A class-action lawsuit has been filed in federal court in Los Angeles against Uber for allegedly implementing a scheme to defraud its drivers.
According to the suit, sometime between June and September 2016, “upfront” pricing came into effect, calculating fares based on the number of miles and minutes for the estimated distance and time of a ride.
However, the lawsuit stated, “… The software that calculates the upfront price that is displayed and charged to the users calculates the expected distance and time utilizing a route that is often longer in both distance and time to the one displayed in the driver’s application.”
The suit claims Uber Software manipulates the navigation data that calculates the fare amount for its users as well as the amount reported and paid to its drivers. Drivers are allegedly paid based on a quicker route (lower rate) while users would pay based on a longer route (higher rate).
The causes of action in the suit are breach of contract, unjust enrichment/restitution, fraud by concealment, violation of the Lanham Act, unfair competition, and failure to pay wages.
In addition to back pay and legal fees, the suit seeks, “An order temporarily and permanently enjoining the Uber Defendants from continuing the unlawful, deceptive, fraudulent, and unfair business practices alleged in this complaint.”
The lawsuit was filed on April 3. There has yet to be a ruling on the efficacy of the claims.