Uber changes policy on misconduct allegations
SAN FRANCISCO — Uber’s ride-hailing service will give its U.S. passengers and drivers more leeway to pursue claims of sexual misconduct, its latest attempt to shed its reputation for brushing aside bad behavior.
The shift announced Tuesday will allow riders and drivers to file allegations of rape, sexual assault and harassment in courts and mediation, rather than being locked into an arbitration hearing.
The San Francisco company is also scrapping a policy requiring all settlements of sexual misconduct to be kept confidential, giving victims the choice of whether to make their allegations public.
It’s a conciliatory step from CEO Dara Khosrowshahi. He was hired last August amid a wave of revelations and allegations about rampant sexual harassment in Uber’s workforce, a cover-up of a massive data breach , dirty tricks and stolen trade secrets.
Khosrowshahi has vowed to “do the right thing,” repair the damage from previous missteps and lure back alienated riders who defected to rivals such as Lyft.
Not to be outdone, Lyft announced Tuesday it would also scrap its rules binding passengers and drivers to private arbitration and confidential settlements in cases involving allegations of sexual misconduct.
Uber is shifting its stance after receiving an open letter from the New York law firm Wigdor LLP, which already has filed a lawsuit seeking to be certified as a class action representing women who allege they have been raped, sexually harassed or abused in other ways by Uber drivers.
The letter called upon Uber’s board to drop the arbitration requirement to shine a light on abusive conduct.
“Silencing our stories and the stories of countless other female victims emboldens predators by failing to hold them accountable,” the letter asserts.
Jeanne Christensen, a Wigdor partner, congratulated Uber for shedding the arbitration policy but said it continues to fight against class-action status for the 14 women she represents.
The changes come a month after Uber announced it will conduct criminal background checks on its U.S. drivers annually and add a 911 button for summoning help in emergencies.