The situation could turn dire for the emerging ride-sharing business if the report coming from the Wall Street Journal proves accurate. Citing a letter sent by district attorneys of San Francisco and Los Angeles, companies such as Sidecar, Uber Technologies and Lyft, could face legal actions.
The legislators have accused Sidecar and its rivals – Uber and Lyft – of violating California’s business law and could face an injunction. The Wall Street Journal also quoted a spokesperson for the San Francisco district attorney’s office saying that all three services are facing the threat of legal action.
George Gascon and Jackie Lacy, district attorneys of San Francisco and Los Angeles respectively, have reportedly demanded Sidecar to stop its carpooling service, which violates a public code that doesn’t allow ride sharing service providers to ask money from more than one person for the same journey.
The attorneys also claim the company has not disclosed the truth about how thorough Sidecar does the background check on its drivers’ criminal and driving records.
Services such as Uber, Sidecar and Lyft have been hit by worldwide protests of cabbies and limo service drivers, claiming the merging internet/smartphone service violates taxi rules and also breaks numerous safety and licensing laws.