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Uber claimed that it uses industry leading background checks to vet their drivers and now those words are coming back to bite them where it hurts most-the bank. The rideshare service is about to pay at least $10 million for misleading customers.
According to Time, district attorneys in San Francisco and Los Angeles filed lawsuits in 2014 over such claims and argued that taxi drivers are actually more thorough because they include fingerprint checks. Somewhere, disgruntled taxi drivers are honking their horns in victory.
Rather than argue, Uber decided it was in their best interest to settle. It’s hard to argue when you’ve got cases of drivers assaulting or threatening their riders. But to be fair, there’s probably a greater number of riders who are a danger to drivers.
If they don’t comply with all of agreed terms, they will need to pay an extra $15 million. After agreeing to settle in a previous case, the company had already agreed to stop claiming that their background checks were top notch.