The US Department of Justice (DOJ) has initiated a significant civil investigation into Uber Technologies Inc., focusing on potential systemic discrimination within the global ride-hailing firm. The probe, confirmed by the company, represents a major escalation of regulatory scrutiny into its business practices.
In a securities filing on Friday, Uber disclosed it had received a 'pattern or practice' inquiry from the DOJ's Civil Rights Division. This specific type of investigation is reserved for examining widespread, company-level violations of federal law, rather than isolated incidents.
Scope of the Investigation
While the exact contours of the probe remain under wraps, legal experts suggest it likely centres on Uber's employment and wage practices. A key area of focus is the contentious classification of its drivers as independent contractors rather than employees. This classification denies workers a suite of legal protections and benefits, a model that has been challenged globally.
The DOJ's Civil Rights Division, based in Washington D.C., is handling the case with support from federal prosecutors in the Northern District of California—a tech industry hub where Uber is headquartered in San Francisco.
Uber's Response and Legal Landscape
Uber stated in its filing that it is 'cooperating with the investigation'. The company has long defended its business model, arguing it provides flexibility for drivers while offering an affordable service to riders.
This federal investigation is not Uber's first legal challenge. The company has faced a slew of lawsuits and regulatory actions across the United States concerning driver pay, benefits, and safety. However, a 'pattern or practice' probe by the DOJ is notably more severe, indicating authorities believe discriminatory practices may be ingrained in the company's policies.
The outcome of this investigation could have profound implications not just for Uber, but for the entire gig economy, potentially forcing a fundamental restructuring of how companies engage with their workforce.
