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22 Jun 2022 11:30 AM GMT

Class Action Suit filed against Uber, and Lyft for price-fixing

By Legal Era
Class Action Suit filed against Uber, and Lyft for price-fixing

Class Action Suit filed against Uber, and Lyft for price-fixing Price-fixing by such giant Companies deprives the drivers of economic independence In a class action lawsuit in San Francisco Superior Court, a group of drivers for Uber Technologies Inc and Lyft Inc accused the Companies of unfairly controlling how much the passengers will pay for their rides. In the antitrust lawsuit,...

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Class Action Suit filed against Uber, and Lyft for price-fixing

Price-fixing by such giant Companies deprives the drivers of economic independence

In a class action lawsuit in San Francisco Superior Court, a group of drivers for Uber Technologies Inc and Lyft Inc accused the Companies of unfairly controlling how much the passengers will pay for their rides.

In the antitrust lawsuit, the Companies are accused of violating California antitrust law, and state law prohibiting unfair business practices.

It is stated by the drivers (plaintiff in the present suit) that if they offer much less prices, it would provide the driver with the most competitive compensation. However, they are restricted by the Companies to do so.

It is further stated that by doing so, the consumers end up paying more, and the drivers, as a result, pay less.

An Uber spokesperson said in a statement that the "complaint misconstrues both the facts and the applicable law and we intend to defend ourselves accordingly."

The Complaint further states that even though the drivers are treated as independent contractors, the prices are nonetheless dictated by the Companies. It was also alleged that the hidden algorithms of the Companies which determine the rider's cost and driver's pay are not disclosed to the drivers and the riders.

The vertical price rising is harmful to both the drivers and the riders.

Through this class action lawsuit, the drivers seek to prohibit the Companies from fixing prices through hidden algorithms and use transparent mechanisms to determine the prices. The drivers also seek treble damages to remedy their compressed compensation.

TAGS:
  • San Francisco Superior Court 
  • Uber 
  • Lyft 
  • California antitrust law 
  • unfair business practices 
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