UBER FACTS
YOU SHOULD KNOW
6 Questions to Ask
Before Stepping into
an Uber Vehicle
Is Uber Illegal?
1. Uber is illegal in at least 13 states and has chosen to continue operating in many cities and countries illegally.i
2. Uber performs the illegal act of price gouging, aka “surge pricing,” charging up to 8 times the normal rate during emergencies, special occasions and peak hours. Unlike the taxi and livery industry, their rates are not capped.ii
Is Uber Safe?
3. No FBI background check required - The taxi and livery industry requires all potential drivers and chauffeurs to undergo extensive
background check, inclusive of police and FBI databases. Uber does not, although most applicants are screened using an internet-based third-party service.iii
4. NBC conducted an investigation and found several drivers who were approved with felonies.iv
“NBC5 then ran background checks on each of the drivers and discovered ticket after ticket — for speeding, illegal stops and running lights. One driver had 26 traffic tickets, yet still passed Uber's background check. Uber says that it does not hire anyone with “’severe driving violation’ or
9. Uber doesn’t meet prospective drivers for trainingbefore allowing them to drive for Uber.x
10.Uber drivers are not required to maintain discretion; they have access to your registered name and pick-up/ drop-off GPS locations.
What Does Uber’s Insurance Cover? Seriously…
11.29 States have issued warnings about Uber’s insurance xi
12.If you pay cash for a trip, you will not be covered by insurance - Cash trips are not registered in the Uber app and will be uncovered by
insurance.
13.Uber’s insurance coverage is less than taxi & livery. xii
14.Uber insurance is still a major liability for passengers.
After other parties’ insurance companies have paid, Uber only covers
$50K per person and $100K for bodily injuries if the app is on. If on a trip, the $1 Million of liability insurance per incident steps in if the driver does not have commercial insurance or the claim is denied by
personal insurance.xiii Uber’s policy provides the highest state minimums
for collision coverage. xiv
15.Uber’s commercial insurance policy only covers medical coverage for the passengers and third parties, not the driver. Uber carries $1 Million in liability insurance, but this only covers riders, pedestrians and damage to other vehicles. Uber’s policy is only used if the Uber driver is at fault and covers neither damage to the driver’s car nor bodily
injury.xvi
16.Personal auto insurance does not allow policy holders to drive commercially.xvii xviii Insurance companies have announced that they will cancel Uber drivers’ policies that do not have supplemental
commercial coverage.Many Uber drivers are unaware of this major
How Experienced Are the Drivers?
17.There is no regulated driver licensing. Taxi and livery drivers are trained and verified. Uber only requires a 4-hour online training for drivers to be certified.xx
18.UberX drivers are not trained commercial drivers.
19.Many are unfamiliar with the city’s geographical landscape and best routes.
NBC5’s undercover investigation found that not a single UberX driver knew how to find historic Chicago landmarks and how to get around the city.xxi
20.Drivers are not incentivized to get you to your destination quickly and efficiently. Running late for your appointment or date? Don’t necessarily depend on your Uber driver to get you there faster. He gets paid the same regardless. They are paid by the minute/ GPS tracking and may not have recurring customers. “If the Uber car is travelling at a speed greater than 11 mph (18 km/h), the price is calculated on a distance basis. Otherwise, the price is calculated on a time basis.”xxii
How Does Uber Ignore Drivers’ Rights?
21.Uber claims it is a technology company, not a transportation
company, and says that it does not consider its drivers to be employees, but rather considers them “partners,” “independent contractors” or “licensees of software.” Uber has positioned itself as the middleman between customer and freelancer, which results in minimal liability for Uber and excessive liability for the Uber driver.
22.Uber avoids giving workers’ rights to drivers.
