Judge Calls Uber Argument 'Counterfeit Logic' in Driver Fee Case
A federal judge in San Francisco on Monday let a class action lawsuit move forward, allowing drivers to pursue claims the company takes an oversized chunk of passenger fees.
August 01, 2017 at 11:39 AM
2 minute read
SAN FRANCISCO — File this away in the growing list of legal headaches facing ride-hailing app Uber Technologies Inc.
A federal judge in San Francisco on Monday let a class action lawsuit move forward on behalf of Uber drivers who claim the company takes an oversized chunk of the fees charged to passengers.
Lawyers from the El Segundo and New York offices of Napoli Shkolnik sued Uber in February on behalf of a North Carolina driver claiming the company continues to pay them based on actual ride times and distances even though it moved to a so-called “upfront pricing” model in autumn 2016 that charges passengers based on “aggressive” estimated ride lengths, which tend to be longer. According to the complaint, the new pricing model has led Uber to keep a larger cut of the overall charges to passengers while underpaying what it contractually owes drivers.
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