More bad news for ride sharing service Uber.
The company has been hit with a new lawsuit which says its ‘upfront’ pricing model, which was brought in to give riders more price transparency, is anything but.
The lawsuit claims the price guarantee is based on an inefficient calculation of distance and time which is nearly always more than the actual ride would normally cost.
The complaint alleges riders are being overcharged by an average of $1.98 per ride, which is worth about $7.43 million per month in New York alone.
"Upon information and belief, Uber has intentionally designed the software that calculates the Upfront Price to use a longer, less efficient route than the route which Uber uses to populate the driver’s Uber App, which charges the rider a higher fare and pays the driver a lower fare, when the two should be the same fare as set forth in the Technology Services Agreement," the lawsuit said.
The class action lawsuit was this week filed by primary plaintiff Jacqueline Gayed and so far an additional 100 Uber customers have joined.
A similar suit was filed in California last month.
