Uber ordered to pay millions for rape of driver

Historic ruling in Arizona could influence thousands of similar lawsuits across the U.S.

Uber’s order to pay US$8.5 million in a case involving accusations of rape against one of its drivers marks a turning point in the long-running legal dispute over the responsibility of ride-hailing platforms. The decision, taken by a federal court in the state of Arizona, recognized the company as guilty of “apparent agency”, paving the way for the advancement of around 3,000 similar actions spread across the American territory.

The case once again exposes the structural tension between the business model of digital platforms and the effective protection of users. At the same time, it reignites the debate about the extent to which billion-dollar companies can shield themselves from liability by classifying their drivers as independent contractors.

Arizona case becomes national reference

The trial took place in a United States District Court, in Phoenix, and was authored by Jaylynn Dean. She claimed to have been raped by an Uber driver in November 2023, while returning to her hotel after a ride requested through the app.

On Thursday, the jury found Uber responsible for the apparent link between the company and the driver, even without acknowledging direct negligence or design flaws in the platform. As a result, the company was ordered to pay US$8.5 million to the plaintiff. The court, however, did not order the payment of punitive damages.

Despite these limitations, experts believe that the verdict has significant symbolic and legal weight. This is the first trial concluded among thousands of lawsuits accusing Uber drivers of sexual assault or serious misconduct. All of these actions were consolidated in a single federal court, which increases the impact of the decision.

Corporate responsibility comes into focus

The central thesis accepted by the jury was that of “apparent agency”. In practical terms, this means that, from the user’s point of view, the driver acts as a representative of the company. The app, brand, payment system and communication create the perception that the ride is provided by Uber, and not by an isolated individual.

This understanding directly confronts the legal strategy adopted by the company over the years. Uber maintains that it should not be legally responsible for the actions of drivers, as they are classified as independent contractors. Still, the decision in Arizona suggests that this formal separation is not always sustainable in the face of users’ concrete experience.

Furthermore, the verdict sets a relevant precedent. Although it does not automatically bind other courts, it strengthens the arguments of victims in similar cases and pressures the company to review its public and legal stance.

Uber’s reaction mixes defense and caution

After the decision, Uber released a statement seeking to minimize the impacts of the trial. In a note sent to CNBC, a company spokesperson said: “This ruling confirms that Uber acted responsibly and invested significantly in passenger safety. We will continue to put safety at the center of everything we do.”

The company also made it clear that it intends to appeal the decision. At the same time, he reinforced that the jury did not recognize negligence or design defects in its platform, an argument that Uber should explore in the next legal stages.

Even so, corporate speech encounters resistance outside the legal environment. For victim lawyers and women’s rights organizations, the conviction represents an important step forward in holding large technology companies accountable.

Lawyer talks about validating survivors

Sarah London, a lawyer at Girard Sharp and representative of Jaylynn Dean, called the result a symbolic and political victory. In a statement to CNBC, she said the decision “validates the thousands of survivors who came forward, at great personal risk, to demand that Uber be held accountable for prioritizing profits over passenger safety.”

The statement echoes recurring criticisms made against the company. Activists and jurists accuse Uber of growing rapidly without investing, to the same extent, in effective mechanisms for preventing and responding to cases of sexual violence.

Although the company highlights recent advances, the history of complaints continues to weigh against its public image and institutional credibility.

Number of complaints raises questions

The volume of accusations involving Uber is one of the most sensitive elements of the debate. Last year, the New York Times revealed that the company received more than 400,000 reports of assault and sexual misconduct between 2017 and 2022. The number, according to the newspaper, is much higher than what had been officially disclosed by the company itself.

In response, Uber published a report in August of the same year stating that the most serious cases of sexual assault on the platform fell by 44%. Still, critics question the methodology and transparency of this data, in addition to pointing out underreporting as a structural problem.

This contrast between official numbers and independent investigations reinforces the distrust on the part of society in relation to the company’s corporate narrative.

Security measures advance, but under pressure

In recent years, Uber has started to announce a series of tools aimed at the safety of passengers and drivers. These include an emergency button within the app and a PIN verification system, which seeks to ensure that the user enters the correct vehicle.

More recently, in July, the company launched a pilot project in the United States that allows female drivers and passengers to opt out of being paired with men. The initiative emerged after years of demands from feminist groups and survivors of sexual violence.

Although these measures represent progress, critics say they arrived late and under strong judicial and media pressure. For these groups, safety cannot be treated as a market differentiator, but as a basic obligation of any transport service.

Entire sector faces scrutiny

Uber is not alone in this scenario. Its main competitor, Lyft, also faces lawsuits related to sexual assault and harassment involving drivers registered on the platform. This indicates that the problem is not restricted to a single company, but to the business model adopted by the sector as a whole.

The conviction in Arizona, therefore, could have effects that go beyond Uber. By strengthening the notion of corporate responsibility, the decision puts pressure on other platforms to review internal policies, contracts and legal strategies.

In a market that profits from the intermediation of essential services, demands are growing for technological innovation to be accompanied by social commitment. The judgment does not end the debate, but it makes it clear that justice is beginning to demand more from app transport giants.

With information from CNBC*