Uber Technology Under Scrutiny for Safety Measures Amid Inquiry
Uber Technologies Inc. Under Investigation
Recently, New Jersey's Attorney General, Matthew J. Platkin, initiated an inquiry into Uber Technologies Inc. (NYSE: UBER) concerning its handling of sexual assaults and the efficacy of its safety messaging for both riders and drivers.
Focus of the Investigation
The investigation aims to uncover the extent of sexual violence reported on the Uber platform and scrutinize how the company has marketed its safety measures and consumer protections. Investigators are particularly interested in whether the advertised safety protocols align with the actual experiences of users.
Subpoena Issued for Internal Data
In September, a subpoena was issued by the Attorney General's office to retrieve internal records related to sexual assaults, misconduct incidents, and product safety decisions.
Alarming Statistics Revealed
An August report highlighted court records suggesting a considerably higher incidence of sexual violence within the app than Uber previously disclosed. From 2017 to 2022, sexual assault or misconduct reports emerged approximately every eight minutes.
Testing of Safety Tools
Uber's teams have experimented with various safety tools designed to mitigate risk, including enhanced rider-driver matching systems, mandatory video recordings, and options for women-only pairings. However, many of these initiatives were either postponed, optional for users, or not implemented across the board.
Company's Response to the Inquiry
Uber's spokesperson, Matt Kallman, stated that the company is fully cooperating with the inquiry initiated by New Jersey and is eager to discuss its ongoing safety initiatives.
Commitment to Transparency
Kallman emphasized that Uber has made efforts to communicate transparently about incidents occurring on its platform, citing safety reports that reaffirm serious safety problems are exceedingly rare. The company claims that 99.9% of trips in the U.S. are completed without incident.
Additional Investigations and Lawsuits
Separately, a House oversight subcommittee began reviewing how Uber manages reports of sexual assault. The company also faces over 3,000 lawsuits nationwide from riders alleging harassment and assault by drivers. A California jury recently found Uber not liable for a 2016 assault incident; nevertheless, they concluded the company had been negligent concerning safety practices.
Stock Performance
Despite these challenges, Uber has seen a substantial increase in stock performance, gaining over 30% in value over the past year. For those looking to invest, exposure to Uber stock can be achieved through the GraniteShares 2x Long UBER Daily ETF (NASDAQ: UBRL).
Current Stock Price Action: As of the latest update, UBER shares have risen 1.30% to $99.06.
Frequently Asked Questions
What triggered the investigation into Uber Technologies Inc.?
The inquiry was opened by New Jersey's Attorney General to look into Uber's safety protocols regarding sexual assaults reported on their platform.
How does Uber claim to handle safety on its platform?
Uber asserts that it regularly publishes safety reports, maintaining transparency about incidents and promoting the rarity of serious safety issues.
What measures has Uber tested to improve rider safety?
The company has tested several initiatives, including advanced matching systems for riders and drivers, video recording requirements, and women-only ride options.
What is Uber's current stock performance?
Currently, UBER shares are showing a positive trend, having gained over 30% in the past year.
Is Uber facing lawsuits related to assault allegations?
Yes, Uber is currently dealing with over 3,000 lawsuits from riders who allege assault or harassment by drivers.
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