A spokesman for Uber confirmed that the company is fully cooperating with the FBI for the investigation, but the aftermath of the Hell software is just one of the many problems that they will have to deal with. With it, it could help in luring them away from the rival. Uber reportedly stopped using the software in 2016.
The probe is being led by the FBI's NY office in conjunction with the Manhattan US attorney's office, the latter of which was already investigating Uber's "anticompetitive strategies" since 2016, according to the report.
Presumably, Uber used all these information and tactics to be able to undercut the operations of Lyft with lower prices to poach Lyft riders.
People familiar with the matter explained that Uber created fake Lyft customer accounts tricking the competing ride-hailing system to believe that people were looking for rides in various locations in a city. Needless to say, these are serious violations and it is not surprising that this practice is now being investigated by the Federal Bureau of Investigation.
But this investigation isn't the only case that the new Uber CEO has to face. The company has been grappling with workplace culture issues, sexual harassment, and allegedly stealing Alphabet's (GOOG) trade secrets, among other challenges. While it admits that the software has been used in the past to evade regulators, the company claims it has stopped using it in that manner. The Department of Justice is reportedly investigating whether some Uber managers broke foreign bribery laws. The software would allow Uber to better understand how to recruit and attract future drivers.
The investigation adds yet another difficulty on top of the bulging in-tray for new chief executive, Dara Khosrowshahi.