Friday, April 22, 2016

Buying Off A Ruling That Could Ruin Them ? : Uber faces $100 million bill to end drivers’ dispute


Uber faces $100 million bill to end drivers’ dispute

Uber has agreed to pay up to $100 million (£70 million) to settle a pair of US lawsuits that mean the minicab app gets to keep drivers as contractors rather than employees.

In a case that has gripped Silicon Valley and sparked protests against the controversial tech firm, a lawsuit had claimed drivers are employees and should be entitled to reimbursement of expenses.

The agreement will spare Uber from a jury trial in San Francisco that was set for June.

As part of the settlement, which must be approved by a judge, Uber will stump up $84 million to be distributed to 385,000 drivers in California and Massachusetts. A further $16 million could be paid, subject to conditions.

The firm will also work to create a drivers’ association in both states and revise practices such as deactivating drivers from the app without much warning.

In a blog post titled “growing and growing up”, Uber chief executive Travis Kalanick said: “We haven’t always done a good job working with drivers.”



2 comments:

Anonymous said...

If they are made to do this world wide they are F#####.Fare price's will rise and they will still be a S### outfit trying to compete against superior services at same price and if they have to pay 5k for proper insurance the games up.Great news at last.

Tony Casey said...

is that compensation of £218 to each driver ,are the American judges SERIOUS,
smells very FISHY from this side of POND.