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Uber, Lyft Duke It Out Over Ride Sharing

 & Stephanie Mlot Contributor

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Ride-sharing services have been battling city and state taxi commissions for the right to operate, but in the case of Lyft and Uber, they are also battling each other.

The app-based car services have been locked in a feud since early this month, when Uber forbid drivers from working with another company, specifically competitor Lyft (pictured).

According to CNNMoney, Uber told drivers that regulators like the New York Taxi and Limousine Commission prohibit them from working with other ride-sharing services. But the TLC said that's not true, adding that many drivers participate in multiple taxi services to earn as much money as possible.

But Uber reportedly took it one step further. Data provided to CNN by Lyft shows that 177 Uber employees ordered and then canceled more than 5,000 rides around the country. The tactic essentially stalls Lyft drivers, forcing customers to turn to other services, like Uber. Those who don't cancel the rides often take short, low-profit trips, during which they pitch Lyft drivers on the benefits of Uber, CNN reported.

In a statement provided to the New York Times, however, Uber suggested that Lyft was sabotaging itself so that Uber would acquire it. "A number of Lyft investors have recently been pushing Uber to acquire Lyft," Uber told the paper. "One of their largest shareholders recently warned that Lyft would 'go nuclear' if we do not acquire them."

Lyft, however, told the Times that "our 'nuclear' strategy is continuing to take market share with 30 percent month-over-month growth, while building the strongest community of drivers and passengers."

Neither Uber nor Lyft immediately responded to PCMag's request for comment.

This isn't the first time Uber has been accused of playing dirty: The news site previously reported 100-plus canceled ride requests in three days via the Gett taxi app.

The battle comes as both ride-sharing services recently unveiled new carpooling options: UberPool versus Lyft Line. Each provides users with shared rides along shared routes at a discounted price.

About Our Expert

Stephanie Mlot

Stephanie Mlot

Contributor

My Experience

  • B.A. in Journalism & Public Relations with minor in Communications Media from Indiana University of Pennsylvania (IUP)
  • Reporter at The Frederick News-Post (2008-2012)
  • Reporter for PCMag and Geek.com (RIP) (2012-present)

My Areas of Expertise

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  • Cars & Auto
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