June 22, 2017

Uber Accused of Intentionally Overcharging Passengers by Millions of Dollars



lawsuit form with filler and book
Copyright: eccolo / 123RF Stock Photo

Uber is skimming over $7.4 million per month from passengers in New York City alone, according to a class action lawsuit filed Wednesday.

Under the company’s “upfront” pricing model, unveiled last summer, customers are shown an estimate of the ride’s final cost before they confirm the booking.

But that price, shown and charged to riders, is based on a longer and less efficient route than the one used to calculate the fare in the driver’s Uber app, “in order to charge the rider a higher fare and pay the driver a lower fare,” the suit said.

The result is that Uber overcharges Uber X riders by $2 per trip more than the actual trip’s cost and that “Uber simply pockets the difference,” said the class action suit, filed by Brooklyn resident Jacqueline Gayed. A similar class action suit was filed […]

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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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