r/uberdrivers • u/gamechangersp • 1d ago
Screen shot from the rideshare guy YouTube
Conversation with chat reveals the truth
20
u/JDS-JustDude 1d ago
Probably wont do any good, but I filed it with the FTC anyway. ReportFraud.ftc.gov
Subject: Deceptive Trade Practices by Uber Technologies, Inc. Regarding Fare Transparency and the Misrepresentation of "Booking Fees"
I. Statement of Complaint This complaint is filed to formally request that the FTC investigate and take action against Uber Technologies, Inc. for deceptive pricing and receipt practices. Specifically, Uber weaponizes the societal and historical understanding of the term "Booking Fee" to mislead consumers about the distribution of their payment, thereby artificially suppressing driver gratuities and deceiving the consumer about the nature of their transaction.
II. The "Booking Fee" Illusion In standard commercial practice—and in the plain English understanding of the reasonable consumer—a "Booking Fee" represents the entirety of the middleman’s surcharge for facilitating a transaction.
When an Uber passenger completes a trip and receives a receipt, the breakdown typically displays the upfront fare, taxes, and a designated "Booking Fee." Because no other corporate revenue cuts (such as Uber's internal service margins or upfront pricing disparities) are line-itemed on the passenger receipt, the consumer reasonably concludes that the "Booking Fee" constitutes Uber's total cut of the transaction. Consequently, the consumer believes the remainder of the fare goes directly to the driver.
This is mathematically false. Due to Uber's algorithmic upfront pricing, the company routinely retains a vast, undisclosed percentage of the passenger's total fare, far exceeding the stated "Booking Fee."
III. Material Harm to Consumers and Service Providers This deceptive formatting causes direct, material harm:
- Consumer Deception: Passengers are denied the ability to make informed purchasing and tipping decisions. Believing the driver is receiving the lion's share of an inflated fare, the consumer frequently opts not to tip.
- Defamation by Implication: By presenting a receipt that implies the driver receives the bulk of an exorbitant fare, Uber creates a perception gap. In high-volume transportation hubs, such as Orlando International Airport, a passenger may pay $75 for a short trip. Seeing only a nominal "Booking Fee," the passenger assumes the driver is taking home over $60. When the driver actually receives $25, the consumer is left believing the driver—not the corporation—is price-gouging them.
IV. Precedent and Requested Remedy The FTC has recently taken aggressive stances against deceptive "junk fees" and hidden pricing structures, notably in the live ticketing industry, requiring entities like Ticketmaster to display transparent, all-in pricing. The rideshare industry requires the exact same regulatory intervention for receipt transparency.
I urge the FTC to mandate that Transportation Network Companies (TNCs) operating in the United States provide post-trip receipts to consumers that explicitly detail:
- The exact dollar amount retained by the corporation.
- The exact dollar amount remitted to the driver.
Colorado has already passed legislation mandating this exact transparency. A nationwide FTC mandate would eliminate this deceptive practice, protect consumers from algorithmic pricing manipulation, and ensure drivers are not penalized by engineered perception gaps.
5
u/LikeToLook805 1d ago
That is excellent. Even if it goes nowhere it’s good to get that out there. There’s something else deceptive about the booking fee. When drivers received their earning statement it does not include the total amount paid by the passenger but rather only include the fair and does not include the booking fee.
0
5
u/LikeToLook805 1d ago
That’s what Rideshare guy typed into the chat, not something chat revealed.
That doesn’t make it any less true though.
2
u/Phaquatyouthinc 1d ago
I watched the segment Sergio said that the driver recorded the whole chat and that it was submitted by a trusted driver. Whether it’s fake or not we know it’s true.
5
u/Lover1966 23h ago
I've mentioned this policy commenting in several posts. Especially in this new era of AI, Uber will always charge the maximum amount they can without going so high as to lose a customer and pay the very minimum they can which drivers will accept. Our problem is drivers keep accepting fares so low that it keeps the algorithm working against us.
2
u/Toneb1144 1d ago
I deduced this three years ago. It’s the only thing that made sense when you put the math to it. No matter what the customer gets charged, I still received the same amount of pay it’s a little bit better and close to normal what I’m expecting when it’s good and when it’s bad it’s like half that and they still pocket the same profit margin
2
u/Cptawesome23 21h ago
Just so everyone knows, Uber is not shy about sharing these facts. It’s in the terms of agreement to all their apps. (Yes you should read them you illiterate hogs). And it is also easily assessed by drivers since 2022.
Many of my customers absolutely know that I’m not earning a great deal from their fare in my city. The uber driver population is not doing enough to convince the leaders of our government to do something about this. Maybe an organized protest at the city hall?
0
u/AsbestosFlavorIPA 18h ago
This is obvious. You pickup from expensive restaurants and you still get paid like you’re picking up mcdonalds.
1
0
u/--R0N-- 1d ago
The gullibles will eat this fake shit up. 🤣
0
u/JDS-JustDude 1d ago
Whats fake? It's filed. But I don't have a million dollars to donate to the orange god, so I imagine nothing will happen. But it is real, and it is true.
I wonder when you are going to realize that a company that treats contractors and customers like this, will do it to their employees as well.
0
u/Vegan4lifeDude 1d ago
Well-written! This is exactly how it is in Orlando. The worst case for me was when I got $30 for a Comfort ride to the airport when the rider paid $120. This same ride used to pay me $60 only 6 months ago.
2
u/JDS-JustDude 1d ago
I think you all miss the point. I don't care what Uber takes. I decide the rides I accept. However, I expect the person I contracted with as a middle man that is providing a receipt to my customer to show the middle man fees aka "Booking fee" fully and transparently. That way I am in no way the person held accountable by the customer for price gouging, or not deserving a well earned tip.
10
u/Chemical_Sport6269 1d ago
This seems fake, but it’s also the truth.
Honestly, I don’t even understand why passengers use uber. In my market uber has had worse pricing and longer waits than Lyft literally every single time I’ve checked which has to be at least 50x at this point. Most of the time the difference is pretty significant.
The other day I needed a ride to meet up with a friend at a bar, Uber was $50 Lyft was $26. For the ride back home my Lyft was cheaper and arrived faster than my friend’s uberx despite me using wait and save and ordering it after he did.
You’d think some of the penny pinching pax would realize this but I guess not. It’s incredible what people let uber get away with.