Uber Nears Settlement After Pocketing Half of Drivers’ Tips

Uber Technologies got the green light on Thursday to settle claims it pocketed about half of a 20 percent “gratuity” charge that passengers thought they were paying to drivers.

The logo of the ride-sharing service Uber in front of its headquarters in San Francisco. (Credit: Justin Sullivan / Getty Images)

The logo of the ride-sharing service Uber in front of its headquarters in San Francisco. (Credit: Justin Sullivan / Getty Images)

U.S. District Judge Edward Chen in San Francisco, who is also presiding over a separate lawsuit against Uber concerning the classification of drivers, granted preliminary approval of a settlement in which Uber will create a fund of $343,861.46 to pay 46,882 customers who used the app over a one-year period.

Payment will be limited to customers who received a promotional email between April 20, 2012 to March 25, 2013 advertising that 20 percent of a ride’s fare was for gratuity. Uber drivers won’t receive any additional payment through the settlement.

Each affected passenger will receive an amount equal to 40 percent of the gratuity charge, which is “essentially a full refund,” the plaintiff attorney said in court documents.

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