Uber pays US authorities millions for misleading drivers
With a payment of millions, the controversial U.S. ride-hailing company Uber has settled allegations by the competition authority that it lured drivers with false promises.
Uber Technologies agreed to pay 20 million dollars, as announced by the FTC. The money will be used to compensate affected drivers. The FTC had accused Uber of exaggerating the revenue opportunities in certain cities in order to attract new drivers. The conditions for a vehicle financing program were also presented as more attractive than they actually were.
According to the competition authority, Uber promised drivers in New York average annual earnings of 90,000 dollars and drivers in San Francisco 74,000 dollars. In its calculations, however, the FTC only came up with 61,000 dollars for New York and 53,000 dollars for San Francisco, with Uber blaming other methods of calculation for the difference. However, the ride service provider said it was "satisfied" to have reached an agreement with the authority. Lawyers for drivers also welcomed the agreement. The reality of the work was "a far cry from the rosy picture" painted by apps like Uber, said Jim Conigliaro, founder of a drivers' association in New York City. (SDA)
