Uber and Lyft are successful, innovative companies that are offering helpful services to people all over the world, so it’s interesting to note the amount of legal troubles both companies have faced recently. Today, we will look at some of the biggest legal issues that Lyft and Uber are currently experiencing.
1. Local Regulations
Traditional taxi services are extremely angry at the new ride-sharing industry by pointing out that rideshare drivers do not have to follow the same requirements as taxi drivers. Taxi drivers are extremely frustrated because they’ve had to abide by city rules, which include licensing fees, commercial insurance laws, uniform rates and a whole mess of other requirements. Drivers for Uber and Lyft don’t have to follow any of these regulations because they’re considered “independent contractors”.
City councils and local governments are finally starting to listen to taxi companies’ complaints. Recently, the Western Washington Taxi Cab Operators Association in Seattle filed a lawsuit against unfair business practices.
2. Insurance Issues
Another conversion legal issue Uber and Lyft driver gets into is the subject of vehicle accidents. When a driver gets into an accident who is liable? Normally, in a traditional employee-employer relation, if there is any type of body/vehicular damage, then the employer is liable. For Lyft and Uber drivers, this isn’t the case because they’re “independent contractors”.
As independent contractors, the drivers are solely liable for property damage and bodily injury caused while transporting passengers or while driving in search of passengers. This controversy has caused many people who work for Uber and Lyft to file lawsuits because they feel like they should be considered real employees of the company.