Uber's Rapid Expansion and Growing Controversies

7/28/2015
Uber(company)Wikipedia,thefreeencyclopedia
Uber(company)
FromWikipedia,thefreeencyclopedia
UberTechnologiesInc.isanAmericaninternational
transportationnetworkcompanyheadquarteredinSan
Francisco,California.Thecompanydevelops,
marketsandoperatestheUbermobileapp,which
allowsconsumerswithsmartphonestosubmitatrip
requestwhichisthenroutedtoUberdriverswhouse
theirowncars.[1][2]By28May,2015,theservicewas
availablein58countriesand300cities
worldwide.[3][4]SinceUber'slaunch,severalother
companieshavecopieditsbusinessmodel,atrend
thathascometobereferredtoas"Uberification".[5][6]
Uberwasfoundedas"UberCab"byTravisKalanick
andGarrettCampin2009andtheappwasreleased
thefollowingJune.Beginningin2012,Uber
expandedinternationally.In2014,itexperimented
withcarpoolingfeaturesandmadeotherupdates.By
mid2015,Uberwasestimatedtobeworth$50B.[7]It
isestimatedthatUberwillgenerate$10billionin
revenuebytheendof2015.[8]
Uber,Inc.
Uber'slogo
Type
Private
Industry
Transport
Founded
March2009
Founders
TravisKalanick,GarrettCamp
Headquarters SanFrancisco,California,United
States
Areaserved
Worldwide
Keypeople
TravisKalanick (CEO)
Services
Taxi,vehiclesforhire
Slogan
Wherelifestylemeetslogistics
Website
www.uber.com
(https://www.uber.com/)
ThelegalityofUberhasbeenchallengedbygovernmentsandtaxicompanies,whoallegethatitsuseof
driverswhoarenotlicensedtodrivetaxicabsisunsafeandillegal.
Contents
1Corporatehistory
1.1Earlyhistory
1.2Expansion
1.3Additionalfunding
1.4Recenthistory
2Uberappsoftwareandservices
2.1Pricingandpayments
2.2Surgepricing
2.3Ratingscore
2.4Reception
2.5UberPopandUberPoolinParis
2.6Developmenthistory
2.7Productexpansion
3Marketing
4Opposition
4.1Criticismandcontroversialissues
4.1.1Lawsuitsbyprivateentities
4.1.1.1NationalFederationoftheBlindlawsuit
4.1.2Protests
4.1.3Sabotageagainstcompetitors
4.1.3.1OperationSLOG
https://en.wikipedia.org/wiki/Uber_(company)
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4.1.3.1OperationSLOG
4.1.4Contractors,oremployees?
4.1.5Threateningjournalists
4.1.6Userprivacy
4.1.7Safety
5Seealso
6References
7Externallinks
Corporatehistory
Earlyhistory
UberwasfoundedbyGarrettCamp,thefounderof
StumbleUpon,andTravisKalanickin2009.[9][10]Thecompany
received$200,000inseedfundingthatsameyear.[11]In2010,
Uberraised$1.25millioninadditionalfunding.[11]
Followingabetalaunchinthesummerof2010,Uber'sservices
andmobileappofficiallylaunchedinSanFranciscoin
2011.[12][13]Initially,RyanGraveswasappointedasCEO,
however,Kalanickreplacedhimintherolelaterthatyear.[12][14]
Gravessteppeddowntobecomethecompany'sCOO.[15]
TravisKalanick,cofounderandCEO
ofUber,in2013
Bytheendof2011,Uberhadraised$44.5millionin
funding.[16][17]Thatyear,thecompanychangeditsnamefrom
UberCabtoUber.[18]
Expansion
Thecompanyexpandedintoanewcityeachmonthstartingin
May2011,includingNewYorkCity,ChicagoandWashington,
