Uber, the transportation company looking to conquer a whole lot more than cars with its on-demand services, seems like itâs on top of the world. With a recent round of $1.2 billion in investment and a ballooning $40 billion valuation making it one of the most successful private technology companies around, there seems to be no stopping its progress in the eyes of Silicon Valley.
But for the customers who use it, the downsides of Uberâs business model are becoming more apparent. Beyond the managementâs recent manipulation of media, the looming problem is that the temporary employees Uber hires as drivers arenât as dependable as the company presents them to be, nor are they properly screened. Uber is growing so fast that safe hiring procedures canât keep up with demandâso any and all potential drivers are recruited, even the creeps. In cities across the world, drivers have sexually harassed and even raped victims, as well as hit and killed children.
The crimes are egregious and indisputable. But the question remains, is Uber directly responsible for them? Its terms of service warns riders, âYou expressly waive and release the company from any and all any liability⌠arising from or in any way related to the third party transportation provider.â That caveat hasnât stopped victims from issuing lawsuits and entire countries banning the app entirely; however, the argument that the business has no connection with its employeesâ abuses appears patently disingenuous.
As it continues to grow, Uberâs biggest flaw might not be its product, but itself. Here are the places where the company is fighting its toughest challenges to its services as well as its reputation.
Portland
On December 9, a lawsuit from Portlandâs City Hall against Uber moved to federal court. The city is suing the service because it doesnât comply with its pre-existing town car regulations, like charging premium prices and waiting an hour before picking up scheduled rides. But Uber doesnât seem to care that itâs breaking the law. It has argued that it would lose $100,000 in business if the regulations are enforced. "We will continue to operate in Portland," Uber spokeswoman Eva Behrend told The Oregonian.
Chicago
On November 16, a Chicago woman was reportedly raped by a driver who asked her to sit in the front of his car because he was âunfamiliar with the area,â according to the Chicago Tribune. Uber has removed the driver from its service and is complying with the city police.
Los Angeles
Both Los Angeles and San Francisco are suing Uber for misrepresenting the quality of its background checks, especially in light of the companyâs added $1 âSafe Rides feeâ that tout its driver screening. Uberâs process is actually âcompletely worthless,â argued San Francisco District Attorney George Gascon. Lyft, an app-based car company that is weathering regulation better than its larger, more aggressive competitor, recently settled the suit for $500,000.
San Francisco
This month, San Francisco Uber driver Syed Muzzafar was charged with vehicular manslaughter for hitting and killing a 6-year-old girl, Sofia Liu, on New Yearâs Eve 2013. Liuâs family argues that Uber is partly to blame for the accident, issuing a statement that Muzzafar was looking at his phone when the collision happened. Muzzafarâs attorney argues that Uber had nothing to do with it, that the driver was off his phone entirely. But the death is still casting a pall over the companyâs public image.
Roberto Chicas, a San Francisco bartender, may also lose vision in an eye over an UberX ride after the driver took a hammer to his passengerâs face during a dispute in September. âThereâs no doubt that the trail of liability leads back to Uberâs doorstep,â said Harry Stern, the victimâs lawyer, who plans to sue the company. âWe believe they should pay.â
Nevada
In November, Uber suspended operations in the state of Nevada after a judge granted the stateâs request to block the company, successfully arguing that driversâ Uber-enabled ability to use their personal cars to carry paid passengers goes against the rights of taxi companies. âIâm not going to risk the safety of the public,â said Judge Scott Freeman.
London, U.K.
A London woman was offered $31 in Uber credit after her driver âasked me if I wanted him to go down on me,â Newsweek discovered. âI feel that people really trust the Uber name (as I do) and my trust was completely violated,â the woman said. The driver is no longer on the Uber platform, the company confirmed, but no further action has been taken save the paltry monetary compensation.
New Delhi, India
Delhi driver Shiv Kumar Yadav picked up a 26-year-old woman in his Uber car, but instead of bringing her home, Yadav drove her to a secluded area and raped her. According to police, the driver later confessed to the crime. After a storm of bad press, the government âbanned Uber to provide any transport related service in Delhi,â the state government announced. Mumbai and Hyderabad are joining in on the ban, as well.
Spain
A judge in Spain laid a temporary ban on Uber, accusing the company of "unfair competitionâ following a complaint from the Madrid Taxi Association. Drivers Drivers "lack the administrative authorization to carry out the job,â the ruling reads. Yet the company maintains it is "still operating" in the country, reports the BBC.
These infographic maps show where Uber is being outlawed. But the companyâs website tells a different story, toting its services in 52 countries, including many that supposedly ban it. Such is the Uber dilemma: governments will have a hard time rooting out a decentralized, privatized, platform-based car service with no legal responsibility for its driverâs actions. Either Uber will continue to dodge its detractors, or customers will eventually find its public reputation unpalatable. Itâs up to the company to determine which route it takes.