Uber Offers To Pay $28.5M Fine To Customers For Misleading “Safety” Statements

Unfortunately, your cut will be less than a dollar.

Uber Offers To Pay $28.5M Fine To Customers For Misleading “Safety” Statements
[Photo: Evelyn Hockstein/For The Washington Post via Getty Images]

Uber has offered to pay $28.5 million to settle two class action lawsuits brought against the company that alleges the ride-sharing company misled customers over safety statements it made, reports The Verge. If approved by the judge presiding over the case, the settlement will be divided among 25 million Uber passengers in the United States who used the service from January 1, 2013, to January 31, 2016. That means the average Uber customer’s take will be 87 cents, which would be refunded to their credit cards or added as a credit to their Uber accounts.

The main issue in the cases was the company’s marketing of its driver safety records and promises of driver safety checks to customers. Under the proposed agreement, Uber will need to stop using the “safest ride on the road” and “gold standard in safety” slogans in ads it currently uses to promote its safety. It will also rename its “safe ride fee”—currently about $1.25 to $1.65 per trip, depending on the city—to “booking fee,” which will cover everything from driver screening and incident response to technology upgrades and marketing fees, notes The Verge. Only the fee’s name will change; the prices will remain the same.

The news of the proposed settlement comes after a spate of class action lawsuits against the company in recent months. If the judge approves the settlement, which could take months, it will be the largest settlement in Uber’s history. However, given that the private company is currently valued at over $50 billion, the $28 million settlement shouldn’t put a ding in its finances.

About the author

Michael Grothaus is a novelist, freelance journalist, and former screenwriter represented worldwide by The Hanbury Literary Agency. His debut novel EPIPHANY JONES is out now from Orenda Books.