GarrettCamp,cofounderofUber,in
D.C.[16][17]TheUberapp'scoverageexpandedtoParisin
2009
December2011.[16]InMay2012,Uberlaunchedabetatestin
Philadelphia,followedbyanofficiallaunchinthecitythat
June.[19]Uberexpandedrapidlyintooverseasmarketsin2012and2013.[20]
PariswasthefirstcityoutsideoftheU.S.whereUber'sservicebeganoperatinginDecember2011prior
totheinternationalLeWebInternetconference.[21]In2012itlauncheditsservicesinToronto,
Canada,[20]a90driverlaunchinLondon,[22]aSydney,AustralialaunchinNovember2012,[23]anda
softlaunchinSingaporeinJanuary2013.[24]SydneywasUber'sfirstlaunchintheAsiaPacific
region.[25]ConsumersinJohannesburg,SouthAfrica,wereabletouseUberafteritwaslaunchedin
September2013.UberwasthenstartedinCapeTownonOctober10,2013,afterasixweek"testing
phase".[26][27]
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InAugust,thecompanybeganofferingitsrideservicesinSeoul.[28]InJune2014,Uberlaunchedits
servicesinTijuana,Mexico.[29]
InJune2014,Uberannouncedthatithadraised$1.2billioninfunding,[30]anditpublicizedan$18.2
billionvaluation.[31]Insummer2014,Uberannouncedithadraised$1.5billioninventurecapital.[32]
FollowingasoftlaunchoftheUberappintheSanlitunshoppingdistrictinMarch2014,anofficial
launchwasheldinBeijing,China,inmidJuly2014.Thecompany'sserviceoperatesinChinasfour
largestcities.[33]InJuly2014UberannouncedanationwiderolloutofUberXinIndia.Inadditiontoa
Bangalorepresence,Uber'sinauguralIndianlocationthatwaspublicizedinAugust2013,driversin
Delhi,Hyderabad,Chennai,MumbaiandPunemadeUberXavailabletousersinthosecities[34]
AlthoughtheMetropolitanGovernmentofSeoulstatedinmid2014thatitwouldseektobanUberfrom
operatinginitsjurisdiction,whilealsodevelopingitsownUberlikeappforregisteredtaxistobe
launchedinDecember2014,[35]UberintroduceditsUberXserviceinthecityattheendofAugust2014.
AccordingtotheWallStreetJournal,UberXusesa"forpayridesharescheme"and"tripscostlessthan
thesamejourneyinanordinarytaxi".Atthetimeofthelaunch,anUberrepresentativebasedinSeoul
saidthatachargewillnotapplytoridesinSeouluntilfurthernotice.[36]
ThecompanylaunchedblackcarservicesinWarsaw,Poland[37]anduberXservicesinSeoul.[28]Uber
alsobeganitsservicesinAnchorage,AlaskainSeptember,2014.[38]
DriversinWarsawbeganusingtheUberapponAugust18,2014.[39]Theservicewaslaunchedin
MontrealinOctober2014.[40]TheservicewasintroducedinDenmarkinNovember2014,butonlythe
UberBlackwasavailableinthecapitalcityofCopenhagen,whileUberPOPwasscheduledtobeadded
atalaterstage.[41]OnNovember28,2014,Thailand'sDepartmentofLandTransportdeclaredUber's
continuedoperationwithinThailandillegal.[42]
UberunveiledIcePrinceZamaniastheRiderZeroinLagos,NigeriainJuly2014,signifyingitslaunch
inthelargestcityinAfricaandmostpopulouscountryinAfrica.[43]
UberlauncheditsserviceinNairobi,Kenya,onJanuary21,2015.NairobiwasUber'sfirstcityinKenya
andintheEastAfricanregion.[44]OnthesamedayastheNairobilaunch,UberraisedUS$1.6billionin
