Uber Agrees To Pay $28.5 Million Settlement To 25 Million Riders
SAN FRANCISCO (CBS SF) -- Uber agreed Thursday to pay a $28.5 million settlement to roughly 25 million Uber riders in response to two class action lawsuits over the company's collection of a questionable "safe ride fee."
The class action lawsuits include Uber passengers who took a trip in the U.S. between January 1, 2013 and January 31, 2016.
Uber officials sought approval from the U.S. District Court for the Northern District of California to settle two cases: Philliben v. Uber Technologies, Inc. and Mena v. Uber Technologies, Inc.
The lawsuits claim that despite the fee levied on riders, Uber has not adequately screened its drivers.
In a statement released by Uber Thursday, the company states that "no means of transportation can ever be 100 percent safe. Accidents and incidents do happen. That's why it's important to ensure that the language we use to describe safety at Uber is clear and precise."
Uber officials said that moving forward they will rename the "Safe Ride Fee" as a "Booking Fee," and that they will use that fee to cover safety as well as additional operational costs that could arise in the future.
Uber officials said this approach is similar to the approach that their competitor, Lyft, has taken.
Uber is now waiting for the judge to approve or reject the settlement. If approved, members of the class action lawsuit will be notified by email and can be paid either by credit card or to their rider account.
But after attorney fees have been paid, riders aren't likely to get more than $1.
By Hannah Albarazi - Follow her on Twitter