We have previously covered developments in the Uber class action saga here and here. A settlement of one of the class actions has reportedly now been proposed, but it still must be approved by a San Francisco federal judge. The settlement provides a $100 million payout to drivers, which equates to a payout per driver of between twelve dollars to a few thousand dollars, depending on how many miles they drove. However, the deal is apparently contingent upon Uber’s company valuation increasing by 150 percent. There are also non-monetary provisions included in the settlement which are set to expire in two years (but they can be extended if Uber so decides). According to an industry blogger, the following is a sampling of some of the non-monetary provisions of the settlement:
- Uber will publish a deactivation policy for the first time;
- There will be an appeal process following deactivation;
- Drivers can post signs for tips in their vehicles; and
- There is no more deactivation for low acceptance rates.
The blogger also expressed discontent with the settlement, and his post apparently received over 100 comments. A hearing on the proposed settlement is set for June, and it will be interesting to see whether the settlement is approved.