This Letter To The Justice Department Could Be Uber's Worst Nightmare
In the letter - sent to Holder last Friday - Joe Jordan says that Uber is actually violating federal law.
Jordan left his post as president of the Limousine Association of Houston in March 2011 to start the "Limo Insider Report," a site dedicated to limo and taxi industry news - it has a marked anti-Uber bent. So yes, he is a former lobbyist for an industry that wants to see Uber die. You should take his letter with a pinch of salt.
On the other hand, government intervention is the main threat to Uber. There is only one reason Uber operates in San Francisco and New York but not in Las Vegas or New Orleans - in the latter cities, government has made Uber illegal.
Taxi lobbyists want Uber to abide by the same laws that taxi companies have to. That includes licensing all cars and drivers, providing cars with access for the disabled and not discriminating against riders from minority neighborhoods. Uber can't guarantee any of these things.
"UBER is totally illegal and has overwhelmed the law enforcement, transportation and airport authorities all across America," Jordan wrote in a letter to Holder, provided to Business Insider. "The situation has gotten completely out of hand and will only get worse without Federal Intervention."
It's not clear whether the Department of Justice even read this complaint. But this is how DOJ investigations get started - by people complaining in writing. If the DOJ were to take any of this seriously, it could mean bad news for Uber.
In New York for instance, the New York Attorney General Eric Schneiderman is investigating whether Uber's surge pricing is actually legal.
So even if this letter to Holder produces no response, it still underlines to biggest weakness in Uber's business model: It's vulnerability to the lobbying of established taxi companies and the government regulation that might produce.
Business Insider has reached out to the DOJ and will update this story if we hear back.
Here's the full letter:
FORMAL COMPLAINT AGAINST UBER TECHNOLOGIES
Sent by CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Hon. Eric Holder
Attorney General of the United States
U.S. Department of Justice
950 Pennsylvania Ave NW
Washington DC 20530-0001
Dear Attorney General Holder,
I am writing you today as a concerned citizen and Licensed Limousine Operator.
In order for me to engage in the business of transporting the public for hire over
US Roads, I have to be licensed, drug tested, fingerprinted and have a full
FBI background investigation. My cars have to be inspected and I must carry
first-dollar commercial livery insurance that is in force 24/7/365.
There are companies in San Francisco that claim to be "Ridesharing Companies"
or an "Internet platform connecting drivers with passengers". These companies
are dispatching specific vehicles, collecting the fare by credit cards and paying
the drivers. These companies are in fact actual Limousine and Taxicab companies,
but are crossing state lines and evading all laws, regulations and insurance
requirements.
Here are some of the ways UBER Technologies is violating Federal Law:
1) UBER discriminates against handicapped persons in violation of the Americans
with Disabilities Act (ADA). They do not have a single wheelchair accessible
vehicle anywhere in the USA. UBER also refuses to let people with seeing
eye dogs ride in their cars.
2) UBER discriminates against blacks, Latins and minorities by refusing to enter
"Undesirable" neighborhoods for pickups or drop-offs. (Taxicab companies by
law must go to any address requested).
3) UBER's App has secret codes for rating passengers. This could be for people
of color, bad tippers, old people needing help getting in and out of the car, etc.
Again, racial profiling and discrimination.
4) A prominent Houston regulator was on a recent visit to Washington DC and
told us he used the UBER App to get a ride. He asked the driver if he had
licenses and insurance. The driver replied, "Yes but not for this jurisdiction.
UBER encourages us to cross state lines and go where they need more cars.
They say they will pay our tickets if we get caught"
5) UBER misclassifies its drivers as "Independent Contractors" when in fact,
they are working as employees. Using the IRS 21 point checklist, you will
see that UBER micro-manages drivers, trains them and has them do things
only employees do. No UBER driver has workers comp. If they are injured
in an auto accident, UBER will not help them or pay any of their medical
expenses.
6) Distracted Driving. In order to use the UBER App, a driver must always be
focused on the smart phone screen and a GPS screen. This distraction was
listed as a probable cause of a fatal accident on new Year's Eve when an
UBER driver ran over and killed a six year old girl.
7) Evasion of USDOT insurance requirements. UBER is sending commercial
vehicles across state lines without proper insurance. The insurance they do
have is a surplus commercial liability line that is not real car insurance.
Several states have issued warnings about UBER's fraudulent insurance.
http://www.idahostatesman.com/2014/05/22/3197321/ride-share-services-such-as-uberx.html?sp=/99/103/
8) FORMAL RICO CHARGES AGAINST UBER. There are three active Federal Lawsuits
against UBER,in Houston, Chicago and Connecticut.
http://mobile.bloomberg.com/news/2014-05-22/uber-lyft-face-racketeering-lawsuit-by-connecticut-cab-groups.html
UBER goes into cities like Bonnie and Clyde and just starts operating illegally. City, County and
State law enforcement and transportation agencies and airport authorities are overwhelmed
and need Federal Assistance to control this illegal plague of unlicensed pirate taxis sweeping
the nation.
