Jeff Chiu / AP

A new lawsuit filed in Brooklyn federal court accuses Uber of not disclosing that it calculates riders' fares differently than for drivers, according to Fast Company. A similar one has been filed in San Francisco.

Why it matters: Uber's revenue mostly comes from the cut it takes from each ride's fare, so unsurprisingly, it's constantly tweaking its pricing strategies. Unfortunately, it's already amassed a lot of distrust from its drivers, who often feel cheated by the company, and Uber's new "upfront pricing" is increasingly frustrating both drivers and riders.

After it rolled out "upfront pricing" last year, some drivers and riders began to notice differences between the price of some rides and what drivers were paid. Uber explained at the time that it sometimes overestimates a route (causing the rider to pay more), and sometimes underestimates it (causing the company to pay the difference to the driver). It also said that its driver agreement states that driver earnings are calculated based on miles and minutes driven, not the final price of a ride.

The criticisms:

  • Fare cuts: One of Uber's most controversial price cuts occurred every year in January across dozens of cities (it discontinued them this year). Uber claimed it was to spur demand during the post-holidays slump, though it didn't stop drivers from protesting the cuts.
  • Increasing commissions: Uber has tweaked the percentage cut it takes from drivers in various ways, frustrating drivers who see their earnings drop.
  • Artificial "surge pricing" Riders have questioned whether Uber sometimes artificially hikes prices without there being a high demand.
  • Pocketing extra money: Uber's "upfront pricing" has been controversial among drivers who feel their earnings should be calculated based on higher fares when they occur. Uber also revealed recently it's now charging more for certain popular routes.

Go deeper

Updated 24 mins ago - Politics & Policy

Voters in Wisconsin, Michigan urged to return absentee ballots to drop boxes

Signs for Joe Biden are seen outside a home in Coon Valle, Wisconsin, on Oct. 3. Photo by KEREM YUCEL via Getty

Wisconsin Democrats and the Democratic attorney general of Michigan are urging voters to return absentee ballots to election clerks’ offices or drop boxes, warning that the USPS may not be able to deliver ballots by the Election Day deadline.

Driving the news: The Supreme Court rejected an effort by Wisconsin Democrats and civil rights groups to extend the state's deadline for counting absentee ballots to six days after Election Day, as long as they were postmarked by Nov. 3. In Michigan, absentee ballots must also be received by 8 p.m. on Election Day in order to be counted.

32 mins ago - Technology

Facebook warns of "perception hacks" undermining trust in democracy

Photo Illustration: Sarah Grillo/Axios. Photo by Jamie Squire/Getty Images

Facebook warned Tuesday that bad actors are increasingly taking to social media to create the false perception that they’ve pulled off major hacks of electoral systems or have otherwise seriously disrupted elections.

Why it matters: "Perception hacking," as Facebook calls it, can have dire consequences on people's faith in democracy, sowing distrust, division and confusion among the voters it targets.

Obama: Trump is "jealous of COVID's media coverage"

Former President Barack Obama launched a blistering attack on President Trump while campaigning for Joe Biden in Orlando on Tuesday, criticizing Trump for complaining about the pandemic as cases soar and joking that he's "jealous of COVID's media coverage."

Driving the news: Trump has baselessly accused the news media of only focusing on covering the coronavirus pandemic — which has killed over 226,000 Americans so far and is surging across the country once again — as a way to deter people from voting on Election Day and distract from other issues.