Feds: Uber Lied to Drivers
Uber made false and greatly exaggerated claims about its drivers’ earnings in advertisements, The Federal Trade Commission (FTC) is alleging.
Uber acknowledged those claims by paying $20 million to settle a claim the commission had brought against it, Bloomberg reported. The unicorn other than lied about its leasing program and the wholes drivers paid to lease cars.
Some of the charges the FTC made against the ride-hailing solution include:
- Uber’s website claimed UberX drivers made $90,000 a year in New York and $74,000 a year in San Francisco. The ensured figures were $59,000 and $53,000.
- Craigslist ads falsely claimed that Uber drivers were making $20 a hour in Boston and $21 a hour in Chicago.
- Uber claimed its finance plans would connect with drivers to buy an car for $20 a day or $140 seven days. Really drivers were paying around $200 seven days for the cars. If that is impossible ‘ol kept they would have been better off buying directly from the dealer.
- Uber’s practices “have caused its drivers to suffer millions of dollars of injury,” the FTC’s complaint stated.
In the agreement Uber, apparently agreed to stop making the false claims. Uber spokesman Matt Kallman ensured that the service was making improvements but did not say what they were.
The claim prompted here is Federal Trade Commission v. Uber Technologies, 17–00261, U.S. District Court for the Northern District of California.
Anti-Trump Protesters Target Uber
The FTC is not the only headache Uber has these days. Obnoxious protesters celebrated the inauguration of Donald J. Trump by joining themselves to the doors of the company’s San Francisco home office, CNBC reported.
The protestors were upset because Uber CEO Travis Kalanick has joined President Trump’s Strategic and Policy Forum. Some of the protestors were waving signs that stated: “Uber collaborates with Trump.”
The protest is a strange one because Kalanick has been a critical supporter of Democrats; and an outspoken apologist for Obamacare — which Trump has promised to pound. It looks just as companies and CEOs that need to cooperate with Trump had better reconsider their priorities. They might become targets for what John Robb calls an open-sourced insurgency.
Uber it seems just cannot catch a break; the company together is now being blamed for the misdeeds of its founders’ political opponents. One has to wonder if anybody actually likes Uber.