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The Federal Trade Commission filed a lawsuit against Uber, alleging that the company charged customers for its Uber One subscription service without their consent. The lawsuit also claims that Uber failed to deliver the promised savings and made it difficult for users to cancel despite the “cancel anytime” promises.
Uber has denied any wrongdoing and criticized the FTC for rushing the investigation process and making claims based on “unvetted allegations.”
FTC’s Complaint and Allegations
The FTC’s complaint alleges that Uber customers were promised savings of $25 a month, but the company did not consider the subscription cost when calculating the savings. The complaint also states that Uber made it challenging for customers to cancel the subscription, requiring them to navigate through multiple screens and actions.
Uber’s Response and Legal Battle
Uber clarified that customers can now cancel within the app and that the sign-up and cancellation processes are clear and simple. The company is confident that the courts will agree with their practices and states that cancellations can now be done in-app within 20 seconds or less.
The plaintiffs are seeking to prohibit Uber from continuing its alleged deceptive practices and to provide monetary relief. Uber’s spokesperson expressed disappointment in the FTC’s actions, while the company’s legal counsel criticized the rushed investigative process and the addition of new allegations at the last minute.
Uber One’s Membership and Growth
Uber One had a member base of 30 million across 34 countries in 2024 and was growing at a rate of approximately 60% year-over-year. Uber’s CEO estimated that the membership fees would exceed $1 billion in 2024.
