Uber Pays $20M for Misleading Drivers

UberUber has been in the news several times for questionable business practices. Now, the company will pay $20 million to drivers because of a suit by the US Federal Trade Commission.

Ads on Craigslist and promotions on the Uber website boasted, "the potential income a driver on UberX can make in a year is more than $90,000 in New York and more than $74,000 in San Francisco." Boston drivers, Uber said, could make $25 per hour. But that is rarely the case: less than 10% of drivers in Boston earned that much, and drivers in NY and SF made, on average, $61,000 and $53,000.

Critics say Uber shifts risk and other expenses, such as car purchases, gas, and repairs to drivers, who don't reap the advertised benefits. 

The company disputes how the FTC calculated income and responded to the settlement:

"We're pleased to have reached an agreement with the FTC

"We've made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule."

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  • What is your experience with Uber as a company? How does this news factor into your view of Uber?
  • What could be the discrepancy between how Uber calculates income and how the FTC sees the situation? How credible do you find Uber's argument?