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UBER: Who Is Responsible in a Sharing Economy?
Wednesday, Jan. 29, 2014
With a $4 billion valuation, Uber is among the fastest growing startups around. The app-based service helps people find a taxi and then facilitates the transaction, but what’s getting more attention is that just about anybody with a car can register with Uber to be a de facto taxi. With this new “sharing economy,” many questions of regulation are emerging, some of which are coming to a head with a wrongful death suit filed on Monday against Uber. Sophia Liu, a 6-year-old girl, was struck and killed by an Uber driver on New Year’s Eve. The driver, Syed Muzaffar, was on his way to pick up his next fare at the time of the accident. Uber’s legal team has argued that because Muzaffar did not have a fare at the time, “he was not providing services on the Uber system during the time of the accident.” The family’s attorney has countered that because he was on his way to pick up a fare, he was in fact representing Uber at the time of the accident. For drivers like Muzaffar, Uber has commercial insurance, but it only kicks in when there is a customer in the car; otherwise, the driver must have their own coverage. Is Uber accountable for the actions of its drivers in-between fares?
Kirk: In the sharing economy, we do put ourselves at more risk. While it may not be practical for Uber to screen and license every driver, online resources could enable them to weed out the least capable by checking driving and criminal records, and by requiring adequate insurance. There is a rationale for "let the user beware" as long as the rudimentary measures are taken. eBay faced this problem of serving as the market for many and unknown buyers and sellers, and then solved most of the problem with user ratings and payment processing that protected the buyers. Uber should also carry some level of liability insurance, and should not hide behind the distinction that Muzaffar was going to pick up a fare rather than carrying a fare at the moment.
Patrick: For me, I think Uber’s app clears all this up. Say you want to get a cab. The app recognizes your current location and sends a signal to all of the drivers in the area. If the driver is willing to take the fare, they indicate this on the app, followed by the customer choosing to accept or decline that particular driver. Once done, the app tells the customer how long until the driver arrives, and even tracks the driver by GPS. The transaction starts then and there, and so should Uber’s liability.
Uber and a Child's Death (NY Times)
Framework for Thinking Ethically (Markkula Center for Applied Ethics)
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