Customer reveals why Uber won price-fixing suit

The arbitrator only ruled in Uber's favor because he was scared.

By:REUTERS
| Updated on: May 24 2020, 18:04 IST
Uber takes a cut from drivers' earnings, and ride-hailing trips in North America make up the bulk of the company's revenue.
Uber takes a cut from drivers' earnings, and ride-hailing trips in North America make up the bulk of the company's revenue. (Pixabay)

An Uber customer on Friday asked a Manhattan federal judge to overturn an arbitration win for the company in a price-fixing case, arguing that the arbitrator only ruled in Uber's favor because he was scared.

Spencer Meyer initiated the high-profile 2015 antitrust lawsuit alleging that Uber Technologies Inc engaged in an illegal conspiracy with its drivers to coordinate high "surge pricing" fares during periods of heavy demand by agreeing to charge prices set by an algorithm in the Uber ride-hailing app.

You may be interested in

MobilesTablets Laptops
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
4% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
13% OFF
Xiaomi 14
  • Matte Black
  • 12 GB RAM
  • 512 GB Storage

Uber takes a cut from drivers' earnings, and ride-hailing trips in North America make up the bulk of the company's revenue. The lawsuit sought a nationwide ban against surge pricing.

Also read
Looking for a smartphone? To check mobile finder click here.

Also read: Uber says it spent $19 million on coronavirus financial assistance for drivers

Uber argues its drivers are independent contractors and that its app is merely a technology platform connecting drivers with riders. Uber on Friday declined to comment on the court filing.

The company has previously said it believed the law was on its side, pointing to the fact that no antitrust agency has raised issues.

The lawsuit went through several courts before it was sent into arbitration in 2019 in accordance with Uber's terms of service that mandate arbitration behind closed doors for most lawsuits.

The appointed arbitrator, attorney Les Weinstein, on Feb. 22 ruled in Uber's favor and dismissed the lawsuit, but according to Friday's filings he did so out of "evident partiality."

Also read: Uber Connect is now available in 9 Indian cities: Here's how to use it

A transcript excerpt of the arbitration, attached to the filing, cited him saying: "I must say I act out of fear. My fear is if I ruled Uber illegal, I would need security. I wouldn't be able to walk the streets at night. People would be after me."

Weinstein also questioned whether he had the legal power to ban surge pricing nationwide. He did not immediately respond to a request for comment.

Uber has a week to respond to the filing in court.

Reporting by Tina Bellon.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 24 May, 18:02 IST
NEXT ARTICLE BEGINS

Editor’s Pick