Ride-hailing company Uber Technologies Inc. will no longer force individuals who allege sexual assault against its drivers or employees into mandatory arbitration, the latest in a series of moves intended to help the company recover public trust after a year of scandals.
Large companies tend to prefer arbitration because it typically results in a faster settlement and is primarily conducted in private. Clauses to force customers into arbitration are typically included in lengthy user agreements and tend to get attention only after major incidents, like when hackers breached Equifax and stole private financial data from 143 million Americans.
Uber says the move to drop forced arbitration will allow sexual assault victims to control how to pursue their claim, whether that be in private arbitration, mediation or open court.
[Also read: Democratic senator urges Uber to end forced arbitration for alleged victims of sexual misconduct]
“Survivors will be free to choose to resolve their individual claims in the venue they prefer,” chief legal officer Tony West wrote in a blog post on Tuesday. “Whatever they decide, they will be free to tell their story wherever and however they see fit.”
West also said the San Francisco-based company would allow survivors the option to publicly talk about the abuse or harassment they suffered.
The series of actions follows a year of bad press for the company. Former Uber employees in 2017 alleged that executives ignored numerous claims of sexual assault and harassment. The company’s chief executive officer Travis Kalanick also resigned last year as a result of the controversy, though he remains a shareholder and board member.
[Also read: Uber halts self-driving car tests after fatal crash]
Competitors like Lyft have reportedly profited off of the scandals at Uber and grown their share of the competitive ride-hailing market at a time when the company is said to be considering an initial public offering. Following Uber’s announcement, Lyft also announced it would be dropping its forced arbitration clause for sexual assault or harassment victims.
“We agree with the changes and have removed the confidentiality requirement for sexual assault victims, as well as ended mandatory arbitration for those individuals so that they can choose which venue is best for them. This policy extends to passengers, drivers and Lyft employees,” a spokesperson said.
West said Uber would also publish a safety transparency report that details sexual assaults and other incidents that occur on the company’s platform.
“This was a decision we struggled to make, in part because data on safety and sexual assaults is sparse and inconsistent,” he wrote. “We know that a project of this magnitude will take some time, but we pledge to keep you updated along the way.”