9) ILLEGAL STOCK FRAUD. UBER claims to have ten billion dollars in Venture capital, yet
there is no SEC filing on obtaining these funds. The venture capital investors knew or should
have known that UBER is considered totally illegal in 13 states but provides them with funds to
operate anyway. This is aiding and abetting a continuing criminal enterprise.
10) UBER cars cross the Canadian border and operate illegally there. The whole operation
is controlled and manipulated from offices in San Francisco. So here you have not only
crimes committed by illegal unlicensed vehicles crossing state lines; but international
borders as well. This is undisputedly within the jurisdiction of the U.S. Department of Justice.
http://toronto.ctvnews.ca/unlicensed-uber-car-service-facing-charges-1.1835374
11) UBER FREELY ADMITS THEY ARE FLAUNTING THE LAW.
Here are some troubling quotes by the UBER CEO, Travis Kalanick:
a) On the UBER website investor blog, he states: "We will begin operations
in any city where we perceive there to be little or no enforcement of
transportation law".
b) "If they don't enforce, they must endorse" (Our behavior)
c) "A Cease and Desist letter only means "You shouldn't be doing that",
but we say, oh yes we should".
SUMMARY: UBER is totally illegal and has overwhelmed the law enforcement,
transportation and airport authorities all across America. The situation has gotten
completely out of hand and will only get worse without Federal Intervention.
Already one six year old girl has been run over and killed and an UBER driver
has been charged with rape of a passenger. There also allegations of massive
bribery of public officials.
RECENT OBSERVATIONS OF THE U.S. DEPARTMENT OF JUSTICE:
1) There is a link on the USDOJ website listing the accomplishments since
you took the office of Attorney General. These are impressive and certainly
something you should be proud of:
http://www.justice.gov/accomplishments/
The latest update was July of 2013, however. Don't you feel it would be nice to make a
major arrest and successful conviction of a group of people who brag about breaking
state and federal laws while getting away with it?
2) Attorney General Holder, your recent article on "Nobody Too Big to Jail"
was certainly a bold statement and in a perfect world, would make many
things right and secure your place in history as a great Attorney General.
http://www.huffingtonpost.com/2014/05/05/doj-too-big-to-jail_n_5267238.html?icid=maing-grid7%7Cmain5%7Cdl11%7Csec3_lnk4%26pLid%3D472520
UBER claims to have ten billion dollars in capital. Their major investors are
Goldman Sachs, Google and Amazon. How about it, Mr. Attorney General,
are those people "Too Big to Jail"? We are waiting..........
HERE IS THE SOLUTION: Everyone is annoyed by constant complainers
who never seem to have an answer for all the problems they experience
in life.
The crux of the matter is that UBER cars use a smartphone for assignments.
City, county and state governments do not have the electronic resources
to see the extent of the problem, identify the cars and drivers and issue
them tickets. The cars are undetectable to the naked eye.
The National Security Agency (NSA) does have these resources and while
the military and intelligence communities are constrained by the Posse
Comitatus Act, there is a program called CALEA. (Communications Assistance
to Law Enforcement Agencies).
As a former Senior Intercept Analyst at NSA, I can assure you that my colleagues
there could easily solve this conundrum for you in very short order. I would be glad
to recommend some of the right people to talk to at the Puzzle Palace at Ft Meade
if you have difficulty pursuing this.
FINAL THOUGHTS: Your job description, more than any other person in government,
is to ensure justice, law and order and see to it that people and corporations behave
and operate in ways that maintain and enhance the American Way of Life.
Here in Houston, the commencement ceremony was recently held at Texas
Southern University, which is predominantly minority. The speaker was prominent
Houston attorney Joe Jamail.
1985, a Texas jury returned a $10.53 billion verdict for Jamail's client, Pennzoil Co., against Texaco Inc.
It remains the largest verdict upheld on appeal in legal history anywhere in the world. ...
In his closing comments, Mr. Jamail commented on his life experiences and
people and events that shaped him. One was his parent's admonition, "Always
be outraged at injustice; an injustice to anyone anywhere is injustice to
everyone everywhere"
If you could define UBER with one word; it would be INJUSTICE.
Attorney General Holder, all Americans in their heart of hearts want to be proud
of you. You only have a relatively small amount of time left to ensure your place
in history as a man of honor, integrity and a man who had the courage in the face
of great opposition from those who would tell you to look the other way as you
pushed them aside and did what needed to be done anyway.
It is our sincere hope that you take this issue up and return the
transport of the public to conform to established laws and regulations
designed to protect public safety, prohibit discrimination and enhance
the efficient movement of people in commerce across state lines.
You have the power to make this a reality if you choose to do so.
The eyes of Texas, and the rest of the country, are upon you.
Respectfully,
Joe L. Jordan, Editor
Limoinsider Report
14173 Northwest Freeway #166
Houston TX 77040