WASHINGTON, Nov 25 (Reuters) - A group of technology
companies that make apps for taxi-hailing services is facing a
new lawsuit for allegedly colluding with Uber ( UBER ) to keep
passenger prices artificially high around the United States.
The proposed class action, filed on Monday in the federal court
in Manhattan, accused Curb Mobility, Flywheel Technologies,
Creative Mobile Technologies and its subsidiary ARRO of
violating antitrust law through a business partnership with Uber ( UBER )
that integrated their technology into its app.
The lawsuit alleged the arrangements have led to "uniform or
near-uniform pricing" between Uber ( UBER ) rides and taxis booked using
Uber ( UBER ) or the defendants' apps.
The plaintiff, a resident of New York, asked the court to grant
class action status for potentially millions of ride-hail
customers in New York, Chicago, San Francisco, Boston, Seattle
and Washington, D.C.
A Curb spokesperson in a statement said the company does not
comment on pending litigation.
Creative Mobile and Flywheel did not immediately respond to
requests for comment. Uber ( UBER ), which is not a defendant, did not
immediately respond to a request for comment.
Kyle Roche, an attorney for the plaintiff, in a statement
said the lawsuit "aims to restore a fair marketplace and hold
the companies accountable."
Uber ( UBER ) has lured away rides from traditional taxis since its
launch in 2009. Regulatory changes later allowed taxis to match
Uber's ( UBER ) pricing transparency and flexibility.
But taxi-hailing apps stopped competing with Uber ( UBER ) and instead in
2022 merged services with the company, the lawsuit alleged.
"By doing so, the defendants traded their growing competitive
momentum for access to Uber's ( UBER ) scale and revenue streams,"
according to the lawsuit. The integration allowed Uber ( UBER ) to
"suppress competition that would otherwise have constrained
prices and benefited consumers," the complaint said.
The complaint contends the alleged ride-hailing cartel has
raised fares, reduced consumer choice and entrenched Uber's ( UBER )
dominance.
The lawsuit asks a judge to award unspecified monetary damages
and to issue a court order requiring greater competition.
The case is Brendan Kretschmer v. Curb Mobility LLC et al, U.S.
District Court, Southern District of New York, No.
1:25-cv-09758.
For the plaintiff: Kyle Roche and Edward Normand of Freedman
Normand Friedland, and Don Bivens of Don Bivens PLLC
For defendants: No appearances yet