Ridesharing – Law Street https://legacy.lawstreetmedia.com Law and Policy for Our Generation Wed, 13 Nov 2019 21:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 100397344 RantCrush Top 5: August 3, 2017 https://legacy.lawstreetmedia.com/blogs/rantcrush/rantcrush-top-5-august-3-2017/ https://legacy.lawstreetmedia.com/blogs/rantcrush/rantcrush-top-5-august-3-2017/#respond Thu, 03 Aug 2017 17:14:09 +0000 https://lawstreetmedia.com/?p=62549

Did Sharknado lead to the Trump presidency?

The post RantCrush Top 5: August 3, 2017 appeared first on Law Street.

]]>
Image courtesy of Malkusch Markus; License: (CC BY 2.0)

Welcome to RantCrush Top 5, where we take you through today’s top five controversial stories in the world of law and policy. Who’s ranting and raving right now? Check it out below:

NAACP Issues Travel Advisory for Missouri

The NAACP has issued its first-ever statewide travel advisory for the state of Missouri. This announcement came after Senate Bill 43 passed the state legislature and was signed by Governor Eric Greitens. The new law makes it harder for employees to prove their protected class status in a lawsuit; critics, including the NAACP, say that it makes discrimination easier and dubbed it a “Jim Crow bill.”

The advisory is intended to let people of color and members of the LGBT community traveling through the state know what’s going on, and to be particularly vigilant. It cites recent instances of police brutality and discrimination in Missouri, and asks that everyone “warn your families, co-workers, and anyone visiting Missouri to beware of the safety concerns with travel in Missouri, notify members of your trade associations, social and civil organizations that they are traveling and living in Missouri at their own risk and subject to unnecessary search seizure and potential arrest, and file and seek help on any existing claims for discrimination, harassment, retaliation, and whistle blowing ASAP before your legal rights are lost.”

Anneliese Mahoney
Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post RantCrush Top 5: August 3, 2017 appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/blogs/rantcrush/rantcrush-top-5-august-3-2017/feed/ 0 62549
Uber in Turmoil: How Several Scandals Led to the Departure of its CEO https://legacy.lawstreetmedia.com/issues/technology/uber-scandals-caused-ceo-kalanick-departure/ https://legacy.lawstreetmedia.com/issues/technology/uber-scandals-caused-ceo-kalanick-departure/#respond Mon, 10 Jul 2017 21:22:54 +0000 https://lawstreetmedia.com/?p=61790

What's next for the ride-sharing giant?

The post Uber in Turmoil: How Several Scandals Led to the Departure of its CEO appeared first on Law Street.

]]>
"Taxis" Courtesy of Rob Nguyen : Licence (CC BY-SA 2.0)

Since its recognizable logo first appeared on our phone screens in 2011, Uber has quickly risen to become ubiquitous in modern-day transportation, overtaking taxis in many cities. The ride-hailing company has cemented its status as a pillar of the sharing economy, while also battling countless lawsuits, protests, and government regulations over the years. The controversies reached a head in June 2017, when co-founder Travis Kalanick stepped down from his position as CEO. Read on for a glimpse into the events that led to Kalanick’s resignation.


Rise to Ride-Sharing Royalty

Uber’s growth as one of the world’s top ride-sharing companies was swift. It easily secured several rounds of funding, and became one of the most valuable startups worldwide. Uber has yet to go public, but is valued at $70 billion.

Uber’s impact on the market is cultural, as well as financial–the term “uberisation” has come to refer to other companies and industries that take after the company’s business model of eliminating the middleman and connecting customers directly to service providers. And, as The Economist writes, the word “uber” has become its own verb, like Facebook or Google.

Though competitors like Lyft have slowly built up steam, Uber still dominates the market. At the end of May, Uber’s U.S. market share was 77 percent, down from 84 percent earlier in the year. This decrease, experts say, is likely the effect of the seemingly endless controversies that have tainted Uber over its lifetime.


Early Disputes

Uber’s efforts to transform the transportation market have been met with resistance from the beginning. In a 2013 class-action lawsuit, a group of drivers sued Uber for its labor practices. The suit claims the drivers have been “misclassified as independent contractors and are entitled to be reimbursed for their expenses that Uber should have to pay, like for gas and vehicle maintenance.” The company agreed to settle the suit for $100 million in 2016, but a federal judge denied the settlement and the case is still ongoing.

