The End of the Uber Model in View?
Many consumer lawyers are holding their breath. Since Uber has come into being, a whole new cottage industry has taken hold in tort law. Drivers are suing for worker’s comp benefits, and lawyers are suing for negligent hiring.
Since the drivers are required to carry more than minimum coverage, lawyers are finding it easier to get clients paid. So although more people are getting hurt as passengers, there is money to pay them.
In any event, shareholders ousted the CEO of Uber, Travis Kalachnik, after a string of failures. The ride-sharing company's reputation, already weak, plummeted in the last several months. Between rapes, assaults, legal issues, and crashes, it stands on the brink of collapse. There were several other shakeups. Will this one solve the many problems Uber faces?
Business Insider reported on the possible successors. Regardless of who the company chooses, there's still a huge underlying issue. Business Insider also reported that the actions face the death of a potential IPO.
QZ reports that the company may poach a top Alphabet official. That may be, but it is likely too little too late. Also, consider the last time Uber did that and its results.
Why Do Rape, Sexism Suits Dog Uber?
Further Knowledge by Uber is Forthcoming?
Fortune reported on a recent suit against the company regarding sexism. In one high-profile lawsuit, a woman claims an Uber driver tried to rape her. But why is this happening so much? There are mass reports and allegations of sexism against both men and women. One woman wrote that even after meeting with HR many times nothing changed. In the most recent case, another significant allegation emerged. It was so great that Uber's Vice President resigned. The company hired former US Attorney General Eric Holder to represent them regarding the controversy.
Another Uber Rape Alleged?
Ars Technica reported on an isolated but more severe case. The suit is crystal clear: "Uber has placed profits over safety by deliberately lowering the bar for drivers." A Minnesota woman alleges that one of Uber's drivers attempted rape in August 2016. The suit states that the driver, Abdel Jaquez, came on to her.
After she had refused, he tried to rape her, it alleges. The lawsuit also states that Jaquez had a prior criminal record against another woman. The suit says that a simple fingerprinting and background check would have caught the issue before it unfolded.
Furthermore, Uber's woes stem from its decentralized model. Due to its use of contractors as drivers, it has little control over their background and conduct. This check is part of the reason that so many allegations of sexual assault emerged.
The reasons why these rapes are happening seems clear. The current management system incentivizes other criminal and ungentlemanly behavior among drivers. There's a reason many cities outlawed the app. It provides an unnecessary risk for others on the road and passengers.
Are you looking for a way to get involved? Our site follows news of misconduct by Uber and Lyft drivers. Keep reading to find out more about efforts to protect riders. Our team is always ready to answer any questions or discuss your legal options. Ehline Law is among the leaders in the fight to uncover as much information as possible.
Uber Under Fire in the UK
Uber is under scrutiny yet again for its shady business practices. The city of London banned the US-based company for many of its policies. To the trained eye, it's no major surprise. Uber flouted some local ordinances and British law for years. The company almost relished getting away with things no other company could. Now the bell tolls for Uber.
Uber is not only banned from Britain's capital but also faces a closer look for many of its other practices. Its shady way of hiring and retaining employees is also under fire, the Guardian reported. Now Uber's London transport license is no more and pending appeal.
Why Did Uber's President Resign?
Jones Leaves Uber Under Storm of Controversy.
The President of the embattled ride-sharing company Uber stepped down in a haze of accusations. Jeff Jones lasted only about six months in his position. Also, during this period critics and governments accused Uber of various legal and civil issues.
Recode covered the breaking news Sunday. Jones wasn't the president of the ride-sharing company for even a year. He leaves under a cloud of controversy. Furthermore, many concerns rose about allegations of drivers and sexual harassment and sexism. Uber confirmed the move, saying that the President didn't see a future at the company. Jones, for his part, said that the firm's path was contrary to his own "beliefs and approach to leadership."
The news reports that Jones did not expect such a turbulent period with Uber. Recode called it a "very troubled ship." Jones was a former leader at Target. While his resume was impressive, the rot within Uber was not. Uber faces multiple controversies regarding sexism, assaults, and more.
