Uber set to give out $20 million settlement to its deluded drivers

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In the start of 2015, ride-sharing service Uber advertised with the aim of fascinating new drivers by offering eye-catching hourly rates of pay. Like in Boston, it said potential drivers would be able to earn as much as $25 an hour.

However researches, showed that less than 10% of drivers in the city in reality managed to earn that kind of amount, according to a lawsuit brought by the US Federal Trade Commission.

Uber in the meantime claimed both on media and its official website that “the potential income a driver on UberX can make in a year is more than $90,000 in New York and more than $74,000 in San Francisco”.

Meanwhile The FTC understood that the median amount earned in those cities – for drivers working a 40 hour week was considerably lower ($29,000 and $21,000 less, respectively).

The FTC noted 18 cities across the US where it said Uber was showing a far more lucrative picture than was truthful. In Baltimore, less than 20% of drivers earned $16 an hour. Chicago – fewer than 20% earned $21. Minneapolis – 10%, $18. And so on.

However Uber recently have settled to give out to pay $20 million to those drivers in order to resolve the claim. The procedure through how it will be performed is not decide yet, but the FTC has asked the company to find the way out.

Furthermore the company said its agreement to settle claim didn’t establish an admission of guilt, disagreeing the way the FTC considered its statistics.

Uber also said it has improved the way in which it publicizes potential earnings to new recruits – but would not go into extra detail.

“We’re pleased to have reached an agreement with the FTC,” company’s spokeswoman said.