Uber Vs. Taxi Drivers: Are They Both Liable?

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Uber vs. Taxi Drivers: Are They Both Liable?

The definition of a taxi cab is a car licensed to transport passengers in return for payment of a fare. The popular driving app Uber is a transportation network company that allows people to gain transportation in exchange for paying a fare. When it comes to taxi drivers, they offer around $250,000 to $500,000 in liability coverages. Meanwhile, for Uber, they offer up to $100,000,000 in liability coverages. There are many similarities between the taxi companies and Uber, and they both have the same goal in mind, so does that mean that they should both face equal liabilities?

Based on multiple studies, Uber is found to be much cheaper than most Taxi services. This is an important …show more content…

Basically, the legal terms and conditions for Uber are meant to keep the company out of legal trouble. This makes sense since they are willing to pay so much in liability coverages. Another interesting piece of information is that Uber themselves admits that there can be some unsafe situations when driving with Uber, saying “You understand, therefore, that by using the application and the service, you may be exposed to transportation that is potentially dangerous, offensive, harmful to minors, unsafe or otherwise objectionable, and that you use the application and the service at your own risk.” Knowing this, it’s understandable that Uber pays more than Taxi companies in liability coverages because their drivers cannot be deemed completely “Professional”. When it comes to Taxis though, some might think that them paying less in liability coverage is a bit unfair, but there is a big difference between how Uber and taxi services pay their liability costs. For Uber, their liability costs cover “accidents”, not specific situations involving their driver or their vehicle. As for taxis, their liability costs cover a wide range of situations that can happen with the taxi driver and their vehicle, which can sometimes lead to larger amounts of money in liabilities being put towards

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