In the U.S. and worldwide, Uber has faced major scrutiny for operating in markets without adhering to local policies and procedures that regulate cabs. In 2014, several protests against the company broke out across Europe. These protests came to a head in 2015, when taxi drivers locked down the city of Paris, blocking roads, burning tires, and attacking drivers. The drivers considered Uber to be a form of “economic terrorism.”

“London Anti-Uber Taxi Protest” Courtesy David Holt : License (CC BY 2.0)

Uber is currently banned in Italy, Hungary, Denmark, and several other nations, in addition to some U.S. cities. In August 2016, Uber sold its presence in China to competitor Didi Chuxing, freeing it up to expand in other global markets. Today, the company operates in over 80 countries.

Over the years, Uber has come under fire for funneling millions into opposition research, both in plots to push out Lyft, its primary U.S. competitor, and to fight negative press coverage by “digging up dirt” on journalists. While these scandals have tarnished Uber’s image, 2017 has been an especially turbulent year for the company.


2017: A Year of Controversy

Uber’s controversies seemed to pile up at the beginning of 2017. When President Donald Trump’s travel ban was announced in January, protesters gathered at airports nationwide. While the New York Taxi Workers’ Alliance ceased operations at JFK to participate in the protest, Uber continued picking up customers, fueling backlash from many who said the company was profiting from Islamophobia and deportation. The company later apologized, but not before the hashtag “#DeleteUber” began trending and rival company Lyft announced its support for the protesters, promising to donate $1 million to the American Civil Liberties Union.

Toxic Culture

In February, Uber engineer Susan Fowler published a blog post documenting several incidents of sexual harassment during her time with the company. The post went viral and prompted Kalanick to hire former U.S. Attorney General Eric Holder to investigate the claims. In June, Holder presented the board with a report of the findings and series of recommendations to improve Uber’s workplace. One of the recommendations was to strip Kalanick of some of his power. Also in June, Uber fired 20 employees after an investigation unrelated to Holder’s revealed more evidence of bullying, harassment, and a “toxic” company culture.

Skirting the Rules

A few days after Fowler’s viral post was published, Uber was hit with a lawsuit from Waymo, a self-driving car offshoot of Alphabet, Google’s parent company. Waymo alleged that Uber stole trade and patent secrets, focusing on actions by Anthony Levandowski, a former Google engineer. Levandowski was fired from Uber in May, and a new filing in June revealed that Kalanick knew Levandowksi had possession of data from Google long before the Waymo suit was filed.

In March, The New York Times reported on Uber’s use of a technology called Greyball, which it employed primarily outside of the U.S., allowing drivers to evade local authorities in markets where the ride-hailing service had been banned. The Department of Justice launched an investigation in response.

“Travis Kalanick” Courtesy of TechCrunch : Licence (CC BY 2.0)

Kalanick’s Tarnished Image

Kalanick, as an individual, faced even more scrutiny in late February after he was caught on video in a profanity-laden argument with an Uber driver over the company’s falling fares, which the driver said made him “bankrupt.” After the video surfaced online, Kalanick publicly apologized.

“To say that I am ashamed is an extreme understatement,” Kalanick wrote in a company-wide email. “I must fundamentally change as a leader and grow up. This is the first time I’ve been willing to admit that I need leadership help and I intend to get it.”

Several years ago, Kalanick also came under fire for referring to his company as “Boob-er” in an highly-scrutinized GQ interview, saying that his desirability among women has increased since starting Uber.


Kalanick Resigns

A week before officially resigning, Kalanick announced an indefinite leave of absence from Uber leadership. This was in response to Holder’s recommendation that the company re-evaluate some of Kalanick’s responsibilities or distribute them among other members of leadership. In a memo to employees, Kalanick also said the leave of absence would give him time to grieve for his mother, who was killed in a boating accident weeks earlier.

The temporary departure did not satisfy Uber’s investors, however. On June 20, two venture capitalists presented Kalanick with a list of demands, including his resignation. The letter was from five of Uber’s major investors, including Benchmark and the mutual fund giant Fidelity Investments. By the end of the day, his departure was made public.

