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Contracts allow rider fares to be higher than what is known and paid to drivers.
Uber is fighting a proposed class-action lawsuit that says it secretly over charges riders and under pays drivers. In its defense, the ride-hailing service claims that nobody is being defrauded in its "upfront" rider fare pricing model.
The fares charged to riders don't have to match up with the fares paid to drivers, Uber said, because that's what a driver's "agreement" allows.
...
What's more, a rider might also pay Uber more than what the driver's fare is based on because a driver's contract allows Uber to "adjust" the fare known and paid to the driver, according to Uber's legal filing.
"The Agreement allows Uber to adjust the Fare under various circumstances. For example, Uber is permitted to make changes to the Fare Calculation based on local market factors," Uber said in its federal court response. "Likewise, Uber may adjust the Fare based on other factors such as inefficient routes, technical errors, or customer complaints."
And here's the kicker:
Drivers disclaim any right to receive amounts over and above the Fare produced by the Fare Calculation.
The suit, which seeks class-action status, demands back pay and legal fees. It wants a Los Angeles federal judge to halt the alleged "unlawful, deceptive, fraudulent, and unfair business practices."
A hearing is set for December 1.
https://arstechnica.com/tech-policy...s-a-significant-risk-on-ride-hailing-service/
Uber is fighting a proposed class-action lawsuit that says it secretly over charges riders and under pays drivers. In its defense, the ride-hailing service claims that nobody is being defrauded in its "upfront" rider fare pricing model.
The fares charged to riders don't have to match up with the fares paid to drivers, Uber said, because that's what a driver's "agreement" allows.
...
What's more, a rider might also pay Uber more than what the driver's fare is based on because a driver's contract allows Uber to "adjust" the fare known and paid to the driver, according to Uber's legal filing.
"The Agreement allows Uber to adjust the Fare under various circumstances. For example, Uber is permitted to make changes to the Fare Calculation based on local market factors," Uber said in its federal court response. "Likewise, Uber may adjust the Fare based on other factors such as inefficient routes, technical errors, or customer complaints."
And here's the kicker:
Drivers disclaim any right to receive amounts over and above the Fare produced by the Fare Calculation.
The suit, which seeks class-action status, demands back pay and legal fees. It wants a Los Angeles federal judge to halt the alleged "unlawful, deceptive, fraudulent, and unfair business practices."
A hearing is set for December 1.
https://arstechnica.com/tech-policy...s-a-significant-risk-on-ride-hailing-service/
