Alexandru Diac

November 13, 2022

University of Detroit Mercy

An Ethical Analysis of Uber

Through the rise of technology and progressive applications, Uber became a highlighted

company for many. Based in San Francisco with operations that run in 72 countries and over

10,000 cities; Uber is a service provider that connects drivers and those in need of a ride through

its online transportation platform. Using an online or mobile device, users can search for a

location or address that they need a ride to through Uber. The app will then connect them with a

driver who is currently on the road working for Uber, and will provide a ride to the desired

location. The driver then receives pay for the trip, while a small compensation goes to Uber for

its software.

In recent years, much has been brought into question about Uber; with many legal

debates being at the forefront. While there are a series of legal issues that Uber is combatting, the

specific issue under analysis in this report is with regards to employee classification. Currently,

claims that Uber drivers are not receiving adequate wages with no benefits are headlining the

company’s legal problem. Under labor law, there are a series of provisions and employee

protections put in place; however, Uber holds that their drivers are titled as independent

contractors and not company employees. The true outcome of what the drivers are to be

classified is a determinant aspect of this specific legal issue. As the drivers do a considerable

proportion of the labor, the drivers are seeking employee classification. Meanwhile, the

company’s more significant position holders deem the drivers independent.

functionality. Uber’s model creates the image of a “gig economy,” which is unsustainable.

Furthermore, Uber provides small relative pay and no benefits for their drivers. With much of the

liability being placed on the individual driver who is using his or her own time and vehicle to

contribute to Uber, ethical values are brought into question as there is no proper job security or

job progression under Uber’s model. Safety is also brought into question, as there is minimal

training and requirements in becoming an Uber driver.

Uber has put forth significant investment in strategic plans in efforts to support their non-

changing classification of the drivers. Holding still that their drivers are not employees, Uber has

launched many marketing campaigns online; along with their ethical code for practice that can be

found on their website. This can be further seen in support of California’s Proposition 22,

backing the benefits of gig economy workers.

A ridesharing app that allows one to receive a ride at any time seems like a model that

can be developed into a concept that creates overarching positivity addressing the transportation

needs of many. This bred the rise of Uber, relying on individuals to make up a ridesharing taxi

service through their online software. While seeming like a great concept, a series of legal issues

facing Uber proves how difficult it is to truly execute this model. As the legal components are

discussed in other sections of this report, it is important to note that the company is also not free

from ethical issues and social challenges.

In connection to the chosen legal issues facing Uber, several ethical challenges come in-

hand. With drivers being identified as independent contractors, rather than employees, a lack of

labor regulation proposes the development of a “gig economy,” as stated by Florence Chee of

Loyola University Chicago, which is unsustainable (2018). Obtaining pay for minimal resources,
time and vehicle is a positive outlook for a temporary period. Under this idea, Uber creates a

practice that provides minimal job progression or security. This, along with the desire for

utilizing driverless vehicles, structures one’s work section around a practice with no benefits and

minimal protection. Furthermore, the Uber process has created a public sense in which public

transit has slowly been becoming more irrelevant, a notion which studies have proven to be

untrue (Chee, 2018). A short passage from the paper of Florence Chee reads:

Public services are mandated to be accessible in many ways Uber is still not, such as to:

a) underserved communities b) the vulnerable (physically or otherwise) c) those without

credit cards or smartphones. Publicly accessible transportation, especially in the US

context in which Uber originated, is already embattled, and ride hailing services have

served as a rationale to choke off resources to publicly accessible services (Jerch, Kahn &

Li, 2016).

This produces a complex ethical situation, in which necessary public transportation is being

demoted by Uber; utilizing drivers with minimal labor regulations, training requirements, and an

unsustainable employment practice. While this is not the legal issue of focus through this report,

it is important to note Uber’s previous ethical failure in regards to discrimination. In US Plaintiff

vs Uber Technologies, the cause of action stated that, “Uber discriminates against passengers

with disabilities and potential passengers with disabilities, in violation of Title III of the

Americans with Disabilities Act, 42 U.S.C. §§ 12181-89, and its implementing regulation, 49

C.F.R. Part 37, through its policies and practices of imposing wait time fees on passengers with

disabilities who, because of disability, require more time to board the vehicle” (2021). The

unorganized and uncalculated procedures by the overarching company leaves many ethical gaps

in Uber’s practice. This seemingly builds into the next social concern, that classifying the drivers

as independent contractors creates a lack of driver preparation and safety. Uber has rather low
requirements regarding becoming a driver: “must be over 21 years old, pass a state and federal

background check, have 1 year of driving experience” (Uber.jobs). Along with the ethical issue

of safety and protection, a liability challenge becomes presented as drivers operate on their own

matter as part of a commercially based organization.

Perhaps the most directly affected stakeholders by this issue are the drivers themselves.

Contributing their time and resources to the company, Uber is impossible without the

culmination of their volunteer drivers. This said, low wages and minimal incentives can

significantly drive the desire away from wanting to become an Uber driver and spread

unhappiness through the stakeholder environment (Kanter, 2015). This creates a domino effect

that negatively pulls all the stakeholders down, discouraging all levels from private investors to

large partnership firms.

This issue can be seen to be affected by the inconsistency between law and ethics.

Specifically in the legal trials that Uber faces, some of the ethical challenges are not necessarily

aligned with the law. For example, the minimal training is not currently in legal question for

Uber’s practices, but the safety predicament that stems from it poses serious ethical issues. Uber,

as an organization, has come out with public marketing regarding ethical values. It is titled under

the slogan “Doing the right thing. Period.” (Uber, 2021). This code aims to create a progressive

company environment, both legally and ethically. This is done through the encouragement of

Uber employees to stand up and speak for each other, bringing awareness to any flaws in Uber or

related to the company. They are trying to implement a value of company integrity to the public,

amidst the rising legal and ethical challenges. Alongside this code of ethics, Uber has created a

“Business Conduct Guide,” which was revised in 2019. This primary source document writes out

Uber’s intended values; such as “Making the right decision... Telling our story... Be loyal...

Competing fairly...” being just some of the components listed amongst the table of contents, with
the code of ethics for directors finalizing the document (Business Conduct Guide, 2019).

Through the established values in this document, the concept that Uber’s drivers and employees

remain separate, rooting much of their ethical and legal issues.

While Uber remains still on the idea of holding their ideology that the drivers are

independent contractors, some progressive breakthrough is being made internationally. Sabrina

Sy writes in an article that, “Uber stated that it would reclassify more than 70,000 British drivers

as workers who are entitled to a minimum wage, vacation pay, and access to a pension plan.”

(2021) It appears that with legal battle and ethical dilemma in question, Uber is trying to

maintain a positive public outlook, working towards an efficient compromise between their

drivers and the company. Settlements with the Federal Trade Commission also resulted in the

sending of refund checks totaling $20,000 back to Uber drivers to compensate for exaggerated

income predictions (Federal Trade Commission, 2018).

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