convertibledebtfromwealthmanagementclientsofGoldmanSachsGroupInc.[45]
Additionalfunding
OnDecember12,2014,TechCrunchreportedthattheChinesesearchengineBaidu,themainland's
largest,isexpectedtomakeasignificantinvestmentinUber.[46]Thedeal,thedetailsofwhichwerenot
sharedwiththemedia,wasconfirmedonDecember17,2014,followingaBeijingmeetinginvolving
KalanickandBaiduchiefexecutiveandchairmanRobinLee,whomadeacommitmenttoconnectthe
searchengine'smapandmobilesearchfeatureswithUbersapp.Atthetimeofthearrangement,Uber
existedineightChinesemainlandcities.Kalanicktoldthemediaafterwardofanabsenceof"pressing
regulatoryissues"forUberinChina.[47]InMay2015,Uberrevealedplanstoraisebetween$1.5billion
and$2billioninnewfunding,raisingthevalueofthecompanyto$50billionorhigher.[48]
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GoogleVenturesinvested$258millionin2013.[49]TheChinesesearchengineBaidumadean
investmentinUberinDecember2014inadealthatalsoinvolvedconnectingUberwithBaidu's
mappingapps.[46][50]
Recenthistory
AsUbergrewinternationally,italsobegantoexperiencedisputeswithgovernmentsandtaxicompanies
inthoseregions.InApril2014,UberwasbannedbythegovernmentinBerlin,althoughthecompany
remainsactiveinotherGermancities.ThebanisstillbeingdiscussedasofDecember2014.[51]Taxi
driversinLondon,Berlin,ParisandMadridstagedalargescaleprotestagainstUberonJune11,
2014.[52]
AlsoinFebruary2015,UberannouncedacollaborationwithCarnegieMellontofoundtheUber
AdvancedTechnologyCenter,anewfacilityinPittsburghmeanttosupportresearchinthedevelopment
ofselfdrivingvehicles.[53]Additionally,UberexpandeditsUberPOOLservicestoLosAngelesand
NewYorkCity,[54]expandingfurtherinMarch,toofferUberPOOLinAustin,Texas,inanticipationof
theSouthbySouthwestfestival.[55]InApril2015,UberrenameditsUberFRESHprogramas
UberEATS[56]andexpandedtheservicetoincludeBarcelona,LosAngeles,ChicagoandNewYork
City.[57][58]
Thefollowingmonth,UberlauncheditsUberMilitaryFamiliesCoalition,anewprojecttosupportits
existingUberMilitaryinitiative.[59]TheprojectseekstopartnerUberwithexistingmilitaryfamily
organizationsandhiremoremilitarydependents,inadditiontoveterans,asdrivers.[59]AlsoinMay
2015,Uberupdateditsapptoincludeaccommodationsfordriverswhoaredeaforhardofhearing.[60]
Uberappsoftwareandservices
TheUberappsoftwarerequiresasmartphone.
Pricingandpayments
Uber'spricingissimilartothatofmeteredtaxis,althoughall
hiringandpaymentishandledexclusivelythroughUberandnot
withthedriverpersonally.Insomecities,iftheUbercaris
travellingataspeedgreaterthan11mph(18km/h),thepriceis
calculatedonadistancebasis,otherwise,thepriceiscalculated
onatimebasis.[61]Attheendofaride,thecompletefareis
automaticallybilledtothecustomer'screditcard.[62]Uberhas
saiditspricesarethepremiumthatthecustomerspayforacab
servicethatisnotonlyreliable,butalsopunctualand
comfortable.[63][64][65]
AnUberrideinBogot,Colombia.
Visibleonthedashboardisaphone
runningtheUberapp.
