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Uber Penalized for overcharging people with disabilities!

The Justice Department stated that it settled a case with Uber Technologies Inc.

that alleged the ride-hailing company wrongfully charged wait-time fees to passengers with physical disabilities.

The Justice Department said that, as part of a settlement, Uber will offer several million dollars in compensation to more than 65,000 disabled users.

Under the settlement,

Uber will “offer several million dollars in compensation” to more than 65,000 users who, due to their disability, needed more time to enter a car and as a result, charged extra for a waiting fee, according to the Justice Department’s statement

*WSJ Tweet on Uber settlement case with Justice Dpt.

The wait-time fee usually applies two minutes after a standard Uber arrives at a pickup location.

The average wait-time fee charged to riders is less than 60 cents.

In November,

the Justice Department asked in a suit filed in the U.S. District Court, that Uber modify its wait-fee policy and pay unspecified monetary damages and civil penalties.

  • Uber said it modified its wait-time policy shortly before the suit was filed last year.

“This agreement sends a strong message that Uber and other ride-sharing companies will be held accountable if their services discriminate against people with disabilities,” Kristen Clarke, an assistant attorney general at the Justice Department said.

*The company’s shares were up around 6% in midday trading.