A class-action lawsuit against taxi outfit Uber claims that the taxi outfit is running a “clever and sophisticated” scheme in which it manipulates navigation data used to determine ‘upfront’ rider fare prices while secretly short-changing the driver.
According to court documents, when a rider uses Uber’s app to hail a ride, the fare the app immediately shows to the passenger is based on a slower and longer route compared to the one displayed to the driver.
The software displays a quicker, shorter route for the driver. But the rider pays the higher fee, and the driver’s commission is paid from the cheaper, faster route, according to the lawsuit.
Uber implemented the so-called “upfront” pricing scheme in September and informed drivers that fares are calculated on a per-mile and per-minute charge for the estimated distance and time of a ride.
“However, the software that calculates the upfront price that is displayed and charged to the Users calculates the expected distance and time using a route that is often longer in both distance and time to the one displayed in the driver’s application,” according to the suit.
The rider pays a higher fee because the software calculates a longer route and displays that to the passenger. The driver does not even get any benefit because they are paid a lower rate based on a quicker route.
Uber trousers the difference charged to the User and the fare reported to the driver, in addition to the service fee and booking fee disclosed to drivers.