Almost 14,000 drivers have opted out of the class-action lawsuit against Uber, a ride-sharing company. The lawsuit argues that Uber should have been more transparent about its insurance coverage and made drastic changes in the way it screens and monitors drivers. This lawsuit has also been dubbed “O’Connor v. Uber.” To learn more, read our article: What is a class-action lawsuit against Uber? And who should participate?
O’Connor v. Uber was a class action lawsuit against uber
A U.S. District Court in California recently decided that a putative class action lawsuit against Uber was not admissible due to a lack of commonality between the parties. In the O’Connor case, plaintiffs claimed that Uber misclassified their drivers as independent contractors instead of employees. In addition, they claimed that the company failed to properly compensate drivers for their business expenses, including mileage reimbursements. The plaintiffs also sought a court order declaring that the arbitration agreements in place in 2013 were unconscionable. They also sought enhanced notice and the opportunity to opt-out of arbitration. The company responded by updating its licensing agreements.
The case is ongoing and dozens of appeals have been filed, but the court has yet to rule on the merits of the suit. In addition to O’Connor v. Uber, four other similar cases have been filed against Uber Technologies, Inc. in the same district. These include Mohamed v. Uber, 3:14-cv-05200-EMC, Del Rio v. Uber, and O’Connor v. Uber.
Almost 14,000 drivers have opted out of a class-action lawsuit against uber
Almost 14,000 Uber drivers have opted to opt out of a class-action lawsuit against the ride-hailing giant. A lawsuit filed in August claimed Uber misclassified drivers under the state’s ABC test. That test was introduced as part of Assembly Bill 5, which was repealed by Proposition 22. This decision was controversial because drivers who were misclassified could receive up to $20 million.
The settlement is good news for drivers, as it removes one hurdle for organizing and filing suits against the company. But it’s not an end to lawsuits. Uber has yet to settle the lawsuit in other states. Even if the settlement was favorable to drivers, it doesn’t mean they won’t sue. As a result, it’s not clear whether the lawsuits will reach the courts.
Uber should have disclosed the truth about its insurance coverage during rides
The lawsuit filed by a Massachusetts woman against Uber raises questions about the company’s claims to protect passengers in remote locations. Uber claims to carry $1 million in commercial insurance, but this policy only applies to rides, not drivers waiting for passengers. The company’s insurance policies are incomplete and often hard to cash in on. This case highlights the importance of transparency and accountability for any tech company that wants to make money.
When launching Uber’s insurance plan in 2009, the company acknowledged that it was underinsured and was pushing its drivers to take out insurance. Despite this, Uber emphasized that drivers would pay only 3.75 cents per mile to get coverage. However, it is not clear what this cost would be for drivers, who could then decide whether or not to purchase it. In Alaska, this would be a misdemeanor.
Uber should have made drastic changes to screen and monitor drivers
A recent lawsuit alleges that Uber failed to adequately screen drivers and that its inadequate background checks allow bad actors to gain access to its system. Further, Uber has a particular interest in targeting riders who are intoxicated, despite its claim to be a lifesaver for intoxicated riders. In addition, Uber has not adequately monitored drivers once they’ve been hired, allowing them to engage in inappropriate behavior. The company has also failed to address the safety of women riding in its vehicles, despite several complaints.
In an attempt to combat these issues, Uber has tightened its screening process, adding features to its app that require drivers to take selfies with masks and provide limited cleaning supplies. This is a huge step forward for Uber, but it still needs to do more to monitor drivers and prevent further problems. Despite its shortcomings, the scandal will likely affect Uber’s brand image in the long run. Further, the company’s lack of internal controls may expose it to increased scrutiny from local lawmakers, and it could be even worse if it didn’t have any measures in place.