Uber Penalized Millions To Settle Lawsuit For Overcharging People With Disabilities

  • The Department of Justice reached a multi-million-dollar settlement agreement with Uber Technologies Inc UBER for an alleged Americans with Disabilities Act (ADA) violation. 
  •  Uber wrongfully charged wait-time fees to passengers with physical disabilities.
  • Under the agreement, Uber will offer several million dollars in compensation to more than 65,000 Uber users who were charged discriminatory fees due to disability.
  • Also Read: Uber Had Weighed Strategic Options For Indian Business At One Point
  • The wait-time fee usually applies two minutes after a standard Uber arrives at a pickup location. Uber charges the price until the car begins its trip. 
  • Uber previously said the average wait-time fee charged to riders is less than 60 cents, the Wall Street Journal reports.
  • In November, DOJ prosecuted Uber, urging it to modify its wait-fee policy and pay unspecified monetary damages and civil penalties.
  • Uber acknowledged altering the procedure before the DOJ filed the case.
  • Uber had faced challenging times during the pandemic as activities got restricted. Further, it struggled to bring back its drivers as the economy gradually opened up, leading to higher fares. Ultimately it decided to resume its ridesharing services.
  • Uber held $4.2 billion in cash and equivalents and generated $15 million in operating cash flow as of March 31.
  • Price Action: UBER shares traded higher by 1.28% at $22.87 in the premarket on the last check Tuesday.
  • Photo via Wikimedia Commons
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