Uber agrees to pay $28.5 million in class action settlement

February 12
4:28 AM 2016

Uber Technologies said that it has decided to pay $28.5 million to about 25 million customers as a settlement in the cases; Mena vs. Uber and Philliben vs. Uber. With regard to this settlement, Uber has agreed to evade the use of some languages in adds pertaining to safety and also reword the phrase "Safe Ride Fee."

The company said that it will retitle the add term "Safe Ride Fee" to "a Booking Fee." Uber noted that the fee will be utilized to envelope both safety and extra operational costs that could occur over the long period. Lyft, one of Uber's rival, has taken similar approach.

The company said it has appealed to the US District Court for the Northern District of California and it is waiting for approval from the jury. If Uber's settlement deal is approved, the passengers, who availed the company's trip in the middle of January 1, 2013 and January 31, 2016 in the US, will be informed through an email and the settlement will be made either by the customers' account or through credit card.

Technology has made things easy for both drivers and passengers during the complete course of a trip, which was impossible before the advent of smartphones. But, still accidents are unavoidable as far as any means of transport is concerned. It is very important that the language in the safety adds must me clear in order to avoid such accidents, Uber noted.

According to The New York Times, the US-based mobile ride firm uses Hirease, which said that it had a middling turnaround duration of "less than 36 hours." In early 2014, the lawmakers of the country complained that both Lyft and Uber focused on speed rather than in quality with an aim to increase the number of drivers in their firm.

In 2014 spring, Uber was the first mobile ride firm to roll out the "Safe Ride Fee", which varied from one market to another. In Philadelphians the pay is $1.25 a trip, in San Francisco it is nearly $1.35 a trip and in Los Angelinos the pay is $1.65. In this case, the lawyers of the accusers are going to be the biggest winners, while the passengers may get a meager amount from the settlement, THE VERGE said.

In November 2015, Uber agreed to pay a sum of $1.8 million for wrongly collecting airport taxes from California riders. Uber could evade the situation of reclassifying its taxi drivers if it wins the settlement case, the result of which is still waiting in the hands of the judge.

The company's aim to invest further in its app technology will improve safety for riders as well as boost Uber's customer base. The settlement in these cases will allow the company to work peacefully and focus on its prospective growth.

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