Kalanick’s resignation isn’t the first indication of instability among the company’s top brass. Including the position of CEO, three of Uber’s eight leadership positions are currently vacant. Several other high-level positions and other leaders are also currently under scrutiny, and four out of seven board members, including the board’s only two women, are relatively new to the company.


What’s Next for Uber?

In spite of the recent controversies, Uber is continuing to expand and reshape its image. Uber added an in-app tipping function in June, much to the delight of drivers and customers, and the company’s self-driving projects are continuing to improve, even in the wake of the Waymo lawsuit. The company also streamlined its app to allow users to hail rides for others more easily, letting users call an Uber for a drunk friend or aging relative.

Unfortunately, the scandals haven’t stopped altogether. Less than 10 days after Kalanick’s resignation, civil rights activists filed suit against Uber in federal court for violating the Americans With Disabilities Act and the District of Columbia’s Human Rights Act by not accommodating passengers with non-collapsible wheelchairs.


Conclusion

Even with the departure of Kalanick, the rest of this year could be make or break for Uber. Kalanick still retains a seat on Uber’s board, as well as voting rights in company decisions. Some think he could be leaving the door open to return to the helm in the future. Murmurs of Uber going public are also ongoing. Uber’s market share decrease and 2016 earnings loss could still hold up an IPO, but economists and experts think Kalanick’s resignation is a good sign for the company’s public trading potential. All eyes will remain on Uber to see if the ride-sharing giant can continue to grow, while transforming its leadership and company culture.

Avery Anapol
Avery Anapol is a blogger and freelancer for Law Street Media. She holds a BA in journalism and mass communication from the George Washington University. When she’s not writing, Avery enjoys traveling, reading fiction, cooking, and waking up early. Contact Avery at Staff@LawStreetMedia.com.

The post Uber in Turmoil: How Several Scandals Led to the Departure of its CEO appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/issues/technology/uber-scandals-caused-ceo-kalanick-departure/feed/ 0 61790
Uber Now Requires Drivers to Snap Selfies to Make Your Trip Safer https://legacy.lawstreetmedia.com/blogs/technology-blog/uber-now-requires-drivers-snap-selfies-make-trip-safer/ https://legacy.lawstreetmedia.com/blogs/technology-blog/uber-now-requires-drivers-snap-selfies-make-trip-safer/#respond Sat, 24 Sep 2016 22:02:26 +0000 http://lawstreetmedia.com/?p=55734

What's the motivation behind Uber's new selfie policy?

The post Uber Now Requires Drivers to Snap Selfies to Make Your Trip Safer appeared first on Law Street.

]]>
"Uber app" courtesy of [freestocks.org via Flickr]

Uber will start requiring its drivers to periodically snap selfies before being able to accept new rides. The company described its new move as a security measure that will prevent fraud and protect drivers’ accounts. But critics say it is just a sign that some drivers have not gone through background checks.

The tech company has long resisted more secure safety measures such as the use of fingerprints when running background checks, which are outsourced to a company called Checkr. Criticism has come from the fact that the prospective driver only has to enter all his personal information online before applying and doesn’t meet anyone from the company in real life before starting to pick up rides.

The absence of fingerprint checking leads to drivers swapping accounts with each other, according to David Sutton from a campaign run by the Taxicab, Limousine and Paratransit Association. He said to the Verge:

This is Uber acknowledging drivers share their accounts and the company’s effort to reduce this practice. Despite intense criticism of Uber’s screening process, the company is admitting there are drivers who’ve never undergone any form of background check.

One driver admitted to this practice in 2014: if you don’t want to be screened before driving for Uber, you just put your information on another driver’s account who doesn’t want to work anymore and you’re all set.

Uber chief of security Joe Sullivan explained in a blog post how the new selfie method will work. Drivers first take a selfie in the Uber app.

We then use Microsoft’s Cognitive Services to instantly compare this photo to the one corresponding with the account on file. If the two photos don’t match, the account is temporarily blocked while we look into the situation.

