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 ridesharing company’s reputation, already weak, plummeted in the last several months. It stands on the brink of collapse between rapes, assaults, legal issues, and crashes. 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 substantial underlying issue. Business Insider also said 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 Does Rape and 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 nothing changed after meeting with HR many times. 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 its background and conduct. This check is part of why so many allegations of sexual assault emerged.
The reasons why these rapes are happening seem 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 fighting 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 banned from Britain’s capital and faces a closer look at many of its other practices. The Guardian reported that its shady way of hiring and retaining employees is also under fire. 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 ridesharing 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 ridesharing company for even a year. He leaves under a cloud of controversy. Furthermore, many concerns arose about allegations of drivers and sexual harassment and sexism. Uber confirmed the move, saying 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 ridesharing service is repeatedly on the hot seat for allegations of fraud and violence from its drivers. The company itself is under some investigation 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 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 worldwide, including in 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 safety concerns. 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 within their rights to keep dangerous agencies and persons out and residents safe. Thus, we see the many bad decisions by ridesharing apps.
We know that Uber has fought law enforcement for years. However, the ridesharing 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, the 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 of the company’s disrespect of local laws. Several drivers assaulted passengers– including sexually 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 disregards local, state, and national regs. 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.
This isn’t clear when you get into a car with such a driver. 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 Doubt?
All of these factors alone may kill any other company. Considering Uber’s long line of legal issues and lies, 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 have 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 using Uber or Lyft. Furthermore, the stakes don’t just end with Kalachnik gone. However, maybe they’ll get a little 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, Uber could be in for some serious trouble.
Michael is a managing partner at the nationwide Ehline Law Firm, Personal Injury Attorneys, APLC. He’s an inactive Marine and became a lawyer in the California State Bar Law Office Study Program, later receiving his J.D. from UWLA School of Law. Michael has won some of the world’s largest motorcycle accident settlements.
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