UPDATED 18:21 EDT / SEPTEMBER 08 2017

INFRA

Uber under FBI scrutiny over ‘Hell’ software it used to track Lyft drivers

Uber Technologies Inc. can’t seem to catch a break. The ride-hailing company is already dealing with both its recovery from a high-profile sexual harassment probe and its ongoing legal battle with Waymo, and now it looks like Uber might also be in trouble with the FBI.

The Wall Street Journal reports that the FBI has launched a probe into Uber’s “Hell” software, which allegedly allowed Uber to track drivers who also worked for rival ride-hailing company Lyft Inc.

According to a report by The Information earlier this year, Uber used its Hell software from 2014 to 2016 to see the locations of Lyft drivers and whether or not they had a rider or were available. Uber then reportedly used this information to push more fares to those drivers in an attempt to woo them away from Lyft.

“We are in a competitive industry,” a Lyft spokesperson said at the time. “However, if true, these allegations are very concerning.”

In April, several Lyft drivers filed a class action lawsuit against Uber, claiming that Uber’s tactic unfairly pulled drivers away from Lyft, “thereby reducing the supply of Lyft drivers, which resulted in increased wait times for Lyft customers and diminished earnings for Lyft drivers.” A judge later agreed with Uber’s request to dismiss the case, but the plaintiffs also have the opportunity to revise and refile the suit, which is reportedly coming later this month.

According to the Wall Street Journal, the severity of the case against Uber depends on whether the FBI determines that the Hell software constitutes unauthorized access to a computer, since users were unaware that Uber had installed tracking software on their mobile devices. An Uber spokesperson said that the company is cooperating with the FBI’s investigation, but the company had no other comment on its use of the software.

Whether or not the FBI’s probe results in any legal consequences for Uber, the investigation is yet another black mark on the company’s public image, which has already taken plenty of hits over the last year. Uber has replaced several of its executives in the wake of its ongoing inner turmoil, including co-founder and now-former Chief Executive Travis Kalanick. Just over a week ago, Uber appointed Dara Khosrowshahi as Kalanick’s replacement, and the new CEO certainly seems to have his work cut out for him.

Photo: Uber

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