This is what it looks like:

But it sounds a little risky to trust the technology that much. And what if the app doesn’t recognize a driver, even if it’s the same person in both pictures? Sullivan admitted in the blog post that there had been cases of mismatching during the pilot testing of the app service. But he said that more than 99 percent of photos were matched correctly, and the ones that weren’t were due to blurry profile pictures on the drivers’ pages. The post stated:

Given that verification takes only a few seconds to complete, this feature proactively and efficiently builds more security into the app.

Throughout the years Uber drivers have been involved in drunken driving, murder, kidnapping, killings of pedestrians, assault and sexual assault. Time will tell if the selfie security will do anything about these problems.

Emma Von Zeipel
Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

The post Uber Now Requires Drivers to Snap Selfies to Make Your Trip Safer appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/blogs/technology-blog/uber-now-requires-drivers-snap-selfies-make-trip-safer/feed/ 0 55734
Uber Will Have a Rough Ride in 2015 https://legacy.lawstreetmedia.com/news/uber-going-rough-ride-2015/ https://legacy.lawstreetmedia.com/news/uber-going-rough-ride-2015/#respond Thu, 08 Jan 2015 21:39:07 +0000 http://lawstreetmedia.wpengine.com/?p=31272

Uber is being hit with lawsuits from several directions in 2015, but it shows no signs of slowing down.

The post Uber Will Have a Rough Ride in 2015 appeared first on Law Street.

]]>
Image courtesy of [Joakim Formo via Flickr]

Uber is a great way to get from point A to point B, but the company may have a rocky road ahead of it in 2015. There are a lot of lawsuits pending against the ridesharing company, and while none of them seem that damaging, it does raise a question: why is Uber so prone to lawsuits?

One of the pending legal struggles against Uber involves its habit of sending incessant text messages to users. Uber has been named in a class action suit filed in U.S. District Court based in San Francisco. The suit argues that Uber has been abusing text-messaging marketing and bombarding people’s phones with unwanted messages. This is illegal ever since a change in FCC polices that interprets a law differently, namely that it:

Restricts telephone solicitations and the use of automated telephone equipment to include text messages sent to a mobile phone, unless the consumer previously gave consent to receive the message or the message is sent for emergency purposes. The ban applies even if consumers have not placed their mobile phone numbers on the national Do-Not-Call list.

Uber isn’t the only company to be on the receiving end of such a lawsuit–CVS, Jiffy Lube, Steve Madden, and Burger King have also been sued for doing the same or a similar thing. This class action lawsuit is asking for over $5 million in total for the text messages, although a judge will have to rule on whether or not to allow the legal proceedings to move forward as a class-action lawsuit.

That’s not the only time that Uber may see the inside of a courtroom this year. There’s currently an ongoing lawsuit about the tipping procedures used by the company. The lawsuit claims that Uber advertises that 20 percent of its fees go to tips for the drivers, but that it’s actually misleading its customers and keeping a substantial amount. This case, which also has the potential to become a class action suit, was originally filed by Caren Ehret of Illinois. She claims that because Uber’s policies are misleading, she, and other customers, ending up overpaying. This case has been stretching on for a while, as there has been some back and forth over whether or not the plaintiff can have access to certain of Uber CEO Travis Kalanick’s emails. It was just ruled that the plaintiff will be able to see those messages, and the case is continuing to move forward.

A third recent lawsuit against Uber involves the company’s “safe ride” fee that’s charged to its UberX customers. UberX is a ride sourced through Uber that uses the driver’s own car. This lawsuit argues that UberX is misleading its customers about what the “safe ride” fee does. According to Uber’s website, the safe ride fee is used to ensure that the drivers are up to industry standards, that they have the proper training, and that they pass background checks; however, this lawsuit, filed by one California and one Michigan resident, says that Uber’s safety features actually fall below industry standards.

These aren’t the only lawsuits with which Uber will have to contend in the coming months and years, and it’s not just in the courtroom that the company will see trouble. It’s also seen PR backlashes from controversies ranging from charging surge prices during the Sydney hostage crisis in late 2014, to sexual assault allegations in Chicago and New Delhi.

