Uber’s Legal Exposure

Background

Uber is a company that offers affordable and convenient cab services. There are many entrepreneurs who have decided to invest in the company as a part time job. There are, however, situations that would lead to Uber facing legal charges due the drivers’ action or inaction (Vara, 2014). The paper addresses certain situations that would lead to legal charges against Uber. There are also recommendations given on how to help minimize the possibility of facing legal chargers as a result of drivers’ behavior.

Uber faces an issue of vicarious liability for the actions of its drivers that may lead to legal charges after engaging in certain acts. This may make Uber face charges for the tortious acts of its drivers. One such case was the Search V Uber Tech Inc. 2015, where Uber was charged for an incident where its driver was involved in serious altercation with a passenger. This was after the driver picked up friends during the trip for the client resulting to a verbal dispute with the client that then escalated to physical altercation where the driver stabbed the client. The charges were pressed against Uber for the acts of its driver (Erik Search V. Uber Technologies, Inc, 2015).

A ruling in the UK termed Uber drivers as workers which grants them workers’ rights such as rest breaks, holiday pay, and minimum national wage. The level of control the company has over its drivers justifies the classification of the Uber drivers being employees. This introduces a concept of agency where the drivers will be deemed to act on behalf of the company there exposing Uber to legal liability for acts committed by its drivers (Miller, 2017).

Recommendations

To help reduce these issues occurring, certain measures can be taken. One thing is intensive interviews and training for the drivers. It reduces chances of hiring an incompetent drivers and criminals. Another thing is that warnings can be issued to the drivers when involved in wrong actions. Also, when a complaint is made by a client that requires compensation, the concerned driver should take care of the compensation costs. In extreme cases, an organization can sue a driver for his actions. It serves as a warning to others on the seriousness of legal concerns. It reduces chances of other participating in similar or worse situations. The company should also reconsider the level of control they have over their drivers as a way of reducing their legal liability (Egelko, 2016).

References

Egelko, B. (2016). Uber may be Liable for Accidents, even if drivers are contractors. Retrieved from http://www.sfchronicle.com/bayarea/article/Uber-may-be-liable-for-accidents-even-if-drivers-7377364.php

Erik Search V. Uber Technologies, Inc, Civil Action No. 15-257 (United States District for the District of Colubia 2015).

Miller, D. (2017). Liability Issues Impact Uber Business Model. Retrieved from https://www.withersworldwide.com/en-gb/liability-issues-impact-uber-business-model

Vara, V. (2014). Uber, Lyft, and Liability. Retrieved from https://www.newyorker.com/business/currency/uber-lyft-liability