According to Shannon Liss-Riordan, a labor, employment and class-action specialist, Uber is using old-school methods by avoiding employee
classification to keep workers from having their rights under the law. xxiii
By classifying drivers as contractors, Uber can shift expenses to workers, avoid expenses like workers’ comp, medical coverage, overtime,
convictions in the last 7 years for violent crimes, felonies, sexual offenses, drugs or DUIs "I have a three-page rap sheet," said California reformed criminal Beverly Locke, who agreed to help NBC test the system. She was hired with priors for burglary, drugs and assault and is still on probation.”v 5. Uber denies any liability for drivers who have physically harmed
passengers Like this male passenger who was repeatedly bashed in the
face with a hammer by an Uber driver.vi
6. Uber offers no guarantees. Simply by downloading the app, passengers must agree to hold “ridesharing” companies harmless for anything that happens on the trip.
From Uber’s Terms & Conditions:
“The company…does not intend to provide transportation services or
act in any way as a transportation carrier, and has no responsibility or
liability for any transportation services provided to you…”
“…you agree that you shall defend, indemnify and hold the Company, its licensors and each such party’s parent organizations, subsidiaries,
affiliates, officers, directors, Users, employees, attorneys and agents
harmless from and against any and all claims, costs, damages, losses,
liabilities and expenses”
“You acknowledge and agree that you and Company are each waiving
the right to a trial by jury or to participate as a plaintiff…in any purported class action or representative proceeding.”
“You may be exposed to transportation that is potentially dangerous,
offensive, harmful to minors, unsafe or otherwise objectionable,
and…you use the application and the service at your own risk.” vii
7. Uber drivers have killed pedestrians; Uber denied liability.
An Uber driver hit and killed 6-year-old Sofia Liu in San Francisco on New Year’s Eve. Although the driver’s insurance provided some medical
coverage, Uber refused to provide supplemental insurance protection because there wasn’t a passenger during the accident, despite the fact that the driver was looking at the open Uber app.viii
What Does Uber’s Insurance Cover? Seriously…
11.29 States have issued warnings about Uber’s insurance xi
12.If you pay cash for a trip, you will not be covered by insurance - Cash trips are not registered in the Uber app and will be uncovered by
insurance.
13.Uber’s insurance coverage is less than taxi & livery. xii
14.Uber insurance is still a major liability for passengers.
After other parties’ insurance companies have paid, Uber only covers
$50K per person and $100K for bodily injuries if the app is on. If on a trip, the $1 Million of liability insurance per incident steps in if the driver does not have commercial insurance or the claim is denied by
personal insurance.xiii Uber’s policy provides the highest state minimums
for collision coverage. xiv
15.Uber’s commercial insurance policy only covers medical coverage for the passengers and third parties, not the driver. Uber carries $1 Million in liability insurance, but this only covers riders, pedestrians and damage to other vehicles. Uber’s policy is only used if the Uber driver is at fault and covers neither damage to the driver’s car nor bodily
injury.xvi
16.Personal auto insurance does not allow policy holders to drive commercially.xvii xviii Insurance companies have announced that they will cancel Uber drivers’ policies that do not have supplemental
commercial coverage.Many Uber drivers are unaware of this major
How Experienced Are the Drivers?
17.There is no regulated driver licensing. Taxi and livery drivers are trained and verified. Uber only requires a 4-hour online training for drivers to be certified.xx
18.UberX drivers are not trained commercial drivers.
19.Many are unfamiliar with the city’s geographical landscape and best routes.
NBC5’s undercover investigation found that not a single UberX driver knew how to find historic Chicago landmarks and how to get around the city.xxi
20.Drivers are not incentivized to get you to your destination quickly and efficiently. Running late for your appointment or date? Don’t necessarily depend on your Uber driver to get you there faster. He gets paid the same regardless. They are paid by the minute/ GPS tracking and may not have recurring customers. “If the Uber car is travelling at a speed greater than 11 mph (18 km/h), the price is calculated on a distance basis. Otherwise, the price is calculated on a time basis.”xxii
How Does Uber Ignore Drivers’ Rights?
21.Uber claims it is a technology company, not a transportation
company, and says that it does not consider its drivers to be employees, but rather considers them “partners,” “independent contractors” or “licensees of software.” Uber has positioned itself as the middleman between customer and freelancer, which results in minimal liability for Uber and excessive liability for the Uber driver.
