Uber Coughs Up Millions in Settlement

Until now, Uber has been on the other side of legal action. Cities and counties in many areas where Uber operates have tried to block the app-based rideshare program. Mostly these tactics have produced little effect, sometimes stalling but rarely stopping the company altogether.

Uber to Pay Out Nearly $29 Million in Lawsuits

But now Uber is feeling some heat that will leave a mark. The company has agreed to pay nearly $29 million to settle two lawsuits, which argued the company “misled” customers about safety procedures and fees.

The lawsuit argued Uber charged a fee of up to $2.30 per trip to cover what it termed an “industry-leading background check” on its drivers. But Uber didn’t complete the fingerprint checks required of taxi drivers, and, though they argue otherwise, those are the standard-bearers in the industry.
According to Uber’s settlement offer, the company asked the federal judge to allow them to pay 25 million riders who used the service in the United States between January 1, 2013, and January 31, 2016.

Uber also agreed to cease using specific safety-related language in its advertising and marketing efforts, going so far as to re-christen their “safe ride fee” a “booking fee.”

Even as they agreed to these terms, Uber spokesmen argued that the company does indeed offer safety features, specifically naming trip tracker technology using GPS as well as sharing a driver’s photo ID and license number before the passenger enters the vehicle. Still, the concession implies the company isn’t as satisfied with its safety features as its rhetoric may imply.

Uber’s PR Team on the Offensive

While the judge has yet to approve the deal, Uber’s PR people are already trying to distance themselves from this issue.

“We are glad to put these cases behind us, and we will continue to invest in new technology and great customer services so that we can help improve safety in the cities we serve,” the San Francisco-based company said in a statement Thursday.

The quick pivot is a necessary PR move for Uber. They can’t afford to weaken the public trust, as it is this public support that has played a large role in helping Uber win both PR battles and legal battles against established interests.

David Milberg is an investment banker from NYC.