To be honest, I probably won’t stop using Uber, and I have a feeling most of my peers won’t either. It’s cheaper than cabs, and incredibly convenient. It’s a company that truly does have the ability to revolutionize transportation. But in order to get to that point, the truly revolutionary point I mean, it’s going to have to be careful. There are a lot of bumps in the road ahead for Uber–if it can weather them, it’ll be in good shape.

Anneliese Mahoney
Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Uber Will Have a Rough Ride in 2015 appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/news/uber-going-rough-ride-2015/feed/ 0 31272
Rideshare Infighting: Lyft Sues Uber Executive https://legacy.lawstreetmedia.com/news/ridesharing-infighting-lyft-sues-uber-executive/ https://legacy.lawstreetmedia.com/news/ridesharing-infighting-lyft-sues-uber-executive/#respond Fri, 07 Nov 2014 20:44:49 +0000 http://lawstreetmedia.wpengine.com/?p=28335

Ridesharing rivals Lyft and Uber are headed into the courtroom.

The post Rideshare Infighting: Lyft Sues Uber Executive appeared first on Law Street.

]]>
Image courtesy of [Via Tsuji via Flickr]

Uber and Lyft are the two big names in the modern transportation industry. Both services, heavily technologically based, provide dependable transportation and serve as a foil to a traditional taxi. So, naturally, there’s plenty of room for feuding there. Case in point: Lyft is suing former COO Travis VanderZanden, who is now with Uber. Lyft is arguing that VanderZanden breached the confidentiality agreement he signed with Lyft, as well as failed his fiduciary duties.

VanderZanden left Lyft in August after purportedly feuding with company founders John Zimmer and Logan Green. Soon after, he got a job with Uber, Lyft’s most obvious rival.

Lyft is accusing VanderZanden of a few different types of inappropriate conduct after he left the company. It is arguing that he attempted to solicit Lyft employees to leave with him, and it claims that he took a bunch of confidential documents with him when he left. There are traces of certain proprietary documents being copied to VanderZanden’s personal Dropbox–an online account used for large document storage. Lyft claims the confidential documents included:

Historic and future financial information, strategic planning materials like marketing plans and product plans, customer lists and data, international growth documents, and private personnel information.

Even if VanderZanden in no way conveyed this sort of information to his new employers, Lyft argues that he’s still breaking the confidentiality agreement that he signed when he began working with them. The possession of the documents in a personal account alone breaches the document he signed. Uber claims that it doesn’t have any of Lyft’s proprietary information, but who’s to know if that’s true.

The ongoing feud between the two companies is certainly interesting though, as they have very similar roots. Lyft was founded in San Francisco in 2012; Uber was founded in San Francisco just three years before. Having used both services in Washington, D.C. multiple times, there are very few noticeable differences in terms of user experience, except for maybe the fact that Lyft drivers adorn their cars with bright pink mustaches, whereas Uber drivers go for significantly more subtle window stickers.

Despite the obvious similarities, Uber is pretty much trouncing Lyft in the market. Fortune discovered that in the last year, riders spent $26.4 million on Uber rides, in comparison to only $2.2 million reported by Lyft. Part of that could very well be because Lyft is a younger company, and while they’re growing quickly they’re certainly still behind Uber in the grand scheme of things. Uber is a global company, whereas Lyft is still working on expanding.

Given that the two companies really are fighting for the same market–smartphone wielding people who don’t want to have to bother with hailing a cab or fumbling with cash to pay for said cab–Lyft and Uber have every reason to compete. Like Apple and Samsung, on a much smaller scale, I think we can expect to see lawsuits, court cases, and allegations thrown around between the two companies for a while to come.

Anneliese Mahoney
Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Rideshare Infighting: Lyft Sues Uber Executive appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/news/ridesharing-infighting-lyft-sues-uber-executive/feed/ 0 28335
Uber: Not Your Typical Taxi https://legacy.lawstreetmedia.com/issues/business-and-economics/uber-typical-taxi/ https://legacy.lawstreetmedia.com/issues/business-and-economics/uber-typical-taxi/#comments Fri, 01 Aug 2014 10:32:51 +0000 http://lawstreetmedia.wpengine.com/?p=21562

Uber is revolutionizing the personal transportation industry, but it isn't without its critics. Find out everything you need to know about Uber here.

The post Uber: Not Your Typical Taxi appeared first on Law Street.

