Uber Now Facing Lawsuits From Cab Companies

Picture of taxis, Flikr.com,

There’s a new service in town.

Uber exploded into the transportation scene trying to change the way people travel. There idea is a great idea allow you to use your personal car as a way to transport people where they need to go, whether that be to a hotel or to the airport. You control everything through  the Uber app. So if you want to make some extra cash, you could become an Uber driver. Uber classifies their drivers as “independent contractors” instead of employees and Uber drivers feel they should be employees, and not independent contractors. You can read more about this matter at the Huffington Post.

Now, Uber faces an entire new lawsuit. According to the Huffington Post, a federal judge ruled that California taxi cab services can now sue Uber for making the claim that they offer  “the safest ride on the road”. According to the ruling, Uber declared that conventional taxis were less safe. District Court Judge Jon Tigar dismissed Uber’s attempt to dismiss the entire lawsuit and said much of it could proceed.

Uber went from a small startup to having an $18 billion valuation, according to the New York Times. The Times also states that Uber is responsible for creating 20,000 jobs every single month. The beauty about Uber, from a business standpoint, is that they have no employees as an Uber drive is considered an independent contractor. That is an entirely separate issue Uber is facing but one thing I learned early on in business is that you want to own nothing, but control everything.

Comments are closed.