Uber Sued Over Cancellation fees

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uber cancellation fees lawsuit

Uber Sued Over Cancellation fees

A class action lawsuit has been filed against Uber over its cancellation fees. The lawsuit also claims that its Terms of Use are unfair and violate the law.

Allegedly, Uber misleads customers into believing that a cancellation fee is charged when a customer cancels a ride, in order to compensate drivers for their time. However, Nicolas A. Manzini who filed the lawsuit, says Uber charges a cancellation fee of $5 even when it is the driver, not the customer, who cancels the ride. Uber will not refund the cancellation fee to a customer until and unless the customer asks Uber to review the cancellation fee.

Additionally, the cancellation fee is not refunded in the original payment method, but instead the fee is refunded in the form of “Uber credit” or “Uber cash.” The suit charges that Uber Credit and Uber Cash cancellation refunds are “seldom sufficient” to cover most Uber fares. That means that you usually need to spend even more in order to use that $5 credit.

This is line with Uber’s stated Terms of Use, but Manzini says that Uber unlawfully holds and detains customers’ funds.

The lawsuit alleges Uber’s Terms of Use constitute an “unenforceable contract of adhesion,” as the majority of consumers who download the Uber app “unwittingly agree to waive their right to a trial by jury” and pursue class action litigation no matter the nature of their claim against the company.

Lawsuit Details

The Uber Unfair Cancellation Fee Class Action Lawsuit is Nicolas A. Manzini v. Uber Technologies Inc., Case No. 1:19-cv-24387-PCH, in the U.S. District Court for the Southern District of Florida, Miami Division.

Based in NYC. Points/miles enthusiast for years and actively writing about it for the last two years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

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  1. For all the passengers type the original address or some business name where you can be easily get in the car not a geological pin .. and request the ride when you r ready or send them a quick msg .. that’s gonna be easy for all of us …

  2. As a Driver, I only cancel when I am at the location and wait the 5+ minutes for the pax to arrive. If they do not then i attempt to call and then i cancel. If you think that my time isn’t worth the cancel fee then you are wrong. It sometimes takes 20+ minutes to get to the pickup location plus the 5 minutes we are required to wait, so that is 30 minutes of our time that we should be paid for. Yes there are some drivers who will abuse the system to get that 3.75(you may pay 5, but we do not get it all), but they are a small number.

  3. Been hit like that several times here and in the US. They say I was not at the spot he was, or they just sit 1 min away. Had them take me to the wrong place and then want more money to take me to the correct location. I generally will wait days before giving 1 star to a crappy Uber driver.

  4. same here in NYC. the driver kept lying to me saying he is near. even the app tracking says 1 min but he kept me waiting outside my hotel and cancelled the ride. I had to contact uber for refund. It is a scam

    • I drive Uber/Lyft in NYC, when driver cancels, it increases his cancellation rate with some negative consequences. I assume that unfair cancellations are rare, since uber knows the exact location of the driver. But passengers cancelling the ride is a big problem, especially in manhattan, when you turn and get cancelled just because the passenger is trying to request multiple time till he gets someone from bette position or better car. After each request driver has to do some moves which comes to no use if you cancel, and since the passenger doesn’t get charged in first two minutes or if the driver doesn’t make progress to the location many game it. Sometimes I get cancelled 10 times in a row, this is why I go offline if I’m at rush hour in midtown which makes your ride more expensive. I’d only cancel if someone requests on a bus lane or yells on the phone. If the driver hides and waits 5 minutes somewhere near, cancels to get $5 fee he deserves to be banned, but there is no incentive for the driver to do that. I’d suggest to type in the address instead of geolocating, IMHO that will prevent most of the driver-side cancellations.

  5. Victim here. It was a cold winter day in DC so I waited inside the building next to the street, the driver canceled the ride without notifying me because I wasn’t by the curb and I had to suck up the $5 just like that. I later contacted customer service, they issued a goodwill $5 credit, but the original cancellation fee of $5 was charged nonetheless.

    • So you think the driver should sit there waiting, risking a ticket, because you don’t want to wait where you’re supposed to?
      They don’t get paid unless they wait 5 minutes. 5 minutes is a long time.


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