Ridesharing services might be getting a shakeup in Southern California.
Following months of conflict over a controversial data-sharing policy, Los Angeles has temporarily suspended Uber’s permit to rent electric scooters and bicycles on city streets and sidewalks.
The company’s subsidiary, Jump, must appeal the decision by Friday or leave the city, the Transportation Department told the company in a letter last week. For now, customers can still rent the vivid red scooters and electric bikes through the Jump app.
In response, Uber threatened in a letter to sue the city over the “patently unfair and improper” suspension. The letter also questioned the validity of the “eleventh-hour administrative review process” that the city created last month.
“Every other company that is permitted in Los Angeles is following the rules,” said Transportation Department spokeswoman Connie Llanos. “We look forward to being able to work with Uber on getting them into compliance.”
Meanwhile, Lyft continues to gain momentum with a 63% increase in revenue and more earnings per rider using its ride-hailing app, as the Wall street journal reports:
“The results prompted Lyft to improve its full-year guidance for the second quarter in a row. The company said it expects annual revenue of $3.57 billion to $3.58 billion, up from $3.47 billion to $3.50 billion. It trimmed its estimate for adjusted annual losses of $708 million to $718 million, compared with previous guidance of $850 million to $875 million.”
Content retrieved from: https://www.latimes.com/california/story/2019-11-04/los-angeles-suspends-uber-jump-scooters-bikes-data-privacy