25 million riders will be paid back by Uber, who have used its services in between January 1, 2013, to January 31, 2016.
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As part of the settlement with the court, Uber would also stop using certain safety-related language like “Safe Ride Fee” and term it instead as a “Booking Fee”.
Uber said technology helps safety efforts but no means of transportation is 100 percent safe. Since some Uber drivers have been charged and indeed sentenced to jail time over incidents of sexual assault, it’s no wonder why Uber’s veneer of stringent safety has fallen apart. And it’s also committing not to use as many superlatives in describing its safety features. Uber agreed to pay as part of a settlement agreement following a class-action lawsuit which took aim at the company for failing to do top-notch background checks.
They attacked Uber for charging a fee of up to $2.30 per trip for what it called industry-leading background checks on potential drivers.
In December 2014, Lyft agreed to settle a similar lawsuit in San Francisco for $500,000 in which Lyft’s claims to industry-leading background checks were disputed.
New Uber customers can get $20 off their first ride with the promo code RIDEAA and American will offer a $25 coupon code for its AAdvantage executive platinum members.
The settlement brings to a close a suit that was filed by Matthew Philliben and Byron McKnight in 2014 over whether Uber misrepresented the level of scrutiny it uses when recruiting drivers, who must pass background checks conducted through a third-party service.
Uber has pointed out that its technology – such as Global Positioning System tracking and sharing driver’s photo identification and number plate before the passenger gets into the vehicle – does improve safety.
Although the 2014 case was dismissed, San Francisco Superior Court judge Mary Wiss rejected Uber’s dismissal request in the class-action suit on Thursday. The app competitor Lyft has adopted a similar model, according to Uber.
Uber drivers in NY went on strike earlier this month to protest fare cuts after the company cut its rates.
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Uber is expanding fast across the world as lawmakers still struggle with how they can control and regulate the car-hailing service.
