The Gig Economy

Evaluation of Uberś Legal Exposure for the Conduct of its Drivers

[Studentś Name]

[Instructorś Name]

[Course]

[Date]

Interoffice Memo

To: The CEO

From:

Date:

Subject: Evaluation of Uberś Legal Exposure for the Conduct of its Drivers

Introduction to Uber

Uber was started in the year 2009 to solve the issue of transportation in urban areas by creating an App that connects the Uber drivers and the customers. The App is meant to enable fast and reliable way of securing a private taxi that can take one to any destination. It also provides information such as the estimated time for the taxi to arrive, vehicle particulars as well as the name and phone number of the driver. According to riders, Uber is convenient, cheap and safe (Henama et al, 2017) while drivers consider it a way to become your own boss.

Despite these benefits, Uber has been linked many legal issues, including unfair treatment of its drivers, gender discrimination cases, notoriety and sexual abuse. Accidents have also been reported involving Uber vehicles. In most cases, Uber drivers consider themselves self-employed and not the employees of the Uber Company. This then raises the question of who to blame in cases of illegal acts involving these drivers. Uber, as a transport service provider, wishes to put in place some issues that will make the company to legally operate.

Main Principles of Agency

These are the principles that determine how liable one is held when they act on behalf of another person. Agency is defined as the legal relationship that exists between two parties (the agent and the principal). Parties must consent to an agency relationship, having established that the person has legal capacity to act on behalf of the principal and that the principal has contractual capacity. The agent is expected to act in the interest of the principal and to avoid any mischief or any conflict of interest.

Actual Express Authority

In this case, the principal, who is the Uber Company, and the agent, who is the driver, enter an work agreement and define what is to be done. The principal defines that the agent, for example, should pick and drop clients from one place to another (Fields & Cheeseman, 2016). The agent takes the orders given and performs the work accordingly.

Actual Implied Authority

This is a principle whereby the principal enters an agreement to employ an agent, a driver. The principle, however, does not specify what the agent has to do. The agent will act on his reasoning capacity to satisfy the requirements of the company.

The Principle of Apparent Authority

In this case, the principal enters an agreement with the third party, who is the customer and not the agent. The agent will then have to follow orders given by the principal according to their agreement with the customer. For example, the agent can be ordered to take a specific route and he will have to comply.

The Principle of Ratification

In this situation, no other authority is in place. Contract comes about once the principal has learned about an action. For example, if the driver takes a certain route without being authorized and the principal agrees to it upon learning of the driver’s action, the contract will then become binding.

Uber Liability for the Conduct of Drivers

Uber, as a company promises safe rides for all the customers. The kind of agreement between the partners will determine who is responsible for any illegal act. However, Uber, as a company should be able to access and evaluate the driver, the state of their cars as well as legality of operation and licensing before being allowed into business.

One of the scenarios that Uber will be held liable is when the said action was committed within the authority of the principal (Brotchie Hall Newton & Nijkamp, 2017). This can come from the orders that the agent is given by the principal which may not satisfy the legal authorities. Another case is when there is a fraud or any kind of misinterpretation by the agent but he is acting within the scope of his action of apparent authority.

Steps Uber Can Take to Limit its Exposure for the Conduct of its Drivers.

Uber should allow the drivers to be free and act according to their concise. In this case, many issues will be handled in the responsible manner by the agents. For example, incase an accident happens, the driver should be able to take initiative and take the injured person to hospital. In cases where Actual Implied Authority principle is applied, the agents should be able to make the best decisions that will not affect the operation of the company but give the best service to the customer according to the company requirements.

When Uber enters an agreement with the third party, the customer, the company should be able to handle any issue from the customer without making the driver liable unless he agrees to. This is because, the contract is binding between the company and the customer and the driver just follow orders from the principal. The customer will report direct to the principal in case of a breach of contract.

The binding contracts should be clearly defined and responsibilities well defined. Should any issue comes about; each party should take responsibility where necessary according to the statements of the contract. In some cases, the agents may have to ignore the authority and act in their ethical capacities to take care of the situation.

References

Henama, U. S., & Sifolo, P. P. S. (2017). Uber: The South Africa Experience. African Journal of Hospitality, Tourism and Leisure, 6(2), 1-10.

Fields, C. K., & Cheeseman, H. R. (2016). Contemporary Employment Law. Wolters Kluwer Law & Business.

Brotchie, J., Hall, P., Newton, P., & Nijkamp, P. (2017). The future of urban form: the impact of new technology. Routledge.