On12May2015,UberstartedtestingcashpaymentsinIndia.ThepilotprojectwasstartedintheIndian
cityHyderabad.[66]
Surgepricing
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Uberusesanautomatedalgorithmtoincreasepricesto"surge"pricelevels,respondingrapidlyto
changesofsupplyanddemandinthemarket,andtoattractmoredriversduringtimesofincreasedrider
demand,butalsotoreducedemand.[67][68]CustomersreceivenoticewhenmakinganUberreservation
thatpriceshaveincreased.[67]ThecompanyappliedforaU.S.patentonsurgepricingin2013.[69][70]
Thepracticehasoftencausedpassengerstobecomeupsetandinvitedcriticismwhenithashappenedas
aresultofholidays,inclementweather,ornaturaldisasters.[71]DuringNewYear'sEve2011,prices
wereashighasseventimesnormalrates,causingoutrage.[72]Duringthe2014Sydneyhostagecrisis,
Uberimplementedsurgepricing,resultinginfaresofuptofourtimesnormalchargeswhileitdefended
thesurgepricingatfirst,itlaterapologizedandrefundedthesurcharges.[73]UberCEOTravisKalanick
hasrespondedtocriticismbysaying:"...becausethisissonew,it'sgoingtotakesometimeforfolksto
acceptit.There's70yearsofconditioningaroundthefixedpriceoftaxis."[72][74]
Ratingscore
Usersoftheappmayratedriversinturn,driversmayrateusers.Alowratingmightdiminishthe
availabilityandconvenienceoftheservicetotheuser.[75]
Reception
UberfacescompetitionfromlowercostrealtimeridesharingstartupssuchasLyft,Sidecar,OlaCabs
andHaxi.Tocompeteatlowerpricelevels,UberintroducedUberGoonNov19,2014,[76]UberTaxi
(partnershipswithlocaltaxicommissions)andUberX(nonluxurycarssuchasToyotaPrius
hybrids).[77]ThismoveledtodissatisfactionamongexistingUberlimodriverswhosawtheirearnings
decrease.[78]
In2011MarcAndreessenexpressedinterestininvestinginUber.HetoldCNET,"Uberissoftwareeats
taxis.[...]It'sakillerexperience.Youwatchthecaronthemaponyourphoneasitmakesitswayto
you."[79]Thesameyear,theNewYorkTimescalledUber"cleverbutcostly",notingthecarsare
"particularlynicebyliverystandards"andpickuptimeswereslowcomparedwithtraditionalNewYork
Citytaxisandblackcars.[63]
In2013USATodaynamedUberitstechcompanyoftheyear.[80]
However,ithasalsogottennegativereception.InOctober2014,Uberreceivedan"F"ratingfromthe
BetterBusinessBureau(BBB),whichcitedcomplaintsoverunexpectedlyhighcharges.[81][82]
UberPopandUberPoolinParis
Inthefirsthalfof2014,theUberPopversionoftheappwaslaunchedinParis,France,wherebyusers
arelinkedtodriverswithoutprofessionaltaxiorchauffeurlicenses,whileUbercoverssupplemental
insurance.UberPopwasexpandedtootherEuropeancitiesoverthecourseoftheyear.[83]
TheUberPoolservicewasthenintroducedtotheParisianmarketinNovember2014,amonthaftera
Frenchcourthaddeemedthecompany'sUberPopservicetobeillegal.UberclaimedthatUberPoolwas
thenextiterationoftheUberPopconcept.Uber'sWesternEuropechieftoldreportersatthetimethatit
was"veryconfident"aboutoverturningthecourtdecision.[83]AtthestartofFebruary2015,the
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UberPoolservicewasstilloperationalinParis,France,despitetheregulatoryoppositioninthat
country.[84]OnJuly5,2015,UbersuspendedUberpopinthefaceofpressurebytheFrenchgovernment
whileawaitingaconstitutionalcourtdecisiononthelegalityofUber'sservice.[85]
Developmenthistory
DuringtheinitialdevelopmentoftheUberapp,thecompanycreatedathinktankconsistingofanuclear