]]>
Image courtesy of [joiseyshowaa via Flickr]

The days of hailing down a cab may become a distant memory for those with a smart phone in their hand. Uber has reinvented the ridesharing industry with its user-friendly application. Created in San Francisco in 2009, Uber now connects customers with available drivers in cities all around the world.

Although generally loved by customers, Uber has faced many obstacles since its launch, including competition and government intervention. It has been criticized for disregarding regulations and carrying poor or no insurance on its drivers. Read on for an examination of the policy and incidents that have shaped Uber into the company it is today.

Uber

Click the image for more detailed information.


What is Uber?

Quick and inexpensive transportation can be challenging to find when you live in a city. That’s where Uber comes in. When a customer opens up the application, she is greeted with a map displaying the cars for hire in the vicinity and the estimated wait time for pick up. Uber is especially attractive because the same quality of service transitions from day to night. Business people can order a car on the way to a meeting just as easily as someone can use it as a designated driver after a night out.

The process of ordering a car is incredibly simple:

  • Download the app and enter your payment information
  • Set pickup location
  • Choose the type of car you want to ride in
  • Tap request and track the reserved car’s location

The services provided by Uber are vast. Originally the company offered black cars (UberBLACK), which are luxury vehicles including Escalade SUVs, Lincoln Town Cars, and Mercedes. Now with the implementation of the low-cost option, UberX, the company is able to attract a wider breadth of the market.

UberX drivers use their own cars, carry insurance and a valid driver’s license, and pass a background and DMV check. UberBlack drivers must also have the commercial licenses required by the city in which they operate.


Does Uber Have a Competitor? Possibly.

Uber shares many similarities with the ridesharing company Lyft. Founded in San Francisco, Lyft operates in 60 cities in 2014. While Uber and Lyft provide almost identical services, Lyft has been met with great opposition in New York City. Under the Taxi and Limousine Commission (TLC), Manhattan has stringent taxi regulations by which Uber abided. Lyft has not yielded to city and state regulations such as ensuring that all drivers are commercially licensed and that their vehicles are registered with the TLC. The attorney general’s office has filed suit and accused Lyft of eight violations, including using vehicles that are not registered with the TLC and hiring drivers who have not obtained the correct insurance and licensing.

In an interview with Buzzfeed, New York State Attorney General Eric Schneiderman declared in reference to Lyft evading the regulation:

“They’re allowed to try and we’re allowed to stop them.”

Lyft had planned on launching its peer-to-peer model, but because of the state’s officials and the TLC it postponed the launch. The company has agreed to work with the TLC to ensure that its cars and drivers are fully licensed.


Regulations

Are Drivers Insured?

The legality of Uber differs from city to city as each jurisdiction has different regulations pertaining to public transportation services. While taxi drivers have been subjected to these guidelines for years, Uber has been accused of bypassing many rules that govern taxi services.  Insurance of the Uber drivers has been a source of concern from legislators and the general public. To clear up any ambiguity, Uber announced that “all ridesharing transportation partners are covered by best-in-class commercial insurance coverage in the event of an accident.”

The insurance policies for UberX are:

        • $1 million of liability coverage per incident
        • $1 million of uninsured/underinsured motorist bodily injury coverage per incident
        • $50,000 of contingent comprehensive and collision insurance
        • No fault coverage in certain states
        • $50,000/$100,000/$25,000 of contingent coverage between trips

The other Uber services (UberSUV, UberBLACK, and uberTAXI) are “provided by commercially licensed and insured partners and drivers.”

Price Caps

One of the best cases made by Uber opponents is the company’s history of hiking up prices during times of high demand — a practice that sets apart Uber from traditional taxis. While taxis have a fixed fare, the price of Uber depends on the demand. Schneiderman criticized Uber for “charging as much as eight times its base rate during storms.” To avoid this manipulation, Uber and the Attorney General reached an agreement that during emergencies there will be a limit to peak pricing in New York. This agreement was the beginning of Uber’s new policy of limiting surge pricing nationwide during emergencies. In addition to limiting price increases, when an emergency causes a fare to be elevated the company plans on donating 20 percent of profits to the American Red Cross.


