Uber (UBER.N) is confronting a pivotal federal court trial in Arizona this week that could reshape how ride-hailing companies handle sexual assault liability. The case, filed by Oklahoma resident Jaylynn Dean, accuses the company of failing to protect riders despite a wave of assaults allegedly committed by drivers.
Dean claims she was raped by an Uber driver in 2023 while intoxicated, after he asked harassing questions and stopped the car. Uber maintains that its drivers are independent contractors and argues it cannot be held liable for actions outside the scope of their work.
Bellwether trial for thousands of cases
This trial is a bellwether among more than 3,000 similar lawsuits consolidated in U.S. federal courts, with over 500 additional cases pending in California state courts. Legal experts say the verdict could influence settlements and impact Uber’s investor confidence, balance sheet, and regulatory scrutiny.
Uber has long faced criticism for prioritising growth over passenger safety, but the company has ramped up efforts to reassure the public, publishing U.S. Safety Reports and rolling out features like in-app ride verification, video/audio ride recording, and anomaly detection. Partnerships with survivor advocacy groups aim to reform driver training.
Despite these measures, legal pressure continues. Uber unsuccessfully sought to delay the trial, arguing that Dean’s lawyers had unfairly influenced potential jurors with claims about assault frequency. U.S. District Judge Charles Breyer denied the motion.
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