Summary: Uber has been hit with a record 50 federal lawsuits last year. But what’s the reason for all the lawsuits?
Why does it seem like everyone is suing Uber? Fusion reports that last year the transportation giant was hit with 50 federal lawsuits. They say that’s a lot compared to its tech peers such as Lyft and Airbnb, which were sued less than a third as often and five times, respectively.
Uber operates in 68 countries and employs more than 5,000 people. Bloomberg reports that it is evaluated at $62.5 billion and that it’s more valuable than carmaker, GM.
But it’s not just its money that opens Uber to lawsuits. It seems to be everything. Fusion reports:
“Of the 50 or so lawsuits currently pending against Uber in federal court right now, 17 were filed by Uber drivers, 15 by taxi and livery companies, and more than a dozen by customers alleging all manners of sin, including assault, illegal robocalling and deceptive pricing. There’s also suits for trademark infringement, rejected insurance claims and disability discrimination, not to mention more lawsuits than were readily accessible in state and county courts.”
But delving more into the reasons behind the lawsuit, Fusion concludes that Uber’s shakeup of the established and highly regulated taxi industry has opened itself up to problems. While other apps can beta test and work on kinks later, Uber has actual cars on the road, safety issues, and loads of people to manage. Because their model works in the physical world, they’re going to get sued.
The biggest suit Uber is facing right now is a class action that accuses the company of misclassifying 160,000 employees as independent contractors. The suit, led by Shannon Liss-Riordan, is slated to go to trial later this year in San Francisco. If the class action wins, it would fundamentally change Uber’s business model and affect its profits by 30%.
Fusion reports that Uber appears to be building a legal army. It has 27 job openings for attorneys, and there are more than 50 people on LinkedIn who state they are in-house counsel at the company. Uber declined to verify its numbers.
Source: Fusion
Photo courtesy of the Uber Facebook page