NewsWatch
Keeping a critical eye on Uber,
Lyft and other transportation
network companies
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This is the latest edition of AFT NewsWatch, a weekly service of Advocates for Fairness in Transportation, an ad hoc group of regulated transportation service companies dedicated to informing and educating the public on threats to public safety and fair commerce from so-called ride-sharing or ride-booking services such as Uber and Lyft. Visit the Archive to read previous editions. Click here to join our mailing list.
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Uber drivers seek to team up with Teamsters
A day after Uber settled a pair of class action lawsuits over how it classifies drivers, the Teamsters said it plans to form an association for ride-share drivers in California. The labor union said it has received "overwhelming outreach" from Uber drivers seeking benefits, dispute resolution and a stronger voice on the job. "We welcome any Uber drivers seeking to improve their working conditions," said Rome Aloise, president of Teamsters Joint Council 7, in a statement.
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How Uber's big settlement may make things worse for its drivers
If there's one thing the ride-hailing company Uber has become great at, it's identifying legal threats to its business model. That's the reality behind its $84-million settlement Thursday of two federal class-action cases brought by drivers. The cases could have forced Uber to classify its drivers as employees, not independent contractors, a change that could impose billions of dollars in costs on the company, eroding its potential profitability and its supposed value.
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Pennsylvania fines Uber $11M for operating without approval
Pennsylvania regulators fined Uber $11.4 million -- a record for the utility commission -- for operating for six months in 2014 without the required approval. The company said it would appeal. The Public Utility Commission, which also regulates buses and taxis, voted 3-2 for a penalty that was considerably lower than the $50 million fine recommended by a pair of administrative law judges in November.
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Class action lawsuit filed against Uber on behalf of Ohio drivers claiming Uber withholding tips
An Ohio Uber employee has filed a proposed class action against Uber Technologies Inc. and Raiser, LLC alleging Uber withheld tips earned by the driver and incorrectly classified him and other Uber drivers as independent contractors to avoid reimbursing drivers for costs associated with driving for Uber. The complaint, filed in the United States District Court, Northern District of Ohio, proposes to represent all drivers that drove for Uber in Ohio.
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Uber driver arrested for sexually assaulting teenage passenger
A driver for the popular ride-sharing company Uber was charged in the sex assault of a teenage passenger. Luke Wadahara, 24, was charged with first-degree sex assault, which connotes forceful penetration. Wadahara was arrested after the victim alleged she had been sexually assaulted during an Uber ride. Sources said the victim is a 16-year-old girl.
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Uber driver ruled competent for shooting spree trial
An Uber driver charged with killing six people in Kalamazoo during a February shooting rampage was found competent to stand trial. Judge Tiffany Ankley said a mental exam shows Jason Brian Dalton "understands the potential penalties if convicted" and "is able to assist his attorney in defending himself." Dalton, 45, faces six counts of murder, two counts of assault with intent to commit murder and eight counts of felony firearm use.
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Uber settlement takes customers for a ride
Uber reached a settlement with 385,000 drivers in California and Massachusetts. The lawsuit sought to characterize drivers as employees rather than freelancers. Drivers are clearly freelancers. They work when they want to, as much or as little as they want to, and drive their own vehicle. The case would have gone to trial in California, however, where judges have a reputation for ruling against companies in cases like this one.
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72-year-old Uber driver cited in fatal crash involving deputy
A 72-year-old Uber driver has been charged in a fatal crash involving a Seminole County deputy. Florida Highway Patrol troopers said Robert Williams, 72, ran a red light and caused the death of his passenger, Corey Allicock, 28, in December. Troopers said when Williams ran the red light, Deputy Scott Sullivan of the Seminole County Sheriff's Office was heading east on State Road 434 on the inside lane.
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Steve Wozniak is not sure he trusts Uber to do the right thing
While he's all for embracing the sharing economy, Steve Wozniak is not sure Uber has its drivers' best interests at heart. At the Future Transport Summit in Sydney, the Apple co-founder told reporters he had serious concerns about the tech company becoming a monopoly and its treatment of its drivers. "Like a lot of people, I have some distrust of Uber and how their drivers don't really realise at first that they aren't making much money," he said, "maybe losing money on the wear and tear of their cars."
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The Uber scammers who take users for a (very expensive) ride
Earlier this month Angie Bird woke up at her home in London to discover she had been billed for a series of minicab journeys she had allegedly made the previous evening ... in the Mexican cities of Guadalajara and Aguascalientes, more than 5,500 miles away. While she was having dinner with friends, someone - or more than one person - in Mexico had apparently hacked into her Uber account and "went a bit crazy" ordering cabs at her expense.
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The $68B Uber IPO Is DEFINITELY not worth the wait
If you've been patiently anticipating Uber to go public, stop. It's not coming this year, and it may not even hit the markets in 2017. In fact, just last month Uber CEO Travis Kalanick revealed in a CNBC interview that he's trying to push Uber's initial public offering back as far as possible, although he didn't explicitly say why. Well, allow me to offer up a theory: I think Uber's delaying the inevitable IPO because it knows its private market valuation is insane - and ultimately won't fly for very long on Wall Street.
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