Ridesharing Program Under FBI Investigation | PYMNTS.com

Uber is the focus of a federal investigation in New York as authorities determine whether the ridesharing company used software to interfere illegally with its competitors.

The Wall Street Journal reported on the investigation, citing sources familiar with the process. The probe, led by the New York office of the Federal Bureau of Investigation (FBI) and the Manhattan U.S. attorney’s office, is focused on a defunct Uber program, known internally as “Hell,” which could track drivers working for rival service Lyft.

“We are cooperating with the SDNY investigation,” said an Uber spokesman, referring to New York’s Southern District. He declined to offer additional details.

While Uber has never publicly discussed the “Hell” program, people familiar with it explained that Uber created fake Lyft customer accounts so its competitor’s system believed prospective customers were seeking rides at various locations. This allowed Uber to see which Lyft drivers were nearby and the prices they were offering for various routes.

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Ridesharing Program Under FBI Investigation | PYMNTS.com.