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Uber: A Sustainable Disruptor?

uber service and disruption

A few years ago, "uber" meant nothing more to English speakers than a Web-savvy way to say "super" and sound cool. But now, with a capital U, it's a part of the vernacular. Uber is, of course, the ride-sharing service that has become nearly as popular as New York's ubiquitous yellow cab. It's all the rage.

While the rapid growth of on-demand ride services, including Uber, is encouraging new debate on issues from politics to taxes, from security to financial planning, there are sustainability, environmental and legal considerations as well.


Uber: The Sustainability Discussion

Research studies, sponsored by academia and non-profit groups, are only beginning to ask the questions – much less offer data-based conclusions for policy makers. The questions are critical not only for this research but for our collective discourse on the costs, benefits, and direction of on-demand ride services.

What are the environmental considerations of Uber? While the easiest answer might be that there is little to no impact, or that a larger population of urban dwellers can more efficiently function without personal vehicles – providing carbon benefits – new surveys cast doubt on this assumption.

Among the latest data are a report from the University of California, Berkley, Transportation and Sustainability Research Center that reports some users opt for Uber rather than using public transportation. What will the long-term effects on public transportation be with increased use of individualized ride services? What would the environmental impacts be if a rise in individualized transport is combined with decreased use of public transportation?

Well said by Sustainly.com: "While it claims to have a long-term goal of taking cars off the road, all Uber has done in the short-term is incentivize private car travel over far more sustainable methods such as public transport."

Uber providing sustainable jobs? As one of the latest disruptor businesses in the new sharing economy, Uber touts the creation of 160,000 workers who drive for the company. But a closer look under the hood raises questions about the quality of these jobs and the practical effect on already existing jobs (e.g., taxi drivers and other professional drivers).

As reported by the Wall Street Journal, 62 percent of Uber drivers have at least one additional source of income. Uber's own data reports that hourly wages are above those of traditional taxi/chauffeur drivers, but they don't take into consideration gas, maintenance, or insurance – expenses that come out of Uber drivers' own pockets.

As we consider the sustainability of the jobs created by Uber, it is important to ask whether these new jobs offer the same benefits as previously existing jobs. Beyond the question of wages, Uber employees do not have the same employment and workplace protections as other professional and taxi drivers. While taxi fares are tightly managed, Uber frequently slashes fares to entice new customers – shortchanging their drivers.

Sustainable legal foundation? Accountability and security are critical features of a sustainable community. As a general rule, the law is notoriously slow in catching up to new technology. Urbanites may have already adjusted to Uber as part of daily life, but the law isn't quite so hip just yet. Given Uber's uptick in clientele, it was only a matter of time before the issue of ride-sharing liability started making its way toward court.

So who's legally liable if an Uber driver causes an auto accident and injures a paying passenger? The Uber company? The driver? As you can imagine, the respective insurance companies have different perspectives on the matter. These types of legal concerns are already in place for taxis, but the law hasn't yet caught up to the ride-sharing economy.

Uber does actually provide some limited coverage for its drivers, but it's not always enough to cover the typically high costs of an auto accident — and it only applies in certain situations. Outside of that, they say the driver's own auto insurer is on the hook. After all, it's not like Uber owns the car itself.

Then there are complex issues related to driver and passenger behavior, security concerns, and headlines about thefts, sexual assaults and other dangerous – and criminal – incidents. While these circumstances are certainly not unique to Uber, the concern is that our courts are still charting the legal considerations in these types of cases.

Only time will tell how the state courts might ultimately come down on these legal issues, but it's a safe bet that we'll see the case law develop sooner rather than later. Ride-sharing services like Uber are just too popular to go on unaddressed.

Photo Credit: Uber and Changing Transport Choices/shutterstock