Key Takeaways
- FTC Lawsuit: Uber (UBER) is being sued for deceptive billing and difficult cancellations related to its 30 million Uber One subscribers.
- Consumer Protection: The FTC targets misleading subscription practices in the tech industry, highlighting consumer harm.
- Uber’s Defense: Uber defends its practices while expanding into autonomous vehicles, with robotaxi plans starting in 2025.
FTC Sues Uber Over Subscription Practices
The Federal Trade Commission (FTC) filed a lawsuit against Uber on Monday, accusing the company of deceptive billing and cancellation practices tied to its Uber One subscription. The FTC claims Uber violated consumer protection laws by enrolling users without consent, making cancellations difficult, and misleading customers about savings. Uber One, launched in 2021, costs $9.99 monthly or $96 annually, offering perks like fee-free delivery and discounts. However, the FTC argues the advertised savings are misleading, as they don’t factor in membership fees. Some users also reported being charged after cancellation. This lawsuit marks the FTC’s first major action against a tech company since President Trump began his second term.
Uber is also advancing its role in autonomous vehicles, announcing a partnership with Cruise to introduce robotaxis on its platform in 2025. In addition, Slate Auto, a new electric vehicle startup, plans to launch customizable, affordable vehicles under $20,000 by 2026. Uber’s CEO, Dara Khosrowshahi, emphasized that Uber’s platform offers critical support for scaling autonomous vehicle services like those from Cruise, which is recovering from regulatory challenges.
Political Context and Uber’s Response
FTC Chair Andrew Ferguson has prioritized Big Tech scrutiny under the Trump-Vance administration, stating, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel.” Uber and CEO Dara Khosrowshahi, who each donated $1 million to Trump’s inaugural fund, are among tech figures seeking alignment with the administration. In response to the lawsuit, Uber said it is confident courts will find in its favor.
A company spokesperson emphasized that Uber One’s cancellation process is simple and can be completed in-app within 20 seconds. Still, the FTC maintains that Uber’s practices were misleading and harmed consumers. As of December, Uber reported around 30 million Uber One subscribers, highlighting the scale of the issue and the potential impact of the alleged violations.
Uber and Volkswagen’s Autonomous EV Partnership
Meanwhile, Uber has also announced a strategic partnership with Volkswagen Group of America’s autonomous mobility subsidiary, Volkswagen ADMT, LLC, to deploy a fleet of all-electric, fully autonomous ID. Buzz AD vehicles in U.S. cities over the next decade, beginning in Los Angeles. Testing is expected to start later this year, with a commercial launch targeted for 2026.
MOIA, Volkswagen’s autonomous mobility brand, will provide the tech and operational platform behind the rollout. During the early phases, human operators will be on board to ensure safety and support system refinement. Executives from both companies—including Uber’s Khosrowshahi—hailed the collaboration as a milestone in advancing urban transportation, combining Volkswagen’s manufacturing scale with Uber’s mobility platform to bring next-generation autonomous vehicles to millions of riders in the years ahead.
