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Ridesharing company Uber hit with multi-million dollar lawsuit

Companies of every size and type engage in contractual relationships to keep their entities moving forward and competitive in their particular markets. One large organization that has had an incredible impact on the lives of people throughout Florida and the rest of the nation is Uber. Uber is a ridesharing entity that connects individuals in need of rides with drivers through an online app.

Uber has contracted with mobile advertising companies to spread the name of their brand and to increase its business throughout the world. Unfortunately, Uber recently filed a lawsuit against one such organization, Fetch Media Ltd., because Uber believed that Fetch misrepresented its potential effectiveness and that Fetch did not do enough to stop advertisement fraud from occurring.

Now, an organization that had contracted with Fetch to do work for the Uber project has sued Uber itself. The organization, Phunware Inc., claims that Uber has breached its contract with Fetch and as a result has stopped paying Fetch. Without receiving money from Uber Fetch has been unable to pay its contractual partners, Phunware included. Due to Uber's alleged breach Phunware is seeking around $3 million in damages.

Breaches of contract can be claimed for nonpayment, the failure of a party to perform services or deliver goods as well as a myriad of other bases. As demonstrated above, these cases can be quite complicated. When they are claimed individuals should take the accusations seriously and learn what they need to know to keep their businesses safe. A breach of contract claim can unravel important business relationships and can make it difficult for Florida business owners to keep their doors open.

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