Class Action: Uber 'Overestimates' Fares, Owes Drivers Unpaid Ride Fees
Last Updated on May 8, 2018
Dulberg v. Uber Technologies, Inc. et al
Filed: February 21, 2017 ◆§ 3:17-cv-00850
A North Carolina Uber driver has filed a proposed class action against the company that claims contracted drivers were not paid specific portions of consumer ride fares.
A North Carolina Uber driver has filed a proposed class action against the company that claims contracted drivers were not paid specific portions of consumers’ ride fares that they were promised. The plaintiff alleges that Uber, despite promising to provide drivers with a certain percentage of passengers’ ride fares, does not doll out these amounts to proposed class members. Instead, the lawsuit claims, Uber charges passengers a flat fee at the beginning of each trip based on travel time and distance projections but then “gives its drivers a portion of a separate amount calculated based on actual miles and minutes driven.”
“Because Uber overestimates its initial fee,” the complaint alleges, “drivers are paid less than they are contractually entitled to.”
The case presents a hypothetical example of Uber’s alleged scheme:
- Assume that a driver is contractually entitled to 80 percent of what the customer is actually charged for his or her ride.
- If a customer were to book a ride that costs, say, $100, this is the amount he or she would be charged based on Uber’s “aggressive estimate” of the ride’s total cost.
- Per the driver’s agreement with Uber, he or she should be entitled to $80, which is 80 percent of $100.
- The plaintiff claims that instead of being paid the $80 that is reportedly contractually owed, “Uber waits until the end of the ride and calculates a separate amount based on actual miles/time.”
The lawsuit contends that Uber overestimates riders’ fares and, as a result, the end calculation is lower, meaning, based on the above hypothetical, the defendant would only pay the driver $72, substantially less than what he or she is owed under contract.
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