?? Weekly Roundup: Uber No Longer Just Hiring Drivers as Contractors

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Uber is now hiring contractors for AI data labeling. FTC investigates Uber over One subscription terms. A New York court upholds Uber’s arbitration clauses. Judge orders Empower to shut down in Washington, D.C. We break it all down for you.

Uber No Longer Just Hiring Drivers as Contractors: Uber Enters AI Outsourcing Marketnbsp;

SOURCE: Bloomberg

Uber is venturing beyond just contracting drivers into the AI contracting market with its new division, Scaled Solutions. This unit offers AI training and data labeling services to Uber, as well as other businesses, leveraging the company’s experience in managing a large gig-economy workforce.

• Scaled Solutions builds on Uber’s internal team that handles large-scale annotation tasks for its various services, as well as contracting for other companies. Clients include Aurora Innovation and Niantic, with services ranging from validating self-driving software data to evaluating location data for AR games.
• The company is recruiting contractors with coding and language skills from India, the U.S., Canada, Poland and Nicaragua for AI-related tasks.
• Uber aims to capitalize on its expertise in flexible work opportunities, as well as compete in the growing market for AI development.

FTC Investigates Uber One Subscription Service for Consumer Protection Violationsnbsp;

SOURCE – Bloomberg (Paywall free)

The Federal Trade Commission (FTC) has launched an investigation into the Uber One subscription service, focusing on potential violations of consumer protection laws. The probe, which began earlier this year, stems from customer complaints about unauthorized sign-ups and difficulties in canceling the service.

• Uber One, with about 25 million subscribers, offers discounts on rides and deliveries for a monthly fee. Roughly 15% of Uber’s customer base has an Uber One subscription.
• Uber confirms receiving FTC inquiries and states it’s cooperating with the review, asserting that its cancellation process is compliant and user-friendly.
• Uber’s lawyers have complained about the FTC’s accelerated timeline and settlement demands, criticizing the agency for attempting to resolve the case quickly before the upcoming change in administration.

NY Court of Appeals Upholds Uber’s ‘Clickwrap’ Contractnbsp;

SOURCE – Reuters

New York’s highest court has ruled that Uber’s online ‘clickwrap’ contracts are binding, joining other courts nationwide in upholding such agreements. However, the court also determined that challenges to the contract’s enforceability must be decided by an arbitrator, not the court.

• The case involves Emily Wu, who was injured after being dropped off by an Uber driver and subsequently filed a lawsuit. Wu had agreed to Uber’s updated terms of service, which included mandatory arbitration, after filing her lawsuit but before Uber was aware of it.
• The court ruled 5-2 that Wu must arbitrate her claims due to her consent to the online contract. The court upheld that failing to review contract terms can have legal consequences, regardless of the contract format or consumer sophistication.
• Wu’s lawyer argued that Uber engaged in “contract by trickery” by not informing her counsel about the updated terms affecting her pending lawsuit.
• The case highlights ongoing debates about the fairness and transparency of online contracts, especially when they affect existing legal proceedings.

Judge Orders Empower to Cease Operations in Washington D.C. Until It Registers with Department of For-Hire Vehiclesnbsp;

SOURCE – Washington Post (Paywall free)

A D.C. Superior Court judge has ordered Empower, a local ride-hailing service, to immediately stop operating in Washington D.C. until it registers with the city’s Department of For-Hire Vehicles (DFHV). Empower argues that drivers are customers of its software, not employees and that drivers are independent contractors that offer services to customers directly.

• The judge ruled that Empower must follow the same regulations as other ride-share companies, rejecting the company’s arguments against registration. Empower has resisted registration and continued operations despite repeated cease-and-desist orders and fines from DFHV.
• D.C. officials argue that Empower’s cost savings come at the expense of rider safety, as Empower drivers at times do not have adequate insurance, pass background checks or adhere to certain policies.
• Empower’s CEO claims they conduct background checks and require proof of insurance, but the company’s website suggests these measures are discretionary.

Will Uber-Style Instant Pay Come to All Jobs Soon?nbsp;

SOURCE – YouTube Shorts

The National Bureau of Economic Research used Uber data to study the effects of switching from a fixed weekly pay schedule to a system that allows on-demand withdrawals.

The researchers found that instant pay led to a substantial increase in the amount of time drivers worked, with economists saying this might be a way to extract more labor from workers at a low cost.

Learn more in this week’s YouTube Short!

QUICK HITS

• A Las Vegas Uber driver was shot and killed in a road rage incident after he got out of the vehicle, walked to the other car, and banged on the driver’s side door window. – 8 News Now
• A family is suing Uber and an Uber driver after a fatal crash in Philadelphia caused by an illegal turn, resulting in the death of 41-year-old Steven Tyree Moultrie in August 2024. – NBC Philadelphia
• A 24-year-old Utah rideshare driver faces felony charges for allegedly attempting to sexually abuse and forcibly detain a distressed female passenger in his vehicle. – KSL

Must Listen Or Watch RSG Content

Here are this week’s featured podcast episode and YouTube videos:

• RSG263: Justin Pappan on Renting a Fleet of Teslas! (EV Access)
• WHY Uber/Lyft Drivers NEED Dash Cams
• How To Save Money With MyLoot
• Lyft Announces More Driver Tools In App
• The Rideshare Guy en Espa?ol
• Make sure you Subscribe so you don’t miss out on future conversations and interviews!

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