The Tech Bet

Uber facing a global onslaught of big problems

What's next for Uber?

Uber's been making headlines for months, and not the good kind.

A day after city officials in Portland, Oregon, sued Uber, on Tuesday prosecutors in Los Angeles and San Francisco slapped a lawsuit on the company, accusing the ride-sharing app of gouging customers, among other claims. Portland sued the now $40 billion taxi-hailing service for allegedly failing to meet local regulations.

Can the mounting bad press hit the brakes on Uber's growth story? Thilo Koslowski, a vice president and automotive practice leader at Gartner, told the Los Angeles Times that the growing pains appear to be par for the course for such a fast-expanding company.

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"The company is still young and, because of the speed in which it's expanding, it's just encountering these things that are part of growing up," Koslowski told the Times, adding: "Uber has to address these problems because if it doesn't, it's at risk of letting these things get out of control."

The problems don't stop at stateside legal trouble. Uber operations have been halted in New Delhi after a rape accusation. Spain and Thailand also ordered operations stop in their countries.

Yet, Uber remains standing tall.

Uber spokesperson Eva Behrend responded to the civil lawsuits in California: "Californians and California lawmakers all agree. Uber is an integral, safe and established part of the transportation ecosystem in the Golden State. Uber has met with the district attorneys to address their concerns regarding airport operations, the uberPOOL product, background checks and operation of the app. We will continue to engage in discussions with the district attorneys."

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Uber is a ride-sharing company that uses smartphone technology. The Uber app allows clients to hail a ride from ordinary car owners who have signed up to shuttle passengers.

Uber has been valued by investors at $40 billion since being founded in 2009.

Before recent problems, Uber's global expansion has put them in more than 250 cities and 50 countries.