Uber to pay $28.5M to settle safety ad lawsuits

Uber has agreed to pay $28.5 million to settle a pair of class action lawsuits that allege the ride-hailing company misled users about the safety of its service. The judge must still approve the deal. Uber started charging people a Safe Ride fee (usually between $1 and $2.50 depending on where you used the service) back in 2014 to build out key parts of the platform “including a background check process, development of safety features in the app, incident response, and other operational costs”.

While the settlement requires no material changes to Uber’s safety procedures, it does represent a first-of-its-kind concession from Uber, which has repeatedly challenged local authorities that insist Uber drivers undergo the same government-administered background checks and safety measures as other commercial transportation providers.

Under the settlement, Uber would stop using certain “safety-related” advertising language and would rename its “Safe Ride Fee” as a “Booking Fee”.

“Accidents and incidents will happen”, the company said in a statement. “For example, by sharing driver information with riders – their license plate and photo ID – before they get into the auto; by tracking trips using Global Positioning System from beginning to end; and by enabling riders to share their ETA or route with family and friends”. The 24.8 million customers in the class action include nearly any person who rode in an Uber vehicle in the USA from January 2013 to the end of January 2016.

Lyft Inc., Uber’s biggest US rival, last month agreed to pay $12.25 million to settle a case filed by California drivers over their status as independent contractors. “That’s why it’s important to ensure that the language we use to describe safety at Uber is clear, precise and accurate”.

Lawyers for plaintiffs in the two cases – Mena v. Uber and Philliben v. Uber – did not immediately respond to emails requesting comment. In October, two women sued the company claiming they were sexually assaulted by their male Uber drivers. Uber competitor Lyft faced a similar issue, with riders in San Diego filing a civil suit around Lyft’s Trust & Safety fee in June 2015.