Uber to pay US$20 million to settle long-running legal battle with drivers

Uber to pay US$20 million to settle long-running legal battle with drivers

Uber Technologies Inc has agreed to pay US$20 million to settle a lawsuit brought by drivers nearly six years ago, according to court filings, resolving one of its many legal battles with drivers ahead of a hotly anticipated initial public offering this year.

FILE PHOTO: Uber's logo is displayed on a mobile phone in London
FILE PHOTO: Uber's logo is displayed on a mobile phone in London, Britain, September 14, 2018. REUTERS/Hannah Mckay/File Photo

SAN FRANCISCO: Uber Technologies Inc has agreed to pay US$20 million to settle a lawsuit brought by drivers nearly six years ago, according to court filings, resolving one of its many legal battles with drivers ahead of a hotly anticipated initial public offering this year.

Drivers for the ride-hailing company argued in the lawsuit they were employees, not independent contractors, as Uber has classified them, and therefore entitled to benefits and reimbursement for their expenses. The settlement amount is one-fifth of the US$100 million settlement offer Uber proposed in 2016 to resolve the case, which a judge at the time rejected as an inadequate amount.

(Reporting by Heather Somerville; editing by Jonathan Oatis)

Source: Reuters

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