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NC driver is filing a class action suit against Uber

NorthernBelle

Well-Known Member
Driver is questioning Uber's pay practices and claiming that Uber isn't paying the full fare. Maybe this will be the beginning of drivers in the US fighting Uber in the way others are fighting. Complacency really isn't the answer.

"For example, on February 2, 2017, Plaintiff drove an UberX passenger from 3408 Cherry Lane in Raleigh, North Carolina, to 101 Macaw Street in Raleigh, North Carolina. The passenger was charged $15.38. This is the Fare. The Booking Fee in Raleigh at the time was $1.80. So Dulberg should have made 80% of ($15.38 - $1.80) = $10.86.

But Dulberg was paid $9.91 (80% of Uber’s backend calculation of $12.39). This is 95 cents less than Dulberg should have made under the Agreement (the difference is magnified on longer rides). Indeed, instead of receiving the promised 80% of the Fare, Dulberg received approximately 73%."

https://arstechnica.com/tech-policy/2017/02/uber-driver-company-isnt-paying-the-full-80-of-a-fare-that-im-owed/
 

Altima ATL

Well-Known Member
I wish him all the best. There will be posters on here saying that he agreed to drive for $x per mile etc. and Uber is not in breach of contract, however if the court views that the 'upfront pricing' is Ubers way of avoiding paying drivers more and actually raising rates, then maybe we could get some recompense from it.

Even if Uber was to lose the case - in 'Class Action' suites is normally just the lawyers who make money - the individual payouts tend to be paltry.

My view has always been that 'Upfront Pricing' is Ubers way to increase rates without passing it on to the driver.
 

steveK2016

Well-Known Member
101 Macaw St, Raleigh, NC 27617 to 3408 Cherry Ln, Raleigh, NC 27607 is 14 Miles, 21 minutes.

Based on the rate table for Raleigh of $0.70 mile $0.14 minute, gross fare is $12.74. The pax paid $15.38 which is based on a fare estimate, I just did a fair estimate from my actual Pax App, it shows it as $16.26 so that seems about right.

As drivers, we agree to get paid based on the rate table for our market.

His rate table comes out to $12.74 (gross fare) - 1.80 (booking fee) - 20% (commission) = $8.752 is what he should have made on that trip assuming he was still at 20% rates..

So the fact that he got paid $9.91 means he actually got paid 22% more than what the Driver Agreement said he would get paid. Now, this difference is more than likely due to traffic conditions at the time, causing the 14 miles and 21 minutes to be more like 14.5 miles and 24 minutes, or some other variable.

Here's a commentary I made in regards to up front pricing scheme...

Just because you could argue it doesn't make you right.

Unfortunately, Uber doesn't seem to be doing anything wrong with this. I hate it as much as the next guy. If The pax is paying more, I should be earning more...

...however, the way our agreement with Uber says we are paid based on the rate table. They do not set any perimeters mandating that pax must be charged based on the same rate table.

If I'm wrong, please advise on what page of the Driver Contract that it does that. I will gladly admit to being wrong in the case, if I were.


I used to be in business for myself providing web, graphics and marketing services to clients. I charged them a set rate, then I eventually realized I could outsource jobs that I couldn't do myself. I found Independent Contractors to fulfill such jobs. They agreed to my pay rate. What I charged my customer had no barring on what I paid them. If they ended up being under budget, I pocketed the difference and made better margin on the sale.


If you look at the rate in the pax app and click on the (i) icon, it makes this statement:

Your fare will be the price presented before the trip or based on the rates below and other applicable surcharges and adjustments.
So they are telling the pax that they may be charged two different ways. If the driver takes a longer route and goes over the up front fare price, then it's based on the standard rate table in your city. If you, the IC, happens to fulfill the job in half the time then they quoted, then Uber pockets the difference.

I don't like it as a driver, but I definitely see no real issue with this method of billing on an FTC complaint level. This is actually pretty standard for any business who outsource to independent contractors. Sometimes your IC is good and does the job faster than anticipated, leaving you with better margins. Sometimes you get an IC that sucks and goes over budget.
I would definitely love for Uber to stop the up front pricing scheme and pay drivers accordingly, but technically speaking, I don't think theyre doing anything wrong.

"The crux of the complaint is that Uber breaches its agreement with drivers by not paying them the agreed-upon percentage of the fares they generate," he e-mailed. "Several of our clients recently brought this critical issue to our attention, and it’s important for us to ensure that Uber complies with its contractual obligations."
The crux of the rebuttal by Uber is that the Driver Agreement pays based on miles and time, not on a direct percentage of the pax fare.
 

NorthernBelle

Well-Known Member
  • Thread Starter Thread Starter
  • #4
I believe the rate was $0.75/mile at that time.

He won't win the lawsuit, but it will cause a conversation worldwide and possible boycotts of uber when everyone realizes this truth that uber has been trying so desperately to keep from us.
And this is what I think is important. It isn't about winning the lawsuit, it's about sparking a nationwide (or worldwide) conversation and bringing awareness to Uber's practices. It also encourages more complacent regions to fight back, by showing them that protest can work.
 
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