Agreeing to the company’s terms of service means you lose the right to sue. Uber claimed the other day in U.S. district court that users of the ride-hailing app lose the right to sue the company. Customers must enter arbitration with Uber.
This issue is just the latest for the ride-hailing company.
As we reported previously, localities banned both this company and Lyft outside the New York City area. Alaska and New York remain the only places without statewide ride-hailing regulations. But pundits expect New York to make a decision in a few weeks about ride-hailing in the state.
Yet, bad news may stymie that effort by the company. “The headlines about Uber are indicative of a company that does not understand its responsibility,” said Assemblyman Kevin Cahill, a Democrat and the sponsor of the Assembly bill, which he said is fair to the company while ensuring protections for riders.
“Uber has a lot of answering to do. And we need to be certain that we’re writing legislation for an industry and not one company.” Other controversies rattled the ride share company. Uber CEO Travis Kalanick argued with an Uber driver over fares. Bloomberg published a video of the exchange. The CEO prefers to take a black car, the high-end service for the platform. In the video, he has an awkward chat with his two female companions.
That is, until one of them asked about Uber’s recent misfortune. That is when CEO Travis Kalanick argued with the Uber driver, Fawzi Kamel. Kamel debated with the CEO over fares. Kamel turned over the recording to Bloomberg. He wants to show the public an Uber driver’s struggle. The video shows off an angry side of the well-known executive as Uber CEO Travis Kalanick argued.
They refused to comment on the video. The company faced other troubles recently, too. A judge in Brazil determined that a driver is an employee of the U.S. company. Therefore, the employee should receive workers’ benefits. Uber will appeal the decision by Judge Marcio Toledo Goncalves. The judge required Uber to pay a driver about $10,000 in compensation for overtime, night shifts and expenses.
Uber Problems Spread to Brazil
The court case could spiral out of control in Brazil. Reuters found attacks on drivers increased by ten times. The increase happened after Uber allowed cash payments. Per Engadget, six drivers died since July 2016 when the option became available. Now the company requires Brazil’s cash users to provide a SSN. Riders opened fake accounts and requested rides to rough areas with little consequence.
For example, a teenage couple killed a driver, stole his vehicle and left him to die on street. Officials charged them with murder. The Brazilian branch ignored the danger. An internal study showed cash payments did not endanger drivers. But drivers and police thought differently. Brazil’s violent crime hovers at more than 10 times that of India. Furthermore, business increased by 15 times after the cash payments were accepted in Brazil.
Source: The Drive