Uber: We don’t have to pay drivers based on rider fares

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Uber is fighting a proposed class-action lawsuit that says it secretly over charges riders and under pays drivers. In its defense, the ride-hailing service claims that nobody is being defrauded in its "upfront" rider fare pricing model.

The fares charged to riders don't have to match up with the fares paid to drivers, Uber said, because that's what a driver's "agreement" allows.

"Plaintiff's allegations are premised on the notion that, once Uber implemented Upfront Pricing for riders, it was required under the terms of the Agreement to change how the Fare was calculated for Drivers," Uber said (PDF) in a recent court filing seeking to have the class-action tossed. "This conclusion rests on a misinterpretation of the Agreement."

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