Negative Responses

Death of a Child

Tragedy struck a San Francisco family when a six-year-old girl was killed after being hit by an Uber driver. At the time of the accident the driver did not have a passenger in his car nor was he on the way to pick someone up, which is why Uber claims it should not be held accountable. The parents of the deceased have brought wrongful death suits against both Uber and the driver.

Alleged Abduction

After becoming intoxicated while partying at nightclubs in Los Angeles, a woman was put into an Uber by a valet. Instead of driving the woman home, the Uber driver allegedly kidnapped her and brought her to a hotel with the intent to sexually assault her. When the woman awoke, she found the driver shirtless lying next to her in bed and immediately left to call the police. Uber spokesperson Lane Kasselman stated after learning of the event that “the facts are unknown at this stage and it’s certainly unclear that this is an Uber-related incident, as the driver in question was not logged in, connected to or operating on the platform at the time… Nothing is more important to Uber than the safety of our riders.”   Even if Uber is not accountable for this crime, the incident tarnishes the brand.

Protests in Europe

America is not the only place where Uber is meeting resistance. Protests against the ridesharing company have gone across the Atlantic to European nations. In London, more than 10,000 cabdrivers participated in an hour-long protest. London has especially stringent regulations on its cab drivers. The process to get a license is rigorous and quite demanding: cab drivers must have knowledge of the London streets and be able take alternative routes without consulting a map. Because they have this extensive knowledge, they have an intimate understanding of the city and are regarded as experts.

When Uber arrived in London with drivers who bypassed the intense training that London-based drivers are subjected to, it should almost be expected that cab drivers would halt their services in protest. Mario Dalmedo, a cab driver in London, said:

“There’s room for everyone, but you have to obey the law.”

In addition to losing their jobs, drivers are concerned about how Uber is not following the rules and fails to pay the same level of taxes.

Uber maintains that it is providing competition in a market that has not been introduced to new services in a long time.

Virginia: Cease and Desist

In early 2014 the state of Virginia levied more than $35,000 in fines against Uber and Lyft for not having the proper permits in Northern Virginia. Following those charges, Richard D. Holcomb, commissioner of the Virginia Department of Motor Vehicles, sent Uber and Lyft cease and desist letters. Uber and Lyft have applied for brokers’ licenses to operate in Virginia since receiving the letter. Also, both companies have applied for temporary authority that would allow them to continue operations until they receive licenses.

Kaitlin Durkosh, Uber spokeswoman, stated that the company has been working “in good faith with the DMV to create a regulatory framework for ridesharing.”


Conclusion

Since its inception, Uber has been faced with many regulatory challenges; however, its accessibility and innovation has transformed the startup into a legitimate threat to the taxicab industry. With strong customer loyalty and growing financial backing, Uber appears to be sticking around for the long haul.


Resources

Primary

Uber: Eliminating Ridesharing Insurance Ambiguity

Uber: Insurance For UberX With Ridesharing

Additional

Forbes: Lyft Pips Uber by Launching 24 Cities in One Day

Slate: Why Uber and Lyft Are Not Interchangeable Services in New York

BuzzFeed: New York Attorney General, Aide Slam Lyft Co-Founder

The New York Times: Uber Reaches Deal With New York on Surge Pricing in Emergencies

Bloomberg: Uber Faces Challenges in NY With Lyft Debut, Price Caps

Washington Post: Competition from UberX, Lyft has D.C. Taxis Crying Foul

Lyft: Lyft New York Update

Business Insider: Virginia Commonwealth DMV Orders Uber and Lyft to Cease and Desist

Washington Post: Uber and Lyft Working on Becoming Legal in Virginia

NBC: Uber Driver Arrested on Kidnap With Sexual Intent Charge

The New York Times: Traffic Snarls in Europe as Taxi Drivers Protest Against Uber

Avatar
Alex Hill studied at Virginia Tech majoring in English and Political Science. A native of the Washington, D.C. area, she blames her incessant need to debate and write about politics on her proximity to the nation’s capital.

The post Uber: Not Your Typical Taxi appeared first on Law Street.

]]>
https://legacy.lawstreetmedia.com/issues/business-and-economics/uber-typical-taxi/feed/ 2 21562