(Bloomberg) — Uber Technologies Inc. was sued by more than a dozen California cab companies over claims it falsely advertises its ride-share service as safer than taxis.
Uber misleads customers about the background checks it uses to screen its drivers and doesn't require those contractors to take a driving safety course, according to the complaint filed Wednesday by Yellow Cab Co. and other operators in the metropolitan areas of San Francisco, Los Angeles and Santa Barbara.
Lawsuits against Uber, Lyft Inc. and other car-booking companies have mounted as they seek to crack open the U.S. taxi and limousine market, estimated by IbisWorld Research to be an $11 billion industry. Uber, founded in 2009 and based in San Francisco, is the most highly valued U.S. technology startup. The company raised $1.2 billion in December at a valuation of $40 billion.
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