Uber just agreed to pay $20m over false promises to drivers

Uber in trouble 

Uber is set to fork out $20m (£16m) to settle allegations over payment promises to drivers.

According to a lawsuit brought by the US Federal Trade Commission (FTC), the company made false claims about drivers’ pay which led to them losing money.

According to the cab giant, uberX drivers took home a median income of over $90,000 (£73,000) a year in New York and over $74,000 in San Francisco. 

However, the FTC found that less than 10 per cent of drivers earned that kind of money.

“Many consumers sign up to drive for Uber, but they shouldn’t be taken for a ride about their earnings potential or the cost of financing a car through Uber,” said Jessica Rich, director of the FTC’s bureau of consumer protection. “This settlement will put millions of dollars back in Uber drivers’ pockets.”

Uber said in a statement: “We’ve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule.”