Uber facing US criminal investigation over use of 'Greyball' software

The US Department of Justice has begun a criminal investigation into Uber Technologies Inc’s use of a software tool that helped its drivers evade local transportation regulators, according to media reports.

Uber has acknowledged the software, known as ‘Greyball’, helped it identify and circumvent government officials who were trying to clamp down on Uber in areas where its service had not yet been approved, such as Portland, Oregon.

The company prohibited the use of Greyball for this purpose shortly after the New York Times revealed its existence in March, saying the programme was created to check ride requests to prevent fraud and safeguard drivers.

The newspaper report triggered a barrage of negative publicity for Uber.

The criminal probe could become a significant problem facing the company that is already struggling with an array of recent business and legal issues.

Story by ProactiveInvestors