Class action alleges that Uber charges consumers for longer route than it pays drivers

Posted on: April 11th, 2017 by Steve Larson

A proposed class action filed in California federal court alleges that Uber’s upfront pricing model charges passengers a higher fare based on a longer route, but requires drivers to take the shortest route, allowing Uber to pocket the difference. The plaintiff alleges that Uber instituted the new “upfront” pricing model sometime between June and September 2016. The upfront pricing model gives prospective riders using the Uber app a fare estimate based on a longer than intended route. Upon conclusion of the ride, the Uber defendants collect the upfront rate from the user based on the longer route and time calculations but do not transmit the full fare collected to the drivers (minus the per transport service fee to which the Uber defendants are entitled).

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