June 24, 2017

Lawsuit Accuses Uber Of Fare Fraud



a lawyer in his office showing a document with the text lawsuit written in it
Copyright: nito500 / 123RF Stock Photo

According to a federal class-action lawsuit filed today, Uber is charging UberX riders based on different, less-efficient routes than the ones its basing driver pay on, resulting in higher fares for riders.

The suit relates to Uber’s “upfront” pricing model, which offers drivers a guaranteed rate based on miles and minutes driven. The complaint, filed in Brooklyn federal court, notes this practice qualifies as unjust enrichment under New York general business law.

“Contrary to Uber’s representations concerning the ‘cost of the ride’ and the “actual fare” charged to Uber X riders via the Upfront Pricing model, Uber has charged Uber X riders a fare that is $1.98 higher on average than the ‘actual fare’, i.e., the fare incurred by the Uber X drivers for the ride,” according to the lawsuit. The complaint estimates that Uber pockets an additional $7.43 million per month from UberX drivers thanks to its upfront pricing. In September of last year, the Ride Share Guy blog saw a discrepancy between what drivers were being paid and riders were paying, noting that Uber was “overcharging” customers. In the months

The complaint estimates that Uber pockets an additional $7.43 million per month from UberX drivers thanks to its upfront pricing. In September of last year, the Ride Share Guy blog saw a discrepancy between what drivers were being paid and riders were paying, noting that Uber was “overcharging” customers. In the months since, Uber […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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