Mobile Taxi App Uber Faces Lawsuit Over Drivers’ Tips

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Uber, the driving service app available for iPhone and Android which lets you to request and pay for rides from the convenience of your smartphone, is facing litigation from some of its drivers in Massachusetts.

It seems the San Francisco-based Uber Technologies Inc. has been retaining as much as half of all gratuity meant for the drivers.  It looks like this isn’t the only hot water the company has gotten into, either:

The suit comes on the heels of similar action taken by drivers in Chicago and regulations for smartphone applications in the car service industry recently proposed by the International Association of Transportation Regulators. Those proposals, released in November, would curtail the use of GPS devices as a substitute for a taxi meter, prohibit drivers without proper licensing from offering rides for pay, and bar car services from charging extra during hours of peak demand. IATR said its intention was to “bring rogue applications into compliance.” The proposals would have to be adopted by local state and city regulators. New York City, meanwhile, has drafted even more stringent regulations. via [PR Newswire]

Indeed, commentators at the NY Times suggest these suits and regulations could mean the end of Uber if compliance isn’t reached.

As for the Massachusetts suit, the filing lawyer is seeking class action status and states that more than 40 drivers in Massachusetts could be involved.  The company is looking at $5 million or more in damages.

For a start-up that is trying to present itself in the media as a David versus regulatory Goliaths, you’d think they’d take better care of their drivers!

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  • Larry Silva

    Thank you for publishing this article. This is the real story of the Goliath called Uber and the hard working drivers trying to make an honest living, without Venture Capital!

    • Matthew Marchesano

      You’re welcome. Thanks for reading. Hope to hear back from you soon. Cheers!