The feds are probing accusations that Uber has been bilking clients because the ride-sharing big winds down its “Uber Rewards” loyalty program, The Submit has realized.
In August, Uber mentioned that starting Nov. 1 it's going to scrap Uber Rewards — a program launched in 2018 that makes use of a free, points-based system to dole out perks like complimentary rides and discounted meals deliveries — to deal with its paid subscription service, Uber One.
The Federal Commerce Fee, nonetheless, has launched a casual investigation into complaints that Uber is making it troublesome to redeem Uber Rewards factors forward of expiration, sources near the scenario instructed The Submit.
The corporate in August despatched clients an e-mail asserting it was ending this system, in accordance with a report. However some mentioned they by no means acquired any emails and “didn’t even know” it was ending. One supply who has amassed greater than 20,000 factors — price almost $150 in rides — mentioned he was repeatedly met with a message saying, “Sorry, one thing is improper — please strive once more later” as he tried unsuccessfully to redeem them.
“Uber simply needs to apologize for an error — not really pay out the cash,” the irate buyer instructed The Submit.
By the tip of the month the company may announce a extra formal investigation into Uber ending its perk program, a supply near the FTC instructed The Submit. The supply added that Uber ought to lengthen the chance for customers to redeem factors on account of the glitches.
The FTC probe comes as Uber’s former chief safety officer Joe Sullivan final week was slapped with prison obstruction expenses for failing to report a cyber hack to federal authorities. Sullivan, who paid a $100,000 “bug bounty” to a hacker in 2016 to guard customers’ knowledge tried to forestall regulators from discovering out in regards to the fee, the FTC alleged. Sullivan may face eight years in jail.
“The feds have been enjoying shut consideration to Uber — from the continued hacks that danger shoppers’ private info to this scam-like rewards program nonsense,” a supply near the FTC added. “Backside line is that there’s an Uber ‘pool’ of issues the corporate is going through internally.”
Whereas it’s not clear how a lot cash Uber may save by ending this system with out correctly paying out factors, individuals near the FTC imagine it may very well be within the thousands and thousands.
Uber CEO Dara Khosrowshahi instructed Bloomberg in August that his focus on the firm is “profitability” as the corporate’s inventory has tanked greater than 35% over the previous yr. Individuals near Khosrowshahi say he has checked out each piece of the corporate — together with rewards program — and whether or not it helps the corporate’s shareholders.
Starting Nov. 1, Uber will supply all clients a free monthlong trial of Uber One. However the nice print reveals that enrolling customers will robotically be renewed until they choose out, placing them on the hook for a $9.99 month-to-month payment.
Defending customers from glitchy rewards applications has been a spotlight for the FTC over the past decade. In 2010, the company carried out a rule that ensured corporations needed to honor present playing cards for not less than 5 years and that the cash on these playing cards couldn’t expire earlier than then.
An Uber spokesperson didn’t reply to requests for remark.
An FTC spokesperson declined to remark.
Post a Comment