22.Uber avoids giving workers’ rights to drivers.
According to Shannon Liss-Riordan, a labor, employment and class-action specialist, Uber is using old-school methods by avoiding employee
classification to keep workers from having their rights under the law. xxiii
By classifying drivers as contractors, Uber can shift expenses to workers, avoid expenses like workers’ comp, medical coverage, overtime,
Will Uber Discriminate Against You?
23.Based on your secret passenger rating on the Uber app, drivers can choose not to pick you up. These secret codes can lead to racial profiling and discrimination, e.g. skin color, bad tippers and elderly needing assistance, etc. xxv
24.Uber discriminates against handicapped individuals. Uber does not have any wheelchair-accessible vehicles in the U.S. and refuses to let seeing eye dogs ride, which is in violation of the Americans with Disabilities Act (ADA). xxvi
Citation
i http://www.businessinsider.com/letter-to-eric-holder-about-uber-2014-5 ii http://bits.blogs.nytimes.com/2012/01/08/disruptions-taxi-supply-and-demand-priced-by-the-mile/?_php=true&_type=blogs&_r=0 iii http://www.whosdrivingyou.org/uploads/2/5/1/4/25145532/_uber-speeds-away-from-responsibility-press-release.pdf iv http://pando.com/2014/01/06/exclusive-uber-driver-accused-of-assault-passed-zero-tolerance-background-check-despite-criminal-history/ v http://www.nbcchicago.com/investigations/Ride-Service-May-Pose-Risk-to-Passengers-256639641.html vi http://www.forbes.com/sites/ellenhuet/2014/09/30/uber-driver-hammer-attack-liability/2/ vii http://www.whosdrivingyou.org/uploads/2/5/1/4/25145532/terms-and-conditions.pdf viii http://www.businessweek.com/articles/2014-06-26/is-california-about-to-disrupt-uber ix http://www.fastcompany.com/3032165/most-innovative-companies/why-the-insurance-industry-is-taking-aim-at-uber-and-lyft x http://www.forbes.com/sites/ellenhuet/2014/09/30/uber-driver-hammer-attack-liability/2/ xihttp://www.whosdrivingyou.org/insurance-warnings.html xii http://council.seattle.gov/2014/07/14/explaining-my-no-vote-on-the-new-taxi-for-hire-and-tnc-regs/ xiii http://www.nbcbayarea.com/on-air/as-seen-on/Is-Uber-Keeping-Riders-Safe__Bay-Area-256651231.html xiv http://www.sfgate.com/business/article/Uber-Lyft-draw-mixed-reactions-on-insurance-5319155.phpxv Uber’s blog
xvi http://blog.esurance.com/are-you-sure-you-want-to-be-an-uberx-driver xvii http://www.nbcbayarea.com/on-air/as-seen-on/Is-Uber-Keeping-Riders-Safe__Bay-Area-256651231.html xviii http://ridesharedashboard.com/2014/11/05/uber-lyft-drivers-medical-coverage-accident/ xix http://www.whosdrivingyou.org/insurance-breakdown.html xx http://council.seattle.gov/2014/07/14/explaining-my-no-vote-on-the-new-taxi-for-hire-and-tnc-regs/ xxi http://www.nbcchicago.com/investigations/Ride-Service-May-Pose-Risk-to-Passengers-256639641.html xxii http://vator.tv/news/2011-12-07-uber-pulls-in-another-32m-for-app-based-car-service xxiii http://www.bostonglobe.com/business/2014/06/26/uber-hit-with-class-action-lawsuit/JFlTJLMuBoXuEmMU3elTAI/story.html?s_campaign=8315
xxiv NLA Statement PDF
xxvhttp://www.businessinsider.com/letter-to-eric-holder-about-uber-2014-5 xxvi http://www.businessinsider.com/letter-to-eric-holder-about-uber-2014-5
