Uber has received preliminary approval to settle a consumer lawsuit over tipping practices, with the company agreeing to pay roughly $384,000.
According to Bloomberg Technology, the settlement resolves claims that Uber misled riders by displaying a 20 percent “gratuity” while drivers received only about half of that amount.
U.S. District Judge Edward Chen in San Francisco granted permission for Uber to distribute approximately $384,000 to about 47,000 users of the ride-hailing app.
That payout is significantly less than the total amount Uber reportedly collected from the contested gratuity charges; the company is said to have taken in around $860,000 from the practice.
The case has renewed discussion about whether riders should tip drivers for services provided by Uber and similar platforms. Coverage from Travel Pulse noted that tipping is appreciated but generally not expected. Drivers interviewed for that piece said they would not penalize a passenger’s rating for failing to leave a tip, though they do welcome gratuities when offered. In contrast to Uber’s early policies, drivers now accept tips directly when passengers choose to give them.