Rideshare safety and legal risks passengers need to know

Uber and Lyft have become a part of daily life for millions of Americans. These rideshare companies have revolutionized transportation in the last decade.

Each year, the number of riders continues to grow. Most people assume rideshares are essentially the same as taking a taxi, just more convenient. However, they are not.

Unlike the highly regulated taxi industry, rideshare services have far fewer safeguards for passengers. People must understand that getting into an Uber or Lyft carries safety and legal risks that are very different from taking a traditional taxi.

What many riders don’t realize is that by signing up for Uber or Lyft apps they typically waive their right to bring a lawsuit if they are involved in a collision as a passenger in an Uber or Lyft. This is significant since rideshare crashes are increasing, and many of the causes are unique to the industry.

Drivers often juggle the app while on the road, creating dangerous distractions. Long hours behind the wheel can lead to fatigue, while the pressure to complete more rides can encourage speeding or reckless driving. Compounding the risk, many drivers lack professional driving training.

Since most rideshare drivers use privately owned vehicles, Uber and Lyft cannot consistently monitor the cars, trucks, vans and SUVs their drivers are operating.

Recent investigations have revealed an alarming number of vehicles used for ridesharing purposes have open safety recalls. The rideshare companies also misclassify drivers as independent contractors rather than employees in a ploy to avoid liability and insurance costs.

Most passengers also are unaware of how limited background checks done by Uber and Lyft often are. Unlike traditional taxi services, the screening process is less thorough and often overlook basic safety procedures such as conducting a comprehensive criminal background check. In some cases, individuals with prior assault or DUI charges have been approved to drive.

In the past, crash victims and even victims of sexual assaults by rideshare drivers have discovered too late that they cannot have their case heard by a jury of their peers. The hidden arbitration clauses that rideshare companies insert when signing up for their apps causes passengers to unknowingly agree to force disputes into private arbitration where outcomes often favor the companies.

Our firm has successfully resolved substantial cases for clients injured in rideshare incidents. Holding rideshare companies accountable and getting justice is not easy. Rideshare lawyers are very aggressive, and it requires fighting back against very complex arbitration clauses designed to protect Uber and Lyft rather than its passengers.

Many legal experts argue that these clauses are unfair, leading to calls for reform and there is pressure on the government to address safety and accountability concerns.

One important reform for passengers is that now under federal law, pre-dispute arbitration agreements no longer can be enforced in cases involving sexual assault or sexual harassment. In those situations, passengers have the right to take their claims to court, which is important for victims.

Some states also are beginning to respond. Illinois, for example, recently eliminated the “common carrier” exemption for rideshare companies. This means Uber and Lyft are now held to the same high standard of care for their passengers as taxis, buses, and railroads.

New regulations require more comprehensive background checks and vehicle inspections for drivers, mandatory minimum insurance coverage to protect passengers, transparent fare structures for riders, and authority for municipalities to add their own regulations. While these changes are a step forward, they do not unfortunately eliminate arbitration requirements for victims injured or killed while using rideshares who are not victims of sexual assault or harassment.

Uber and Lyft are billion-dollar corporations, and they fight hard against meaningful reforms which they perceive might affect their profits. They employ powerful lobbyists across the country and often threaten to pull out of states or cities just as they once did in Illinois and Chicago when faced with the possibility of stronger regulations.

Rideshare companies argue being less regulated allows them to provide lower fares to consumers than taxis. But anyone who rides Uber or Lyft on a regular basis knows the fares are often not lower and, in many cases, especially during surge periods, can be significantly higher.

Their fares have risen sharply in recent years, often at a much higher rate than traditional taxis. Instead of acknowledging their responsibility to improve safety and accountability, rideshare companies frequently blame personal injury attorneys for rising costs. Yet the bottom line is, these companies are still making enormous profits.

If Uber and Lyft truly wanted to reduce litigation costs, they would invest in stronger passenger protections across the United States. These safeguards would not only reduce the number of collisions and legal claims but also build trust with the millions of Americans who rely on rideshare services every day.

There are steps passengers can take to protect themselves. People should carefully read the terms of service when they sign up for Uber and Lyft apps and opt out of the arbitration clause when possible.

If you are involved in an accident and physically able, you should take photos of the crash scene with your phone to document as much as possible. It also is key to hire a lawyer with experience in this area of the law as soon as possible. It is crucial to retrieve and preserve evidence early on before it is destroyed or lost.

While some passenger protections are improving in Illinois, progress is slow and inconsistent across the country. Safeguards in Illinois, for instance, do not apply if you are traveling elsewhere to other states.

The rideshare industry is a relatively new profession and one that continues to evolve at a very fast pace, often too fast for lawmakers to keep up with in terms of regulations. That is why public pressure also is necessary to hold these companies accountable.

• Michael J. Sorich is a managing partner at Chicago-based Cavanagh Sorich Law Group, cavanaghlawgroup.com/attorneys/michael-sorich/.