bbieron@platformeconomyinsights.com

Federal Jury Finds Uber Financially Liable for Driver Sexual Assault

Feb 21, 2026

Report from Bloomberg

In Brief – A federal court jury in Arizona has ordered Uber to pay $8.5 million in damages to a young woman who was allegedly raped by her driver in 2023. The decision marks the first time Uber, which has been fighting such claims for a decade, has lost a case at trial. With Uber facing nearly 3,000 similar lawsuits nationwide, the result raises the company’s financial exposure for harms caused by drivers, which industry analysts have estimated could reach $500 million. For years, Uber has successfully defended itself by arguing it cannot be held responsible for drivers’ actions because they are independent contractors, not employees. The plaintiff’s attorney said the decision validates thousands of survivors who have accused Uber of prioritizing profits over passenger safety. The company, which said it will appeal the ruling, noted that the jury rejected several plaintiff claims, including that the platform was negligent in its safety practices and that its app was defective, and did not award punitive damages.

Context – Uber has faced more legal and regulatory challenges than any other gig work platform. (AirBNB runner-up?) Most revolve around whether drivers should be treated as employees of the platform or independent people using the platform to earn money. The most prominent have involved labor advocates arguing that Uber skirts employment laws and required employee benefits. In the US, federal and state legislation has been stymied since California voters exempted gig-drivers from the state’s gig worker classification law in 2020, and while the Biden Administration expressed some interest in regulatory changes toward classifying gig workers as platform employees, the Trump Administration is not sympathetic. In the EU, while backers of the Platform Work Directive initially intended to set uniform gig worker employee classification standards, the final version left specifics largely in the hands of each member state, although on torts, the directive’s new rebuttable presumption of an employer-employee relationship for many gig work platforms could increase platform liability.

View By Monthly
Latest Blog
Brazil Orders Grok to Stop Sexualized Images

Report from DigWatch In Brief – Brazil has ordered X to stop AI chatbot Grok from generating sexualized images, adding to the global regulatory pressure on Elon Musk’s social media platform and AI chatbot. The directive, issued by Brazil’s National Data Protection...

India Adds Deepfakes to Tightened Social Media Takedown Regime

Report from MediaNews4U In Brief – India has amended its rules requiring social media platforms such as Meta, YouTube and X to remove unlawful material, adding AI-generated “deepfakes” to the regime. The new rules, which go into effect on February 20, bring...

French Retailers and Government Backers Resisting Online Marketplaces

Report from Reuters In Brief – France’s Minister of Small and Medium Businesses says Shein and other online retail platforms will face a “year of resistance" from traditional storefront retailers and their backers in the government. Serge Papin argued that retail...

EU Commission Directs Google to Play Nice with Chatbot Competitors

Report from Courthouse News In Brief – The European Commission has announced two “specification proceedings” to direct Google in setting policies related to third-party AI chatbot competitors that comply with its Digital Markets Act (DMA) obligations. One process...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required