An Uber driver attempted to rape a passenger in one case. In another, a former employee accused the company of rampant sexism. The company saw multiple resignations over the last several months. Furthermore, its model is increasingly unstable. Young riders will soon drift away from the poor service. Just the other day, Italy banned Uber as unfair competition.
Greyball Scandal Shows Uber's Disrespect for the Law
Another Brick in the Wall of Deceit.
Uber's had quite a losing streak lately. The ride-sharing service is repeatedly on the hot seat for allegations of fraud and violence from its drivers. The company itself is under some investigations and a high-profile fight with Google. Also, as if the news couldn't get worse, the company regularly deceived law enforcement for years.
Wired called the situation a "terrifying pile of problems." A Cincinnati story shows how Uber systematically mistreats drivers. Another case brought by drivers seeks collective bargaining rights. And multiple lawsuits accuse Uber drivers of violence. But so far, it seems like it's just the tip of the iceberg.
Greyball and Fraud.
The recent Greyball revelations are damning for the company. And the New York Times even reported on the growing controversy. However, Uber services are still used across the world, including Boston and Las Vegas, in the States.
The ridesharing program began in 2014 and is still in use. Uber's organization was directly approved and developed by the company's legal team. Still, many cities and locations banned Uber's services after concerns over safety. But Uber deliberately deceived local officials on the nature of the rideshare program to keep it going.
So now these issues show complete disrespect for local law enforcement and communities. Each town and city have the statutory authority to allow or disallow certain types of business. Additionally, these municipalities are well within their rights to keep dangerous agencies and persons out and keep residents safe. Thus, we see the many bad decisions by ride-sharing apps.
We know that Uber as fought law enforcement for years. However, the ride-sharing service will not stop there. Furthermore, local and state law enforcement does its best to prevent assaults and fraud. Uber doesn't respect that at all.
A Graying Landscape.
Each one of these issues is another nail in Uber's coffin. Companies such as Uber and Lyft will likely survive. But their model is aging. Many riders are sick of inappropriate treatment, a potential for violence, and a lack of recourse. Many cities moved to ban or restrict the practice.
For more info about Uber and its issues, keep the dial here. Ehline Law reports on the problems of the day. We profiled the company in the past, including the many suits against them. Their issues will not go away. Press freedom and more light are some of the solutions. To recap, be careful when you call that driver or use that app.
Part of a Wider Issue?
However, Uber doesn't seem to be mending its ways. Furthermore, this comes after some issues in the United States and beyond for the company's disrespect of local laws. Several drivers assaulted passengers-- including sexual assault. Each one is a severe issue that needs to be addressed by the company.
So, what is Uber's next move? Sad to say, experts, don't know. The ridesharing company appears to double down. Furthermore, it flouts local, state, and national regs. All of these are a potential danger for the passenger and those on the road.
Take, for example, the fact that Uber does not require a close look at a driver's record. While they review their license, some Uber drivers are convicted felons. In other cases, the Uber driver is a very poor motorist.
When you get into a car with such a driver, this isn't clear. Each state and city has a job to do: to ensure the safety of its citizens and visitors. Uber makes that job harder every step of the way. Perhaps London's ban is a significant step towards the company's future reform or fall. Both might be necessary.
Is The Future Of Uber in Doubt?
All of these factors alone may kill any other company. Considering the long line of legal issues and lies from Uber, this may be the last straw. Its other officers implicated in similar actions, the company may be better off just starting from scratch.
Where does this leave the average consumer? It appears that the regular consumer is out in no man's land. They already complained about poor service. Now they also face the end of whatever bit they already had. For the average rider, there is no sharing of the misery the corporate leadership created.
Ehline Law's been out front on these types of issues for years. We've covered the potential risks for drivers and consumers alike using Uber or Lyft. Furthermore, the risks don't just end with Kalachnik gone. However, maybe they'll get just a little bit better instead of getting worse.
So personal injury lawyers may need to look to Lyft as a source of defendants. But ultimately, what this means to PI accident lawyers is that other defendants could replace Uber. In any event, it appears Uber could be in for some serious trouble.