The Federal Trade Commission (FTC) has now set its sights on Uber. The FTC sued ride-hailing giant Uber on Monday, alleging “deceptive” billing and cancellation practices in its Uber One subscription service, according to a media release.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chairman Andrew Ferguson said in a press release.
The FTC has alleged that the company charged customers for Uber One, a service for fee-free delivery and discounts on rides, without their consent and made it too difficult for them to cancel, despite the company’s “cancel anytime” marketing.
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Uber has pushed back against the FTC’s allegations. Its lawyers that represented the company throughout the FTC investigation, including former FTC Chair Tim Muris and former FTC Commissioner Christine Wilson, called it a “rushed investigative process” and said the complaint was based on “misunderstandings.”
They added that they were disappointed that the FTC chose to move forward with this action, but that they were confident that the courts will agree with what everybody already knows: that Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law. The company went on to explain in a statement that Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less.
What is Uber?
Uber is a global technology company founded in 2009 in San Francisco, California, by Garrett Camp and Travis Kalanick. It is best known for its ride-hailing service, which allows users to book rides through a mobile app. The app matches users with nearby drivers, providing real-time tracking, fare estimates, and cashless payments.
Beyond ride-hailing, Uber has expanded into various services, including Uber Eats for food delivery, Uber Freight to connect shippers and trucking companies, and micro-mobility services such as e-bikes and scooters in some cities. The company has also invested in autonomous vehicle technology.
Operating in over 60 countries and hundreds of cities, Uber has revolutionized transportation and logistics, though its business model, based on independent contractor drivers, has sparked debates over job security, pay, and worker rights. Despite challenges, Uber remains a leading force in the gig economy and the mobility industry.
This move comes after the FTC has been battling tech giants Google and Meta over antitrust lawsuits in the past few weeks.