physicist,acomputationalneurosurgeon,andamachineryexpertwhoworkedonpredictingdemandfor
privatehirecardriversandwheredemandishighest.[9][86]Laterin2012,UberlauncheditsUberGarage
initiativeinChicago.TheexperimentalprogramallowedUbertopartnerwithlocaltaxicabdrivers,
alertingthemwhenanappuserrequestedaride.[18][87]ThecompanyalsointroduceduberXin2012,a
serviceoptionwhichallowslocaldriverstorespondtonotificationsontheUberappbydriving
customersintheirownnonluxurycars.[88]During2013,Uberoffereditsfirstnoncaroptionwhenit
launchedUBERChopperridesfromNewYorkCitytotheHamptonsfor$3000each.[89]
InAugust2014,UberlaunchedUberPOOL,acarpoolingservice,inSanFranciscoandUberFRESH,a
lunchdeliveryservice,inSantaMonica.[90][91]
UberCEOTravisKalanickhasspokenabouthisdesiretoeventuallymovetousingselfdrivingcarsfor
Ubervehicles.[92]ByMay2015thecompanyhadhiredalargenumberofCMUresearchersfromthe
vehicleautonomydepartment,toworkatUber'sAdvancedTechnologiesCenterinPittsburgh.[93]
Productexpansion
In2014,thecompanyexperimentedwithonlinefoodorders,pilottestinguberFRESHinSantaMonica,
California.[94]InApril2014,UberannouncedacourierpackagedeliveryservicecalledUberRush,with
pickupfromanywhereinManhattan.[95]WhileRushonlyoffersdelivery,[96]theUberEssentialsor
CornerStoreservice,startingtestinginWashingtonD.C.inAugust2014,allowsonlineorderingfroma
listofabout100items.[97][98]InApril2012,UberlaunchedtheUberGarageinitiative,aprojectto
experimentwithotherideasforurbantransportationservices.ThefirstprojectfromUberGaragewasto
giveUberuserstheoptiontohirearegulartaxidriver,oracrowdsourcedUberdriver.[99]
ThestartupannouncedanewcarpoolingservicecalledUberPoolatthestartofAugust2014,afterabeta
testingphaseintheSanFranciscoBayArea.UberPoolmatchesriderswithanotherriderwhois
travelinginthesamedirectiontheappwillsharethefirstnameoftheotherriderandwhoisgetting
pickedupfirst.Ifamatchcannotbefound,ridersareofferedadiscountonaregularUbertrip.[100][101]
InDecember2014,UberexpandedtheUberPoolconcepttoNewYorkCity.TheUberblog
announcementofferedridersthepossibilityofreducingtheirjourneycostsby20to50percent,
explaining:"Onanygivenday,thevastmajorityofUberXtripsinNYChavea'lookalike'tripatrip
thatstartsnear,endsnear,andishappeningaroundthesametimeasanothertrip".[102]
InJune2015,inIstanbul,UberlaunchedawatertaxiservicecalledUberBOAT,allowinguserstotravel
byBeneteauboatsacrossthecityscentralBosporusstrait.[103]
Marketing
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InJuly2012,inhonorofNationalIceCreamMonth,Uberlaunchedan"UberIceCream"programin
theU.S.sothatusersinsevencitiescouldsummonanicecreamtruckforondemanddelivery,while
purchaseswerebilledtousers'accounts.[104]
InJuly2014,UberpartneredwithBladetooffer"UberCHOPPER"helicopterridesfromNewYorkCity
totheHamptonsforUS$3,000,[105][106]includingavailabilityduringtheJuly4holidayweekend.[107]
Shorttermpromotionsinthesecondhalfof2013included:the
Septemberhireoficecreamtruckstodelivericecream[108]
ridesintheDeLoreanDMC12carfromtheBacktotheFuture
filmfranchise,thatwerealsolaunchedinSeptember[109]an
OctoberNationalCatDaypromotionforwhichUberdrivers
deliveredkittens[110]andaChristmastreedeliveryservice.[111]
InMarch2015,Uberofferedluxurycarrentalservicein
collaborationwithDreamDriveinSingaporeuntil20May
