Uber Tightens US Driver Background Checks Amid Sexual Assault Lawsuits

Uber Technologies Inc. (UBER) is tightening driver background checks in the US and applying the new standards retroactively to existing workers, the company's latest response to a wave of sexual assault lawsuits brought by passengers, according to Bloomberg.

Details of the Action

The new measures include deeper scrutiny of criminal records and driving history, as well as continuous periodic checks instead of a one-time screening at registration. Uber confirmed that the new standards will apply to all currently active drivers.

Company's Stance

Uber stated that the move aims to enhance rider safety and restore trust in the platform. The company added that it is investing in new technologies for identity verification and ongoing monitoring.

Precedents and Context

These actions follow a series of lawsuits accusing Uber of negligence in driver screening, which allegedly led to incidents of sexual assault. The company also faces increasing regulatory pressure in several US states.

Potential Financial Impact

Uber has not disclosed the direct cost of these measures, but they are expected to increase operating expenses in the short term. However, they may reduce future legal risks and improve the company's reputation.