Uber's Arbitration Scheme Backfires


Jan 5, 2019
Austin, Texas
What City & State do you work in?
New York, NY
This one made me literally laugh outloud - (which would be what? LLOL, I think). Anyway...

In an attempt to avoid class-action lawsuits (where a lot of drivers come together and sue Uber at the same time), Uber stipulated in its driver contract that anyone suing them had to do so individually - and had to do so through arbitration rather than the courts.

So to their genius minds, that would prevent huge lawsuits with thousands of plaintiffs. But guess what? Their little plan has backfired big time. I guess when you run such an immoral and corrupt company that it causes so many people to want to sue you - that it doesn't really matter what you do. You can't avoid it.

So guess what has happened... Uber now has more than SIXTY THOUSAND drivers who have filed for arbitration against them. SIXTY THOUSAND! 60,000. Experts say it will cost Uber at least $600 million just to have all these complaints heard in arbitration - and that's before they'd have to pay a single time in awards and penalties to the drivers who filed the arbitration claims. The more than half a BILLION dollars is just the administrative costs they'll incur to pay for the arbitration hearings!


It costs them about $10,000 per arbitration claim. They were thinking that's a lot cheaper than a lawsuit so let's force everyone with a complaint to go to arbitration. And while we're at it - let's make a rule that drivers can't get together and sue us (or go into arbitration) as a single group. Let's force each and every driver with a complaint to open a separate case in arbitration. So, now they've gotten what they wanted. 60,000 drivers have filed separate arbitration cases... costing Uber $10,000 each - just to start the process!

Oh and get this... they say it'll take DECADES to resolve all these cases. In other words, it will never end. Uber has locked themselves into this for basically the rest of the life of the company.

A piece of advice to Uber and all immoral/corrupt companies... the best way to avoid lawsuits, the best way to avoid arbitration and the best way to avoid losing BILLIONS of dollars to people you've cheated and defrauded - is to stop defrauding people and start treating them the way you'd like to be treated. Uber basically tried to outlaw lawsuits. They tried to make it impossible for anyone to lodge a complaint-with-financial-ramifications against them. They tried to shield themselves against any possible financial claims from people they've cheated. But what they have now found out - is that if you're cheating people, it doesn't matter what rules you come up with to protect yourself - your're going to eventually pay. So the best way to avoid paying - is to stop cheating people!
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Jon York

Nov 30, 2018
What City & State do you work in?
New York City
And get this... Uber is required to pay a filing fee for each arbitration case that's opened - and they haven't been paying the fees! (from the article you cited). What a corrupt, abusive and exploitative company.