Uber pays $20 million to settle claims of driver deception

Uber Technologies is paying $20 million to settle allegations that it duped people into driving for its ride-hailing service with false promises about how much they would earn and how much they would have to pay to finance a car.

The agreement announced Thursday with the Federal Trade Commission covers statements Uber made from late 2013 until 2015 while trying to recruit more drivers to expand its service and remain ahead of its main rival, Lyft.

The FTC alleged that most Uber drivers were earning far less than Uber claimed in 18 major U.S. cities. Regulators also asserted that drivers wound up paying substantially more to lease cars than the company had proclaimed.

San Francisco-based Uber says it is pleased to have resolved the matter.

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Citation: Uber pays $20 million to settle claims of driver deception (2017, January 20) retrieved 17 August 2022 from https://phys.org/news/2017-01-uber-million-driver-deception.html
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