Numerous passengers reported being charged cancellation fees when drivers cancelled. Some reported that Uber refunded the fee when they complained, while others said they had trouble contacting Uber or reaching an appropriate resolution.
Overcharged commissions to Philadelphia drivers
Between August 26, 2015 and March 2, 2017, Uber overcharged UberBlack drivers a rate of 25% rather than 20% as promised by contract. Philly.com reported an estimate of $4.3 million accrued by Uber during this period.
Overcharged commissions to New York drivers
For New York drivers, Uber took its commission based on gross fares including state taxes, rather than net fares after deduction of taxes. The New York Times estimated that this overcharged New York drivers by more than $200 million — and increased Uber’s revenue by the same amount.
A subsequent New York Times analysis compared Uber’s tax and billing practices across jurisdictions, examining receipts to assess irregularities and comparing changing contract language to understand Uber’s shifting approach.
Applied nonexpiring Uber credits before expiring Amex Platinum credits
In a benefit to American Express Platinum cardholders, Uber offered $15/month of credit. But Uber applied its own credits (nonexpiring credits for customer service problems, drivers taking long routes, and similar service shortfalls) before tapping the expiring Amex credits — to a customer’s detriment, because a customer would always prefer to use the expiring credit first.
Recruited drivers with exaggerated earnings claims
The Federal Trade Commission flagged Uber exaggerating the yearly and hourly income drivers could make in certain cities. For example, Uber claimed on its site that uberX drivers’ annual median income was more than $90,000 in New York and more than $74,000 in San Francisco — but the FTC found that the actual medians were $61,000 and $53,000 respectively, and that less than 10 percent of all drivers in those cities earned the amounts Uber touted.
The FTC also alleged that Uber made false hourly earnings claims in job listings on Craigslist and elsewhere. In eighteen different cities where Uber advertised hourly earnings on Craigslist, fewer than 30% of drivers earned the promised amount. In some cities, as few as 10% of drivers earned the promised amount. Details in the FTC’s complaint.
Uber paid $20 million to settle these claims (along with claims about vehicle financing terms). The funds were used to provide refunds to affected drivers.
Refused to honor taxi strike protesting Trump travel ban
When taxi drivers at JFK Airport went on strike to protest President Trump’s travel ban targeting seven Muslim-majority countries, Uber continued service. While Uber claimed that continued service would assist passengers in completing their journeys, critics saw Uber profiteering and failing to honor an important principle.
Criticism was sharpened because Uber CEO Travis Kalanick at the time served as a strategic advisor to Trump, suggesting that he supported the travel ban or Trump’s policies more generally. (Kalanick later stepped down from that advisory role.)
Undisclosed restrictions on credits to passengers
Uber promised credit on a passenger’s “next trip” but added undisclosed restrictions. Details.
Dishonored promotions
Uber promised passengers a “free ride” but provided only a $15 discount. Details.
“Upfront pricing” disputes
Uber “upfront pricing” nets out in Uber’s favor, increasing effective fees charged to drivers. Details from Rideshare Guy.
In screenshots and details at Quartz, drivers show some specifics. For example, on one ride, the passenger paid $31.02, yet Uber told the driver that the passenger’s fare was $26.96, which led to a net payment to the driver of $17.05 (net of Uber’s fee, tax, and other charges). In other examples, Uber charged the passenger $41.86 but told the driver the fare was $34.85; and $25.65 versus $22.03. In each of these examples, Uber’s statement to the driver about the passenger’s “fare” appears to have been affirmatively false, as the true fare was more.
Underpaid New York drivers
By retaining commissions 2.6% beyond the amount specified in the applicable contract, Uber underpaid drivers in New York. Jim Conigliaro, founder of the Independent Drivers’ Guild, called Uber’s actions “theft.” Engadget reported that the amount averaged $900 per driver, yielding a total overcharge of more than $40 million.
2015 contract revisions indicate that Uber knew it was wrongly taking commission on gross fares, thereby overcharging drivers, though the company denied that allegation.