According to a Reuters report, a flurry of complaints from Uber drivers about an unusually high number of cancelled bookings sparked the bitter legal fight.
A seven-member internal team was setup to investigate the drivers’ complaints in November. Its findings are the basis of a lawsuit filed by Uber accusing Ola of a campaign to disrupt its business and poach its drivers, said the source.
As per the copy of the complaint with Inc42, Uber had alleged Ola of
- Creating over 90,000 rider accounts on Uber’s platform under fake names, email IDs and untraceable phone numbers
- Making over 400,000 false bookings and then cancelling them to ‘induce the termination/frustration of driver partner contracts
- Spreading false messages to Uber drivers to either get them shifted to Ola platform and with intent to incur losses to Uber
However, Ola denied the charges and issued an official statement which said that the allegations were ‘frivolous and false’ and that the lawsuit is Uber’s counter to the contempt proceedings pending against it in Delhi HC.
Uber is now suing Ola for $7.5 Mn to compensate for loss of revenue and goodwill. It claims that over 20,000 drivers have left the company’s platform due to Ola’s wrongdoing.