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from the always-read-the-fine-print dept.
Submitted via IRC for SoyCow1937
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.
"Plaintiff's allegations are premised on the notion that, once Uber implemented Upfront Pricing for riders, it was required under the terms of the Agreement to change how the Fare was calculated for Drivers," Uber said (PDF) in a recent court filing seeking to have the class-action tossed. "This conclusion rests on a misinterpretation of the Agreement."
The suit claims that, when a rider uses Uber's app to hail a ride, the fare the app immediately shows the passenger is based on a slower and longer route compared to the one displayed to the driver. The rider pays the higher fee, and the driver's commission is paid from the cheaper, faster route, according to the lawsuit.
Uber claims the disparity between rider and driver fares "was hardly a secret."
"Drivers," Uber told a federal judge, "could have simply asked a User how much he or she paid for the trip to learn of any discrepancy."
(Score: 3, Insightful) by bradley13 on Wednesday September 20 2017, @05:20PM
"Free market relies on perfect information so that consumers and business owners can come to terms"
I'm quite certain that Uber wants to maximize their profits, but let's talk about that perfect information, shall we?
How do $million dollar taxi medallions flow into the information consumers have? At most airports, only certain taxi companies are allowed to pick you up - they've negotiated with the airport, gotten the contract, and charge you whatever surcharge they feel like. You, as the consumer, have no insight into that process.
Uber has its problems, but it is a lot more transparent that the taxi companies. More importantly, it is a competitor in markets that are (in many cities) otherwise completely locked up via corporate cronyism. The corporations don't like the competition - and that is what is really behind many of the complaints about Uber.
Everyone is somebody else's weirdo.