Rideshare services such as Uber and Lyft have become key transportation options for many Americans who need a ride to the airport, have had too much to drink or don’t own a car. After ferrying passengers around for several years, Uber expanded by having its contractors deliver food to homes from various eating establishments. While nearly 60 million people in the United States utilize Uber’s services, probably very few can describe exactly what is declared in the company’s terms and conditions when you download their app. 

When a New Jersey couple, John and Georgia McGinty, suffered serious injuries in an accident while riding as passengers in an Uber vehicle, they filed a lawsuit against the company. However, Uber argued that the claims must be resolved through arbitration, citing the terms and conditions individuals must agree to in order to use the service.

The McGintys contended that it was their daughter, not them, who agreed to Uber’s terms. In fact, they said that the acceptance had nothing to do with ridesharing, but a food order that their daughter made through her cell phone. Accordingly, they claimed that they should not be bound by the mandatory arbitration provision. 

Despite this argument, the three-judge panel ruled in September that the arbitration provision was valid and enforceable, reversing a lower court’s ruling that had denied Uber’s motion to compel arbitration. The panel said that even if the agreement was executed by the McGintys’ minor daughter in an Uber Eats transaction, it could still be enforced in relation to their car accident. 

This case highlights the far-reaching impact of arbitration clauses in consumer agreements. By assenting to Uber’s terms and conditions—whether directly or indirectly through a family member—the McGintys waived their right to pursue their claims in court. Arbitration clauses are common in ride-hailing and delivery apps, and they often limit consumers’ ability to seek redress through traditional litigation.

Consumers should be aware that agreeing to an app’s terms and conditions often includes accepting binding arbitration as the forum for any legal dispute that arises. These clauses can significantly affect your legal rights, including your ability to file a lawsuit. If you’ve been injured in an accident involving a rideshare service, you should speak with an experienced attorney to discuss whether the arbitration clause can be challenged, as well as the best way to obtain the payment you deserve. 

Matthew R. Zatko, Attorney at Law represents people who have been hurt in all types of auto accidents, including cases where the victim was a passenger in a rideshare vehicle, taxi or bus. My firm is located in Somerset and serves clients throughout Indiana, Bedford, Cambria and Somerset counties. Please call 814-443-1631 or contact me online for a consultation.