FAQ - Ride Share Companies

Rideshare companies — such as Uber and Lyft — provide lots of rides to people in the United States. In fact, Uber, alone, grossed $10.2 billion dollars last year in ride according to Statica. But what happens if the person using an Uber or Lyft gets injured through the negligence of the rideshare driver? From texting and driving or otherwise?

And what if the passenger had elected “limited tort,” limiting one’s rights to sue?

Limited Tort – Private Passenger Vehicle Exception

First of all, when it comes to limited tort, there exists a “private passenger vehicle” exception. This means, only those injured as a passenger in a private passenger vehicle can be bound by limited tort. However, rideshare companies provide a commercial service. As such, a ride share vehicle is not a “private” passenger vehicle, so limited tort does not apply to those injured inside a Lyft or Uber.

Same for pedestrians. Those struck by an Uber or Lyft face no “limited tort” issues because they’re not “passengers.”

Ride share Company Liability

In Pennsylvania, the driver of every vehicle owes a duty to his passengers to take reasonable steps to avoid causing an accident. Otherwise, the driver can be liable. Plus, when a driver provides a ride in the scope of his employment — as a bus driver, or taxi service — as an employee of a transportation company, the transportation company can be held vicariously liable for injuries caused by the driver. Vicarious liability means liability is automatic, regardless of whether the employer had knowledge of the driver’s allegedly poor driving skills.

But note, for vicarious liability to attach to Uber — for its driver — the driver must be an actual employee of Uber at the time of the collision and acting in the scope of his “employment.”

But what is “employment”?

“Employment” Defined

Employment means that one party has the right to control the details of how another performs her work. For years, ride share companies have maintained they’re not “employers.” They claimed that their drivers are merely “independent contractors” who set their own hours and determine which customers to transport, meaning, the drivers — not Uber or Lyft — maintain the right to control how they do their work. So the ride share companies should not be vicariously — or automatically — liable for their negligence.

And courts have agreed. Until recently, in California. According to the Associated Press (AP) in this article:

SACRAMENTO, Calif. (AP) — App-based ride hailing and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled Monday, allowing the tech giants to bypass other state laws requiring worker protections and benefits.

The ruling mostly upholds a voter-approved law, called Proposition 22, that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like paid sick leave and unemployment insurance. A lower court ruling in 2021 had said Proposition 22 was illegal, but Monday’s ruling reversed that decision.

So in California, at least, Lyft and Uber are not vicariously liable for their drivers’ negligence. But legal trends in California — and New York — tend to radiate into the surrounding states and the country, eventually, so it’s quite possible that Pennsylvania will also treat ride share drivers as independent contractors, soon.

Other Theories on Ride Share Companies

Even in the absence of vicarious liability, a ride share company can face liability for the conduct of its independent contractors as follows:

- - - negligent selection of the driver
    - failure to train the driver
    - failure to warn the public
    - breach of contract with the ride share user, and
    - other theories

Let’s Get Started!

Contact a Pittsburgh lawyer at our firm today for a free consultation about limited tort or any claim on an rideshare driver f in Western PA.