Uber Agrees to Settle Safety Lawsuits
Uber has agreed to pay $28.5 million to settle litigation brought by customers who alleged the ride hailing service misrepresented the quality of its safety practices and the fees it charged passengers, the company said on Thursday. Uber has asked for approval from the U.S. District Court for the Northern District of California to settle two cases: Philliben v. Uber Technologies, Inc. and Mena v. Uber Technologies, Inc. As part of this settlement, the company will pay $28.5 million to around 25 million riders and to avoid using certain language in safety-related advertising as well as the term Safe Ride Fee.
Uber said technology helps safety efforts but no means of transportation is 100 percent safe.
"Accidents and incidents will happen," the company said in a statement. "That's why it's important to ensure that the language we use to describe safety at Uber is clear, precise and accurate."
Going forward Ubder will rename the Safe Ride Fee a Booking Fee. It will be used to cover safety as well as additional operational costs that could arise in the future. This is similar to the approach that Lyft has taken. The next step is for the judge to approve or reject this settlement. If approved, members of the class action will be notified by email and given the choice to be paid either by credit card or to their rider account. The class includes passengers who took a trip in the U.S. between January 1, 2013 and January 31, 2016.