Uber alleges in a new lawsuit that two Colorado laws aiming to improve transparency for delivery and ride-hailing app drivers will violate its right to free speech.
which was signed into law last year, mandates that ride-hailing companies like Uber and Lyft show their drivers how much a customer will be charged and detail how much will go to the driver, versus the company. , also named in the lawsuit, prohibits delivery companies from decreasing the amount they pay a driver based on the consumer’s tip, and mandate companies pay drivers the entire tip amount.
“The acts do not just compel speech, they compel Uber to shout the state’s message,” according to the lawsuit, filed Saturday by San Francisco-based Uber Technologies.
Parts of the laws also “compel Uber to express the state’s viewpoint that Uber does not sufficiently compensate its drivers, a controversial and inaccurate message Uber cannot be compelled to express without offending core First Amendment principles,” according to the lawsuit.
Uber alleges that the information they’re required to disclose under one of the bills paints an incomplete picture of the company’s compensation structure by excluding information about tolls, fees and insurance costs.
“If a ride costs $24 and a driver earns $16, without proper context it appears like Uber made $8 in revenue, but it is not that simple,” according to the lawsuit.
Under SB-75, companies must also provide the distance of the ride when it’s offered to drivers. That, along with other required disclosures, must be “prominently displayed” in the largest font on a driver’s screen. The lawsuit alleges the requirement is part of an attempt to “shame Uber.”
HB-1129 requires that the full tip amount go to drivers, and it prohibits delivery companies from decreasing a driver’s share of a delivery fee based on how much of a tip they receive.
The lawsuit, filed in U.S. District Court in Denver, asks the judge to issue a temporary restraining order prohibiting the laws from being enforced. SB-075 is set to begin enforcement Feb. 1. HB-1129 went into effect Jan. 1.
In a news release, the railed against the lawsuit, saying the laws require basic transparency from ride-share and delivery companies.
“Uber’s last-minute legal maneuvering to block these laws represents a cynical attempt to evade accountability and continue concealing its exploitative practices and price gouging behind hidden algorithms,” the release says.
The union group goes on to say the laws are intended to shed light on “practices that many suspect are unfairly skewed against drivers and consumers.”
A spokesperson for Gov. Jared Polis said his office had no comment on the pending litigation.
Updated at 5:29 p.m. Jan. 15, 2024:Due to incorrect information from a source, this story originally mischaracterized one of the bills targeted by Uber's lawsuit. The story has been corrected.
