Join our Waitlist for Expert Advice!

Uber and the Terrible, Horrible, No Good, Very Bad Month San Francisco and Los Angeles are suing the ridesharing service, the latest events in what's shaping up to be a trying time for the company

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Uber via Facebook

The last couple of weeks have been rough going for Uber, as the ridesharing service continues to be hit by regulatory roadblocks from cities around the globe.

Now comes word of more legal woes: The cities of San Francisco and Los Angeles have sued the company over allegations that it overcharges consumers, as well as makes misleading claims about the safety of its service.

Security-wise, the charges center on the discrepancy between Uber's claims that it employs an "industry-leading background check," and what both cities paint as inadequate screening measures. Speaking at a news conference, San Francisco District Attorney George Cascon called Uber's security checks "completely worthless," because the company fails to fingerprint its drivers, according to The L.A. Times.

Related: Uber Raises $1.2 Billion in New Funding Based on a $40 Billion Valuation

Lyft, a smaller ride-sharing competitor, was also sued by both cities. Unlike Uber, Lyft has agreed to settle, paying out $500,000 in civil penalties.

While the civil suits aren't likely to shut down Uber in either Los Angeles or San Francisco, they come at trying legal times for the company, which has faced new operational snags in a host of cities both domestic and international. Yesterday, the ridesharing service was banned in Delhi, just days after a driver was accused of raping a passenger. India is not the first country to take strong action against Uber. The company has run into regulatory problems in Frankfurt, Germany; Toronto, Canada, the Netherlands, and most recently Madrid, Spain and Rio, Brazil.

Stateside, challenges from local regulators have also recently erupted. On Monday, Portland sued Uber, and the ridesharing service also faces legal battles in Nevada, Little Rock, Ark., Richmond, Va., and Cambridge, Mass.

Related: What the Uber Snafu Teaches About Avoiding Inappropriate Public Statements

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Cut Costs, Not Features with This Microsoft Bundle Deal

You get Office, Windows, Project, and Visio for $72.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.