Ride sharing service Uber is in a lot of trouble in New York. One of its drivers killed a pedestrian in the city and the Taxi and Limousine Commission there has suspended five of the company’s bases.
Uber may currently have a multi-billion valuation, but it seems that the company might have trouble staying in business for much longer, let alone ever have a successful IPO. It has been chased out of countries around the world such as India and Spain after rape allegations were made against its drivers and local taxi unions protested its unfair competition.
Rape has also been charged against an Uber driver in Boston and American States like Nevada don’t want it operating within their borders.
27 year old Wesley Mensing died after he was hit by Uber Driver Aliou Diallo’s Black Mercedes SUGV while he was crossing E. 62nd Street at Lexington Avenue on Saturday night. Mensing was pronounced dead at scene the while another person was hurt.
Uber released a statement about the death saying, “Our thoughts and deepest sympathies are with the families and loved ones of those involved in this tragic accident. We are providing the NYPD all information that can assist in their investigation.”
The driver remained at the scene of the accident and cooperated with the police. He was not charged with a crime.
Meanwhile Uber is in trouble for not turning over information about tips that its drivers received to the NY Taxi and Limousine Commission. After refusing to turn over electronic records the commission suspended five of the company’s bases.
An Uber spokeswoman said, “Uber continues to operate legally in New York City, with tens of thousands of partner drivers and hundreds of thousands of riders relying on the Uber platform for economic opportunity and safe, reliable rides. We are continuing a dialogue with the NYC Taxi and Limousine Commission on these issues.”
Now let’s see how much more, if any, capital the company will be able to raise from new investors. Current investors are likely asking for their money back.