2015.[112]
DeLorean"timemachine"provided
byUber
OnSeptember4,2013,Uberannounceditsfirstsportsdeal.The
companyheldapromotionwiththeNFLPlayersAssociationtopromotesaferidesforNFLplayers.[113]
InJanuary2015,UberannouncedamarketingprogramKalanickcalled"principledconfrontation"that
includedreachingcompromiseswithlocalmunicipalitiestocompromiseonnewtaxregulations.Since
implementingthisprogram,Uberhasseen17newcitiespassproUberordinances.[114]Uberhadworked
outanarrangementwiththecityofBostontosharequarterlydataontheduration,locations,andtimes
ofdayinwhichridersusedtheapptotravelinoroutofthecity.Thisinformationwasfirstdeliveredto
thecityinFebruary2015,andthereportkeptallindividualuserdataprivate.[115]
OnMarch10,2015TravisKalanick,Ubersfounderandchiefexecutiveannouncedapartnership
betweenUberandtheUNWomen.TheyhadintendedtoinvestinlocalcommunitieswheretheUN
Womensgroupwaslocatedhopingtocreate1,000,000jobsforwomengloballyby2020.However,
afterpressurefromtradeunionsandwomen'srightsorganizations,UNWomendeclinedtoparticipate,
citingUber'slegalstatus,safety,andprivacyconcerns.[116]
Opposition
Uberisthesubjectofongoingprotestsandlegalactionfromtaxidrivers,taxicompanies,and
governmentsaroundtheworldwhoaretryingtostopUberfromoperatingintheirareas.Thesegroups
saythatUberpresentsunfaircompetitiontotaxisbecausethecompanydoesnotpaytaxesorlicensing
feesthatitendangerspassengersthatdriversareuntrained,unlicensedanduninsuredingeneral,that
thecompanybreaksthelaw.
Uber,whichisledbyDavidPlouffe,anexperiencedpoliticaloperative,expandsitsoperationsthough
commencingoperation,thenengaginginapoliticalcampaignwhichmobilizespublicsupportforthe
service.If,asisusuallythecase,itsmodeofdoingbusinessdoesnotconformtolocalregulationsand
laws,Uber,supportedbyanumerouslobbyists,mountsacampaigntotrytochangethesituation.[117]
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Asofmid2015,protestshadbeenstagedinGermany,India,Spain,France,Italy,ChinaandEngland,
amongothernations,anddangerousincidentsinvolvingpassengershavebeendocumented.[118][119]
UberexecutiveswerearrestedinFranceinJune2015.InDecember2014,UberwasbannedinSpain
andintwocitiesinIndia.Ubercontinuestobeinvolvedindisputeswithseveralgovernmentalbodies,
includinglocalgovernmentsintheU.S.andAustralia.
GovernmentshavebeenlargelyunabletostopUber'soperationsintheirjurisdictionsbecauseits
operationsareconductedprimarilyovertheInternet.Inaddition,Uberissaidtouseextremely
aggressivetacticssuchasbullyingandhiringinvestigatorsto"digupdirt"onjournalistswhocriticize
them.[120]Portland,Oregon'stransportationcommissionercalledUbermanagement"abunchof
thugs".[121]AcommissionerinVirginiawhoopposedUberwasfloodedwithemailsandcallsafterUber
distributedhispersonalcontactinformationtoallofitsusersinthestate.[122]
Criticismandcontroversialissues
Lawsuitsbyprivateentities
InDecember2013,anUberdriverranoverandkilledasixyearoldgirlinSanFrancisco,severely
injuringhermotherandbrotherinthesameincident.Thedriverwasnotcarryingapassenger,butthe
girl'sfamilyfiledawrongfuldeathclaimagainstUber,claimingthedriverwasusingUber'smobile
applicationatthetime.[123][124][125]
InSeptember2014,aclassactionwasfiledbyAtlanta,GeorgiataxicabdriversandCPNCholdersasthe
