The Federal Bureau of Investigation is probing to see if Uber used software to illegally interfere with its competitors, the Wall Street Journal reported on Friday.
Under the program, which was discontinued last year, Uber created fake Lyft customer accounts to seek rides, allowing it to track nearby Lyft drivers and ride prices, the Journal said.
This also allowed Uber to obtain data on drivers who worked with both the car-ride providers and could have allowed it to lure drivers to leave Lyft with cash incentives, WSJ added.
Uber is already grappling with a range of legal troubles and the report of the FBI investigation comes days after a bribery probe was announced on the company named Expedia's Dara Khosrowshahi as its new chief executive.
Uber was not immediately available for comment.
The key question for investigators was whether the program amounted to unauthorized access of a computer, the newspaper reported.
The investigation is being led by the FBI's New York office and the Manhattan U.S. attorney's office, the Journal said.
Reporting by Arunima Banerjee