Uber Faces FBI Probe Over Program Targeting Rival Lyft
Apparently, federal law-enforcement authorities in New York are investigating whether Uber Technologies Inc. used software to interfere illegally with its competitors, adding to legal pressures facing the embattled ride-hailing company and its new chief executive.
The investigation, led by the Federal Bureau of Investigation’s New York office and the Manhattan US attorney’s office, is focused on a defunct Uber program, known internally as “Hell,” that could track drivers working for rival service Lyft Inc., apparently. “Hell” worked like this: Uber created fake Lyft customer accounts, tricking Lyft’s system into believing prospective customers were seeking rides in various locations around a city. That allowed Uber to see which Lyft drivers were nearby and what prices they were offering for various routes, similar to how such information appears when an authentic Lyft app is opened on a user’s smartphone. The program was also used to glean data on drivers who worked for both companies, and whom Uber could target with cash incentives to get them to leave Lyft, said these people, who added that the program was discontinued in 2016.
Uber Faces FBI Probe Over Program Targeting Rival Lyft