A class action lawsuit filed in federal court alleges that Uber's surge pricing algorithm constitutes illegal price fixing, arguing that the app coordinates prices among independent contractor drivers in violation of antitrust law.
The Legal Argument
- 2.8 million class members (affected riders)
- Surge pricing raises fares 2-8x during peak demand
- Plaintiffs argue algorithm coordinates pricing among competitors
- Seeking: refund of surge premiums + treble damages
If successful, the case could fundamentally reshape how ride-sharing companies price their services. Uber argues surge pricing is necessary to incentivize drivers during high-demand periods.
