Uber’s 99 Problems

The popular ride-sharing company is in high demand, making significant splashes across the globe with its technology-driven business model. It is gaining in popularity among users, creating new jobs, and has even found its way into Hillary Clinton’s campaign trail. So why is Uber having so many public relations problems?

Uber, whose estimated value is between $40-50 billion after just five years, operates in over 50 countries and 323 cities using technology. The company’s allure to patrons are lower fares and ease in ordering services.

While Uber’s business model is a shift from the standard 9 to 5, according to economist Alan Krueger, drivers are attracted to the company’s flexibility that allows them to self-determine their work schedule. Drivers also cited the company’s good pay. For example, in LA, Uber drivers earn approximately $17 per hour. In NYC, drivers make almost double that amount, clocking in at $30 per hour, according to Fast Company.

Uber’s rising success is not without its challenges, namely the divide over whether their drivers can legally be classified as employees, which would entitle them to benefits, or whether they are independent contractors. This divide continues to court controversy among taxi drivers who say Uber’s new model is a threat to their livelihood. Critics also charge the company of exploiting the definition of “contractor.” According to Real Clear Politics, liberals don’t like Uber because it replaces high wage, full-time work with lower income, part-time work.

Uber has also drawn the ire of people like actor-turned-activist Russell Brand, who recently leveraged his celebrity to raise awareness of what he calls a tax-evading company that does not reinvest its profits into the community.

In California, Uber drivers were deemed employees by California Labor Commission when Barbara Ann Berwick filed a claim against the company, who in turn was ordered to pay Berwick more than $4,000, reports Business Insider. Fortunately, this defeat was not replicated in NYC, where the city’s chief taxi regulator determined that drivers were, in fact, freelancers. Unfortunately, however, Uber continues to face backlash.

In Toronto, 36 UberX drivers were hit with 72 charges of operating unlicensed transportation services, which Uber assured its drivers it would pay. Toronto’s city councilor went as far as to threaten visitors with $20,000 fines, holding them responsible, since passengers are the ones who arrange Uber rides, according to CBC News.

In France, taxicab drivers attacked Uber cars when UberPop launched. The service was quickly shut down for running an illegal taxi service.

The company is currently in mediation with the National Federation of the Blind in California, who filed a suit claiming Uber denied service to blind riders with service animals. This, according to Wired, created a golden opportunity for rival Gett to update its own app, catering, in part, to visually impaired riders.

Despite mounting protests and court cases locally and abroad, Uber has been trying to sell its positive message to the masses, recently holding a rally in Harlem with local clergy and faith community leaders in an effort to fight for their place as a viable transportation option in NYC.

[Photo by Scott Olson / Getty Images]