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Uber Shells Out $20m for Driver Deceit

Olivia Long - January 20, 2017 - 10:39 AM
Uber Shells Out $20m for Driver Deceit
Uber has agreed to pay millions to settle claims that it lured drivers in with exaggerated earnings claims.

(CCM) — Uber's bread and butter is its network of drivers, and it is because of this network that the company will have to pay $20 million. According to a report posted on the official U.S. Federal Trade Commission (FTC) website, the app-based ride hailing company has agreed to this hefty fee as to settle claims that it had "misled prospective drivers with exaggerated earning claims and claims about financing through its Vehicle Solutions Program." The suit alleges that drivers saw roughly $20,000 less than Uber's boasted driver earning potential of more than $90,000 in New York and over $74,000 in San Francisco. It also accused Uber of having neglected its promise to drivers that they could "own a car for as little as $20/day" or lease a car with "payments as low as $17 per day."

"Many consumers sign up to drive for Uber, but they shouldn’t be taken for a ride about their earnings potential or the cost of financing a car through Uber," said Jessica Rich, the FTC's director of the Bureau of Consumer Protection. The $20 million earned in the settlement will be allocated to drivers in the U.S. who have been affected by these claims.

Image: © iStock.
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