Uber tries to resolve dispute with Kenyan drivers out of court

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Uber chose arbitration to resolve a dispute with drivers in Kenya over a fare reduction.

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The taxi company has applied to the Supreme Court of Kenya to allow it to resolve its problems with drivers through the channels agreed in the contracts, while stating that it would be “wrong” for its partners to seek legal protection without going through already established mechanisms. dispute resolution.

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This was in response to a lawsuit filed by a group of drivers and a local taxi firm against Uber in 2016 after the taxi company cut fares by nearly 50% to increase competition for taxi services. Bolt, its main rival in Kenya. The drivers said the act jeopardized their earnings and violated their contract, while Uber claimed they reserve the right to renegotiate their fees.

“Plaintiffs (drivers) filed an instant suit in complete disregard of the said Arbitration Clause, and it is highly inappropriate for plaintiffs to initiate immediate proceedings in violation of the agreements. If a dispute arose between the parties, then it should be referred to arbitration,” Uber’s lawyer said in a statement to the court on May 4.

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Uber’s legal team cited an agreement between the company and its drivers that includes an arbitration clause that states: “Any dispute, conflict or controversy, however arising out of or in connection with this agreement, including those relating to its validity, its interpretation or its enforceability must first be mandatory submitted in a mediation procedure in accordance with the ICC Mediation Rules.”

“If such dispute has not been resolved within sixty days of the filing of a request for mediation in accordance with such ICC Mediation Rules, such dispute may be submitted to and shall be subject to exclusive and final arbitration… The seat of arbitration shall be Amsterdam, the Netherlands. “, – it is said in part.

Uber’s statement follows a court ruling last year confirming the relationship between Uber Kenya Ltd and the Uber BV firms in the Netherlands, making them accountable to their partners and paving the way for legal action against the company. Uber Kenya has sought to distance itself from its parent company in order to avoid being held accountable for its actions in Kenya.

“The above arbitration agreement is in effect and enforceable. The second defendant (Uber BV) is ready to resolve the dispute through arbitration. The parties are contractually obligated to submit any disputes between them to arbitration in accordance with the agreement, and this respected court is ordered to hold the parties in their transaction, ”Uber said in a statement.


Credit: techcrunch.com /

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