As Uber faces a storm of legal action, the ride-sharing company is readying to open operations in the Buffalo area.
With hundreds of Western New Yorkers signing up to drive for Uber, a look at the fine print of what they are signing up for may be in order.
“First of all, they’re saying that any disputes between Uber drivers and Uber have to be arbitrated. They can’t go to the courts,” she said. “Drivers are waiving their right to a jury trial because arbitration does not have a jury trial and arbitration is final and binding. Any claims for class relief or collective action are waived, as well.”
Another aspect of the agreement is that any issues with the scope of the arbitration clause go to the arbitrator instead of the courts.
“What this achieves, from Uber’s point of view, is that they keep the number of reported cases on all of the issues to a very minimum,” Heckman said. “Arbitration is a confidential procedure.”
Uber and other ride-sharing services including Lyft open for business in Western New York on June 29. For Uber, it’s been a tumultuous time as several company leaders recently stepped down. CEO Travis Kalanick resigned June 20, a week after he started an extended leave of absence.
“This could go down as one of the best examples of how not to run a company, short of defrauding investors,” said Buffalo attorney Matthew Pelkey of Colligan Law LLP.