Jan 4, 2019

The End of the Uber Model in View?

Mini van versus car accident.
Beverly Hills car crash involving minivan.

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?

The LA Times reported that while Kalachnik is gone, a class action suit still hangs around his shoulders. Wired openly wondered why more employees aren't suing the company.

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.

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.