Several companies have capitalized on technology, particularly the widespread use of smart phones, to connect consumers with services. For example, Uber essentially turns every vehicle owner into a cab driver by using its app to connect them to consumers needing rides. Similarly, Airbnb has allowed property owners to turn their homes into hotels by simply providing a link between them and tourists.
There’s a reason that Uber is valued at a ridiculous $50 billion. These companies are able to reap tremendous profits because (a) they don’t have to own the revenue source (i.e., the car or home) and (b) they are able to limit the number of “employees” that they utilize.
From the consumer’s standpoint, they provide greater access to services at a hefty discount from what they would otherwise pay. However, a recent horror story involving Airbnb provides a cautionary tale for using these services and raises questions about how far their liability should extend.
Airbnb Fails to Protect Traveler Needing Help
A 19 year old from Massachusetts travelled to Spain and stayed at an apartment in Madrid that was rented through Airbnb. In a horrific turn of events, his host allegedly locked him in the apartment, began rattling knives outside of the door, and refused to let him out unless he submitted to a sexual act.
He frantically contacted his mother for help. She then called Airbnb and told them what was going on, only to be told that they would not call the police and that she should contact the authorities directly.
She was unable to get in touch with anyone in the police department who could help her, but it was too late. According to her son, he submitted to the sexual act to get out, and eventually was set free.
Should Airbnb and Uber Be Held Liable?
Airbnb boasts that “your safety is our number one concern” and Uber similarly claims to be “committed to safely connecting riders and drivers.” But what happens when these companies fail to protect their customers? What happens when a situation like the incident in Spain occurs? Or if a similar situation were to happen to an Uber passenger?
Liability for Independent Contractor Negligence
As a general rule, companies are not responsible for the negligent acts of their independent contractors. This is not always the case, however, as companies can be liable if they exert operational control over the manner in which the “independent contractor” does his or her work.
Sometime in the near future that issue will undoubtedly be litigated with respect to Uber and Airbnb, but for now, it remains unclear whether they exert sufficient control be responsible for the torts of their drivers and hosts. That being said, for Uber at least, there has actually been precedent set that Uber’s drivers are employees.
Liability for Their Own Negligence
Putting these issues aside, a company can still be liable for its own negligent acts. For example, in the Spain scenario, had Airbnb contacted the authorities directly, perhaps the alleged incident would not have occurred.
Or, considering a similar hypothetical situation with Uber, if Uber were to hire a driver without conducting a background check and that driver gets into a car accident or otherwise harms a passenger, there would be an argument that they should be liable for that negligence.
These are just a handful of the liability questions raised by these relatively new companies. While as consumers we may applaud them for the services they provide, these risks can’t be ignored.
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If you’ve been involved in an accident, The Mahone Firm is here to help. Call (504) 564-7342 for a free case evaluation with a New Orleans personal injury attorney.
