As technology change so does the way society conduct business including transportation. Uber has provided a way for everyone to have a personal driver, in spite of your income or demographics. The company also gives a person an opportunity to earn an extra income and become a small business owner. As great as this sounds, Uber has been involved in class action suits due to lack of proper background checks of its driver.
According to NYTimes:
Uber has agreed to pay $28.5 million to settle a class-action lawsuit that took issue with the company’s claims that its driver background checks were “industry leading.”
The terms of the settlement, filed on Thursday in the United States District Court in the Northern District of California, require Uber to pay roughly 25 million riders across the United States and to reword the language around the fee that the company charges for each ride.
Uber will rename the fee, called the “safe ride fee,” to a “booking fee.” The ride-hailing company said it would use the fee to “cover safety as well as additional operational costs that could arise in the future.” Lyft, a main Uber rival, has made a similar change, Uber said.
“No means of transportation can ever be 100 percent safe. Accidents and incidents do happen,” Uber said in a statement. “That’s why it’s important to ensure that the language we use to describe safety at Uber is clear and precise.”
Bahiyah Shabazz is the President of Shabazz Management Group, Fabulous & Money Savvy and BROWN GIRLS DO INVE$T. She has appeared and given financial advice on various media outlets, and is the author of Women Building Wealth.