OverexUBERant Lawsuits

Driving towards a settlement

2015 was quite a year for Uber, Silicon Valley’s hottest Gig Economy start up, where a ride is just a click away.  While Uber Inc. has reached an all time high in sales generated, they also lead another stat: Most frequently sued.  In fact, Uber has 50 lawsuits filed in U.S. Federal Courts in 2015 alone, 34 more than Lyft, a similar On Demand car service.

The largest chunk of those Federal lawsuits were filed under an employment statute in 12 different states under accordance that the drivers should in fact be considered employees, not independent contractors.  If even 1 of the statute emails are passed, it will completely change the makeup of Uber’s business model, with insurance, benefits and backed wages being necessary for their 160,000 plus drivers in 68 countries.

The other leg of the 2015 lawsuits against Uber came from Taxi and Livery Cab Services around the country.  The Gothamist recently published an article where New York City Taxi Services has seen 40% of their profits “carjacked” by Uber in the last 18 months alone.  The real issue for the NYC Taxi service is that they cannot compete. Uber is offering a premier service, nicer accommodations, on demand, for a cheaper price.  In addition, they are not restricting their pick-up or drop-off locals, adding another benefit of using the Gig Transport Service. 2016 will serve as a more transparent view towards the future of the Click-N- Go transportation industry.  Uber currently has over 50 lawyers on full-time retainer, with another 27 openings posted on LinkedIn alone.  With Uber currently collecting more Lawyers than vehicles, a legal storm is most certainly brewing; and Uber is planning to put up a fight.