Lyft, Uber and other ride-hailing services are denying they are competing with Amazon and Google in the transportation industry, according to a report.
Uber and Lyft are facing criticism over allegations of price gouging, overcharging for rides, and failing to disclose their own profit margins.
The companies are facing legal challenges in the United States, as well as an investigation by the Federal Trade Commission (FTC).
Uber and Lyft both deny any wrongdoing.
The FTC investigation was prompted by a complaint by the Transportation Alternatives Action Fund (TAAF), a nonprofit group dedicated to combating high-cost transportation in the U.S.TAAB filed its lawsuit against Uber and its chief executive officer Travis Kalanick in January, alleging the companies were engaged in price gouting and violating antitrust laws.
The suit also accused Kalanik of being a “competitor” to Google and Lyft and engaging in unfair and deceptive business practices.
Uber, Lyft and other transportation services are facing accusations of price-gouging, price-shifting and overcharging, the lawsuit alleges.
Uber, for example, charges passengers an additional $1 for every $1 of Uber’s operating expenses and the two companies have each made $2 billion in profits since 2013.
Lyft is currently ranked fifth in the industry by revenue and is valued at more than $2.3 billion.
Lyft and Uber are both based in San Francisco, but their operations are based in New York City and Austin, Texas.
The FTC investigation, however, found that Lyft’s and Uber’s drivers made more than 80 percent of their earnings from fares.
Uber drivers also are required to wear seat belts, have access to health care, pay the same minimum wage and have the same protections against workplace discrimination as Uber drivers.TRAILRIDE: Uber, Google, Lyft in a PickleThe FTC’s investigation also found that Uber and UberX drivers had lower health insurance premiums than comparable Lyft and Google drivers.
Uber has a $10-per-ride discount on Lyft’s plan.
Uber also agreed to provide the FTC with information on its driver-partnership program, which gives drivers a choice between Uber and competing ride-sharing services.
Uber and Google are also providing driver-related data to the FTC.
The complaint also accuses Uber and the companies of violating antitrust law by selling a monopoly on transportation services and failing or failing to publicly disclose profits and expenses.
TAAB is also suing Uber and Kalanidzki over their alleged role in a class action lawsuit filed against Uber last year.
Uber did not immediately respond to a request for comment.
A spokeswoman for Uber declined to comment, saying the company does not comment on ongoing litigation.