As anyone who has tried to get a cab when it is raining knows, hailing a taxi can be very difficult. One company that is trying to capitalize on that difficulty is Uber, which offers an on-line service that hails the cab for you, even using a smart phone. Uber also apparently tries to be consumer friendly by automatically adding a tip to the bill. But according to regulators, Uber keeps part of the tip, which it does not adequately disclose. The way Uber works is quite simple, so much so that it is surprising no one else offers the same or similar service. Using the web or an app, consumers submit a request for a car, a free taxi accepts the request, and the consumer receives a text message confirming that the car is on the way.
One of the most convenient aspects of Uber is that it relieves the consumer from the need to pay cash. Instead, when the trip is completed, Uber automatically charges the card the consumer used to make the reservation. The tip is even included. However, regulators claim that Uber keeps a portion of the tip. Not only does this harm the cab driver, who receives less of a tip than he or she might otherwise have enjoyed, but it is deceptive. Consumers think they are paying the entire 20% to the cab driver, when Uber apparently keeps a portion. If these facts are correct, Uber may have violated consumer protection laws. If you or someone you know has used Uber service that included a pre-paid tip, please contact us to discuss your legal options.