Lyfting Safety Standards on Rideshare Platforms

Uber reported that 3,045 sexual assaults occurred during its rides in 2018 alone.

In its first-ever study cataloging unsafe incidents in the ridesharing service, Uber (Lyft has promised to follow suit with a study of its own) disclosed jarring statistics that revealed the largely unchecked dangers in for-profit ride-hailing platforms. And considering the lawsuits and public criticism the two companies face, demonstrating their transparency is absolutely necessary. Just four months ago, 19 women joined a lawsuit against Lyft, saying they had been sexually assaulted during rides arranged by the company—bringing the total number of lawsuits to 55.

The incidents aren't limited to just sexual abuse, either. Uber reported a total of 107 car crash fatalities and a staggering 19 murders that took place during its rides between 2017 and 2018.

But the drivers aren't to blame—victims of sexual abuse or violence are both drivers and passengers. Though the majority of the reported rape victims were riders, Uber drivers reported other types of sexual assaults at roughly the same rates as passengers—according to Uber’s data, 42 percent of those reporting sexual assault were drivers, and the 19 percent of Uber drivers and 30 percent of Lyft drivers who are women often report being groped by passengers. Of the 17 murders that Uber reported, eight victims were passengers, and seven victims were drivers (the other four were third parties, like bystanders outside of the vehicles). Simply put, neither drivers nor riders are the problem. By design, for-profit rideshare companies inherently lack the investments in safety necessary to support services of their size.

Indeed, in recent years, ridesharing services have become ubiquitous. Promising to be more available, fast, and affordable, ridesharing platforms like Uber and Lyft have taken the transportation industry by storm. But their profitability is contingent on minimizing costs in employee protection—so much so that their employees aren't employees at all: they're independent contractors. Instead of working as official employees and filling out W-2 tax forms, which guarantee worker protection, safety training, and stricter labor laws (including benefits like minimum wage, health insurance, and overtime pay), as independent contractors, rideshare drivers fill out 1099 forms. Because of drivers’ independent contractor status, rideshare companies also aren't responsible for payroll tax, unemployment insurance, workers’ compensation, and state taxes. On top of that, companies can't be held liable for incidents concerning their employees. This, in turn, saves the companies massive costs—but because of a lack of these employee protections, rideshare companies aren't held accountable despite mounting pressure from numerous accounts of sexual assaults, murders, and crash fatalities.

For example, in a case in Walton County, Florida, a driver drove a passenger to his home and raped her. But Uber asserted that the driver "was at all times... an independent, third-party transportation provider” and that Uber "does not and did not employ" the driver nor "had an agency, employment, partnership, joint venture or joint enterprise relationship with him." As it stands, rideshare companies like Uber and Lyft have no legal obligation or fiscal incentive to stand accountable for their workers.

On top of that, profitability for rideshare companies is at an all-time low—Uber posted an operating loss of about $3 billion in 2018, which followed a $4 billion loss in 2017. And since the start of the COVID-19 outbreak, stocks for both Lyft and Uber have dropped by over 30 percent; all in all, some experts doubt that the companies could even survive the pandemic. To cut costs, Dara Khosrowshahi, Uber’s chief executive, has laid off hundreds of employees. As it stands, getting companies to take the added costs of reclassifying their drivers as official employees seems to be a long shot.

But it isn't impossible. For one, despite rideshare companies' fears, the cost of reclassifying their workers as employees doesn't have to mean the ends of their businesses. As a result of the utter lack of accountability for their employees, not only have countless passengers and drivers fallen victim to sexual abuse or violence, but reports of rape, murder, and a general lack of worker protection have also had tremendous negative impacts on their profits, as well. For example, the release of Uber's safety report alone cut the company's revenue by $1.5 billion. Many experts agree that investing in worker protection would do more than help ensure the safety of drivers and riders that use ridesharing platforms. In addition, it would improve the platforms' public perceptions, thus improving their stocks and their profits. In no world should fiscal viability and safety be mutually exclusive—for drivers, riders, and companies, it's a win-win.

Huge strides in promoting safety have already been made. Leading the way is California, which just passed a landmark bill on a 29-11 vote in the State Senate in September that forces rideshare companies like Uber and Lyft to reclassify their workers as employees. Following suit is New York City; though it failed to reclassify rideshare drivers as employees, it did pass a minimum wage for them. Pushes for worker safety across the country are continuing to gain momentum, and coalitions of labor groups are urging for legislation similar to California's in Washington State and Oregon.

The rest of the country ought to follow suit and reclassify all rideshare drivers as official W-2 employees. For far too long, companies have chosen to protect profits over people. It's time for the United States federal government to step on the brakes before we crash into the consequences.