Wilshire Law Firm Files Lawsuit Against Uber For Price Discrepancy In Uber’s Upfront Pricing Model
LOS ANGELES – CA. On Monday, April 3, 2017, Bobby Saadian and Daniel Miller of Wilshire Law Firm filed a proposed class action suit in federal court on behalf of their client, Sophano Van, against Uber Technologies, Inc. and its subsidiaries Rasier, LLC and Rasier-CA, LLC.
The complaint alleges that Uber, intentionally, manipulates the route data reported to customers and drivers by using one route in determining its upfront pricing and then transmitting different navigation instructions to drivers. This creates a discrepancy in the price that Uber is charging customers and the amount that Uber is reporting to drivers; allowing Uber to pocket extra money, in addition to the booking fees and percentages permitted under its agreement with drivers.
Uber started utilizing upfront pricing in various cities across the United States in mid-2016 and switched over to the current upfront pricing model in California around September 2016. Uber’s upfront pricing requires customers to select their pickup location and destination, in advance, and then charges them a fixed price for the transportation.
However, when an Uber driver arrives to pick up the customer, Uber provides the driver with a different route that results in less compensation to the driver. When the trip is completed, Uber sends the driver a breakdown of the total fare, Uber’s fees, and the payout to the driver. However, the total fare reported to the driver is not the total fare collected by Uber from the customers.
The proposed class action has been filed to put an end to this misconduct by Uber and to obtain fair compensation for the drivers, who have been underpaid by Uber’s misleading fare reporting.
Wilshire Law Firm was founded in 2007 by Bobby Saadian, Esq. The firm exclusively represents victims of catastrophic accidents, environmental contamination, dangerous pharmaceuticals and defective products. Wilshire Law Firm, also, represents individuals and families in their battles against insurance companies and big business.