Rideshare Drivers and Liability: When Are Uber and Lyft Responsible for Their Drivers’ Negligence?

The rideshare industry has revolutionized transportation across California. Every day, millions of riders rely on Uber and Lyft for safe, fast, and affordable travel. Yet, when accidents occur, the question of who is responsible can become confusing — and rideshare companies often try to distance themselves from accountability.

Uber and Lyft frequently claim that their drivers are “independent contractors” rather than employees, arguing that this shields them from liability for crashes caused by driver negligence. But under California law, that argument doesn’t always hold up.

At BD&J, PC, Attorney Michael Madadi and his experienced pre-litigation team have handled thousands of rideshare accident claims across the state. Their mission: to hold rideshare corporations accountable when unsafe policies, poor supervision, or negligent drivers harm innocent people.

The Independent Contractor Defense: What Uber and Lyft Claim

Uber and Lyft classify their drivers as independent contractors, not employees. This classification allows the companies to avoid paying benefits, payroll taxes, and — most importantly — legal liability for accidents.

In other words, when a rideshare driver causes a crash, Uber or Lyft may argue that:

• They are not directly responsible for the driver’s actions.
• The driver was operating independently and using their own vehicle.
• The company simply provides a “platform” for connecting drivers and passengers.

However, this defense has been challenged repeatedly in California courts and through legislation designed to protect workers and the public.

California’s AB5 and the ABC Test

In 2019, California passed Assembly Bill 5 (AB5), a law that redefined how companies classify workers. Under AB5, most workers — including rideshare drivers — are presumed to be employees unless the company can prove all three parts of the ABC test:

A. The worker is free from the company’s control in performing their duties.
B. The work performed is outside the company’s usual business.
C. The worker is engaged in an independent trade or occupation.

For Uber and Lyft, this test is difficult to satisfy. Driving passengers is the core business of both companies — not a separate trade.

Although Uber and Lyft lobbied for Proposition 22 (passed in 2020) to reclassify drivers as independent contractors, the law remains complex, and courts continue to evaluate whether the companies still share liability when accidents occur.

When Uber and Lyft Can Be Held Liable

Even with the independent contractor classification, Uber and Lyft can still be held responsible for accidents under several legal theories. These include:

1. Negligent Hiring or Retention

If a company fails to properly screen or remove unsafe drivers — such as those with a history of DUIs, reckless driving, or multiple complaints — it can be liable for negligent hiring or retention.

2. Negligent Supervision

Uber and Lyft have access to real-time driver data, GPS tracking, and trip histories. When they ignore red flags, such as repeated speeding incidents or unsafe driving patterns, they can be found negligent for failing to supervise.

3. Vicarious Liability

Even if drivers are labeled as contractors, courts may still find vicarious liability (respondeat superior) when the driver was performing tasks that directly benefited the company — such as transporting a passenger or responding to ride requests.

4. App or System Failures

Uber and Lyft may also be liable if accidents are caused by defective app design, unsafe navigation prompts, or poor user interface features that distract drivers.

Insurance Coverage in Rideshare Accidents

California law requires Uber and Lyft to maintain substantial insurance coverage for their drivers, but coverage depends on the driver’s status at the time of the crash:

• App off: Only the driver’s personal insurance applies.
• App on, no passenger: Limited rideshare coverage applies ($50,000 per person, $100,000 per accident, $25,000 property damage).
• Passenger accepted or in vehicle: Uber and Lyft provide up to $1 million in liability coverage and uninsured motorist protection.

However, disputes often arise when rideshare companies and insurers argue over which phase of the trip the driver was in. A skilled lawyer can use digital trip data to prove exactly when the company’s policy applies.

Common Causes of Rideshare Accidents

Rideshare drivers face unique challenges on California’s congested roads. Many crashes occur because of:

• Distracted driving: Constantly checking GPS or the rideshare app.
• Fatigue: Long hours and late-night shifts to meet income goals.
• Speeding or abrupt stops: Trying to complete more rides quickly.
• Unsafe pickups or drop-offs: Stopping in traffic lanes or crosswalks.
• Inexperience: Lack of professional driver training.

Each of these behaviors can lead to serious collisions — and under California law, rideshare companies can be held accountable when their policies contribute to unsafe driving conditions.

Proving Corporate Negligence in Rideshare Cases

To hold Uber or Lyft responsible, attorneys must demonstrate that the company’s actions (or inaction) directly contributed to the accident. BD&J, PC accomplishes this by:

• Obtaining driver background records and trip logs.
• Analyzing GPS and app data showing driver behavior.
• Reviewing internal communications and policy documents.
• Consulting with transportation safety experts and accident reconstruction specialists.
• Demonstrating how corporate practices — like unrealistic ride quotas or lack of driver oversight — caused or worsened the crash.

This evidence paints a clear picture of corporate negligence, forcing rideshare companies to take responsibility for their role in the accident.

Compensation for Rideshare Accident Victims

Victims of rideshare accidents in California may be entitled to compensation for:

• Medical expenses: Emergency care, rehabilitation, therapy, and ongoing treatment.
• Lost income and future earnings: For time missed from work or permanent disability.
• Pain and suffering: Physical pain and emotional trauma.
• Property damage: Repairs or replacement of personal belongings.
• Loss of enjoyment of life: When injuries impact daily activities.
• Punitive damages: In cases of egregious corporate misconduct.

BD&J, PC ensures that every category of loss is properly documented and aggressively pursued.

How BD&J, PC Protects Rideshare Accident Victims

Under the leadership of Attorney Michael Madadi, BD&J’s pre-litigation department handles rideshare cases with precision, urgency, and compassion. Their process includes:

Immediate case review and evidence preservation.

Coordination with medical experts to assess long-term care needs.

Analysis of corporate records and insurance data.

Strategic negotiation with Uber, Lyft, and multiple insurers.

Litigation readiness, ensuring cases are built strong from day one.

With over $1.5 billion recovered for clients, BD&J, PC has earned the trust of victims statewide who need results after devastating accidents.

Challenges Victims Face Without Legal Representation

Uber and Lyft have vast legal and financial resources. Without an experienced lawyer, victims may encounter:

• Confusing claims processes between corporate and personal insurers.
• Delays and denials designed to pressure quick settlements.
• Lowball offers that fail to account for long-term recovery needs.
• Corporate tactics that shift blame to the driver or passenger.

BD&J, PC’s team protects victims from these strategies by handling every communication, demand, and negotiation — allowing clients to focus on healing.

Why Time Is Critical in Rideshare Cases

Evidence such as GPS data, driver logs, and internal reports can be deleted or lost within weeks. California’s statute of limitations gives victims two years to file a personal injury claim, but early action is essential to preserve crucial digital evidence.

By contacting BD&J, PC immediately, victims ensure that their rights are protected and that Uber or Lyft cannot conceal vital information.

Holding Rideshare Companies Accountable

Rideshare companies have transformed modern transportation — but they must also be held accountable when their business models and policies put Californians in danger.

If you or a loved one has been injured in an Uber or Lyft accident, contact BD&J, PC today for a free consultation.
Let Attorney Michael Madadi and his dedicated team uncover the truth, prove negligence, and fight for the justice and compensation you deserve.