The FBI has reportedly launched a probe into whether ride-hailing giant Uber used software to illegally interfere with its competitors, potentially dealing a sharp blow to the group already grappling with legal troubles.

Citing people familiar with the matter, the Wall Street Journal on Friday reported that an investigation was looking at a programme used by Uber that tracks drivers working for rival service Lyft.

The paper said that the programme, which was internally dubbed “Hell”, was discontinued last year.

It reported that Uber had used it to create fake Lyft accounts, tricking the rival company’s system into thinking that prospective customers were seeking rides in different locations.

By doing this, Uber was reportedly able to see which Lyft drivers were nearby and what prices they were offering for specific routes.

The programme, the Journal reported, was also used to obtain data on drivers who worked for both Uber and Lyft, and whom Uber might be able to target with cash incentives to leave Lyft.

The Journal said that the focus of the investigation was to find out whether the programme included unauthorised access of a computer. It said that the investigation was being led by the FBI’s New York office and the Manhattan US attorney’s office.

Uber was not immediately available for comment when contacted by The Independent.

The report could deal a blow to company that is struggling to recover from a series of scandals and legal disputes while simultaneously trying to defend its dominance of the highly competitive ride-sharing market.