Uber faces a blow to reputation

May 17, 2016, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Four people in Toronto last month who had hailed a ride using the UberX ap for a ride got a series of nasty surprises. Firstly they were being driven down the road when an SUV struck them. Police reported a total of eight injuries in the accident. The SUV was being pursued by police. If the accident occurred while a crime was being committed the SUV insurer can deny any claims.

Their day got a bit worse when upon investigation it was revealed that the driver of their Uber car was actually using a rental vehicle, and was contradicting the terms of the rental agreement. The rental insurance company can refuse to pay claims as the vehicle was being used for a purpose that contravenes the rental agreement.

Toronto Taxi Alliance holds this accident up as an example of the poor regulation by BER of its drivers – Uber claims to inspect cars, driver ownership, registration, and insurance in order to assure passenger safety. Clearly in this case that didn’t happen. This does bring Uber’s credibility as a whole into question. Uber Canada claims that they do not allow rental cars to be used by drivers working as their contractors on UberX.

The car rental companies have little to say about this misuse of their cars except that they really have no control over what a person does with a rental car unless there is a reported problem such as an accident. Many industry watchers believe the rental companies are remaining silent about the issue as they are interested in servicing Uber in North America. Uber has been allowing the use of rental vehicles in those US jurisdictions where Uber is operating legally and is regulated.

The problems with Uber operating as a non-regulated and non-conforming taxi like service will continue until some agreement is reached between regulators and Uber. Taxi companies have rigid regulatory controls in place regarding vehicle and driver standards, training, and insurance requirements. It’s one of the reasons they are slightly more expensive to use then Uber. Conforming to regulations does cost money.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

The opinions expressed here, while intended to provide useful information, should not be interpreted as legal recommendations or advice.