Uber and Lyft's user agreements contain mandatory arbitration clauses that can significantly affect your legal options after an accident. Understanding these provisions is essential before you can determine the best path forward for your claim.
What Arbitration Clauses Require
Both Uber and Lyft require users to agree to terms of service that include:
Mandatory binding arbitration: Disputes must be resolved through private arbitration rather than court litigation. An arbitrator, not a judge or jury, decides your case.
Class action waiver: You cannot join with other injured parties in a class action lawsuit. All claims must be pursued individually.
Limited appeal rights: Arbitration decisions are generally final with very limited grounds for appeal to courts.
Who Is Bound by These Clauses
Passengers who agreed to terms of service when creating their account or requesting rides are generally bound by arbitration requirements.
Drivers who signed up for the platform agreed to arbitration as part of their driver agreements.
Third parties—other motorists, pedestrians, cyclists—who never agreed to Uber or Lyft's terms are not bound and can pursue traditional court litigation.
Can You Still Sue?
Several factors determine whether you must arbitrate:
Read your agreement carefully: Terms change over time, and opt-out provisions may have been available when you signed up.
Specific claim types: Some agreements allow court claims for certain matters, such as small claims court for limited amounts.
Unconscionability arguments: Courts have occasionally found arbitration clauses unenforceable when they're excessively one-sided or buried in lengthy terms.
State law variations: Some states have laws affecting the enforceability of arbitration provisions in certain contexts.
Arbitration vs. Litigation
Understanding the differences helps you evaluate your options:
Arbitration advantages: Often faster than court litigation, less formal procedures, potentially lower costs for straightforward claims.
Arbitration disadvantages: Limited discovery rights, no jury trial, restricted appeal options, potentially less favorable for plaintiffs in complex cases, no public record or precedential value.
Litigation advantages: Full discovery rights, jury trial option, appellate review available, public proceedings, potential for precedent-setting decisions.
Strategies for Arbitration-Bound Claims
If you must arbitrate:
Select arbitrators carefully: The agreement may allow input on arbitrator selection.
Prepare thoroughly: Even though procedures are simpler, strong evidence and legal arguments matter.
Understand the rules: AAA or other arbitration organizations have procedural rules that govern the process.
Consider settlement: Many claims resolve through negotiation regardless of whether they would proceed in court or arbitration.
Getting Legal Advice
An experienced rideshare accident attorney can review your specific situation, determine whether arbitration applies, and advise on the best strategy for your claim. Don't assume you have no options because of arbitration clauses—many exceptions and workarounds exist.