the State of California” as a transportation company, “unfairly causing injury to the Plaintiffs.” Id. ¶ 16. Uber was issued cease and desist orders by the CPUC and the San Francisco Metropolitan Transit Authority (“SFMTA”) in October 2010, a CPUC citation in November 2012 for operating and advertising as a charter-party carrier, and a Division of Management Standards (“DMS”) notice that it was . in violation of “various rules and regula- ' tions.” Id. at ¶ 10-11. In January 2013, the CPUC announced that it had agreed to evaluate services like Uber and was sus[1168]*1168pending its cease and desist order and its citation. Id. at ¶ 12. On September 19, 2013, the CPUC “approved a ‘decision adopting rules and regulations to protect public safety while allowing new entrance to the transportation industry.” Id. at ¶ 13. The CPUC authorized Uber to operate as a “Transportation Network Company” (“TNC”), provided that it comply with the CPUC’s decision and “was otherwise legally operating.” Id.

On April 7, 2014, the CPUC issued a “Class P public transportation permit” to Uber’s California subsidiary, Raiser-CA, allowing the company to operate as a TNC. Id. at ¶ 14. The CPUC found that Uber itself, however, “is not a TNC and deferred any non-TNC related issues, including UBER’s potential status as a charter-party carrier of passengers (“TCP”), to a later date.” Id.

Plaintiff alleges that on June 10, 2014, the CPUC wrote to Uber about numerous complaints, such as that Uber was ignoring safety rulers, that Uber drivers had been operating at airports without permits, and that some Uber drivers did not have proof of insurance or valid driver’s liecenses. Id. at ¶ 19. He further alleges that Uber is operating in violation of “Public Utilities Code § 411” and that its new service UberPool, which allows users to share rides, is in violation of “Public Utilities Code § 5401.” Id. at ¶¶ 21-22. He also alleges that Uber has made “thousands of unauthorized trips to the San Francisco International Airport” and that it has failed to submit its app to the DMS for evaluation. Id. at ¶¶ 23-24.

2. Allegations Related to Safe Rides Fees

Plaintiff alleges that 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. For example, Uber’s website boasts that it offers the “safest rides on the road” and that Uber “is committed to setting the bar for safety and continuing to raise it.” Id. ¶ 30. The website also stated, until at least June 2, 2015, “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. ¶ 33. It emphasized that Uber provides “safe pick ups,” with “No more waiting alone on a dark street hoping you can hail a taxi.” Id. ¶ 36.

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. ¶ 34. Another statement on the blog, issued after an Uber 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. ¶ 36.

Statements concerning safety also appear in information provided to Uber customers by email after they complete a ride using Uber. Id. ¶¶ 37-38. The email message includes a bill with a fare breakdown, including a $1.00 “Safe Rides Fee.” Id. ¶ 38. Customers who clicked on a question mark next to the words “Safe Rides Fee” were, until at least March 2015, directed to a website that includes the following information:

[1169]*1169From 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. ¶ 40.

Uber’s advertising campaign emphasizes the rigor of its background checks for drivers. Id. ¶ 43. The website explains that “Every ridesharing and livery driver is thoroughly screened through a rigorous process we’ve developed using constantly improving standards....” Id. ¶ 45 (emphasis added in complaint). 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. ¶ 46.

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-ti-state 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 checks of drivers’ motor vehicle records to ensure ongoing safe driving.

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Bluebook (online)
164 F. Supp. 3d 1165, 2016 U.S. Dist. LEXIS 21960, 2016 WL 704078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosen-v-uber-technologies-inc-cand-2016.