MiscellaneousNews

Uber Will Pay $20m to Drivers which have been ‘misled’

Time to get paid properly … if you’re a driver who signed up with Uber but didn’t get paid what you were promised, then you’re in luck!

“Between January and March 2015, ride-sharing service Uber put out ads on Craigslist in the hope of attracting new drivers by offering attractive hourly rates of pay.

In Boston, for example, it told potential drivers they would earn $25 an hour. In truth, fewer than 10% of drivers in the city actually managed to bring in that amount, according to a lawsuit brought by the US Federal Trade Commission.

In separate statements pushed out to the media and posted on its own site, Uber said “the potential income a driver on UberX can make in a year is more than $90,000 in New York and more than $74,000 in San Francisco”.

The FTC said the median amount earned in those cities – for drivers working a 40 hour week – was significantly less ($29,000 and $21,000 less, respectively).

The FTC listed 18 cities across the US where it said Uber was painting a far more lucrative picture than was realistic. In Baltimore, fewer than 20% of drivers earned $16 an hour. Chicago – fewer than 20% earned $21. Minneapolis – 10%, $18. And so on.

On Thursday, Uber agreed to pay $20m to those drivers in order to settle the claim. Quite how it will do that it isn’t yet clear, but the FTC has ordered the company to work with it to find a way.”

Source: BBC

 

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