plaintiffclass,againstUberTechnologies,Inc.,itssubsidiaryRaiserLLC(whichoperatesUberX),and
inararemove,allofbothcompanies'driversasadefendantclassintheSuperiorCourtofFulton
County,Georgia,forrestitutionofallmeteredfarescollectedviatheUberandUberXappsfortrips
originatingwithintheAtlantacitylimits.[126]
InDecember2014,CheckerCabPhiladelphiaand44othertaxicompaniesinPhiladelphia,Pennsylvania
filedalawsuitintheFederalCourtoftheEasternDistrictofPennsylvania,allegingthatUberwas
operatingillegallyinthecity.[127]
In2015,aDelhiwomanwhoclaimstohavebeenrapedbyUberdriverShivKumarYadavinhercityis
suingthecompanyfornegligenceinUScourts.[128]
InMay2015,theMilanCourtbannedUberpopalleging"unfaircompetition"andviolationofthelocal
jurisdictionregulatingtaxiservices.ThelawsuitwasoriginallyinitiatedbytheItaliantaxidrivers
union.[129]
InJuly2015,a$400MclassactionlawsuitwasfiledagainstUberXandUberXLinToronto,Canadaon
behalfofOntariotaxiandlimodrivers,brokersandowners.ThestatementofclaimallegedthatUberX
andUberXLviolatedsection39.1oftheprovincesHighwayTrafficActbyhavingunlicenseddrivers
pickinguppassengersandtransportingthemforcompensation.[130]
NationalFederationoftheBlindlawsuit
AlawsuitwasfiledintheU.S.stateofCaliforniaonSeptember9,2014bythestatechapterofthe
NationalFederationoftheBlind,inresponsetothereporteddenialofservicesto"morethan30"blind
customersthelawsuitclaimedthattheconductwasinviolationoftheAmericanswithDisabilitiesAct
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of1990andCaliforniastatelaw.TheWashingtonPostpublishedadirectquotefromthecomplaint,in
whichtheFederationclaimsthatitsconstituency"facethedegradingexperienceofbeingdeniedabasic
servicethatisavailabletoallotherpayingcustomers."TwocasesweredescribedinthePostarticle:
First,aCaliforniaUberXdriverallegedlystoredaservicedoginthetrunkofhisvehicleandrefusedto
acknowledgetheblindpassenger'sconcernuponthelatter'srealizationofwhathadoccurredsecond,a
driverallegedlycursedatablindpassengerduringaverbalexchange,inwhichthelatterwasexplaining
thenatureoftheguidedog.Accordingtothecomplaint,thedriversuddenlyaccelerated,andnearly
injuredthedog,whilealsostrikingthepassengersblindfriendwithanopencardoor.[131]
Uberrespondedtoanumberofblindpassengerswhoreportedtheirexperiences,statingthatsinceUber
driverswereindependentcontractors,thecompanywasunabletooverseetheirconduct.TheFederation
repliedinapublicstatementthatUbercloselymonitoreditsdrivers'workpracticesthroughtheUber
app,thatUberadvisedblindpassengerstonotifydriversabouttheirguideanimalsinadvance,andthat
theFederationwasproceedingwiththefilingofthelawsuitafterUberrefusedtoenterintoanegotiation
withthemtoresolvetheissue.[131]
Protests
OnJanuary13,2014,cabdriversinParisattackedanUber
driver'scarnearCharlesdeGaulleAirport,protesting
competitionfromthetransportationstartup.[132]OnJune11,
2014,inaconcertedaction,taxisblockedroadsinmajor
Europeancitiesinprotestagainstwhattheyperceiveasathreat
totheirlivelihoodsfromcompaniessuchasUber.Thecabbies
contendedthatUberandsimilarsmartphoneappbasedservices
haveanunfairadvantagebecausetheyarenotsubjecttothe
samekindsoffeesandregulationsplacedontaxis.[133][134]
AprotestagainstUberinPortland,
OregoninJanuary2015
OnJune25,2015,cabdriversinParis"lockeddown"Parisinan
antiUberprotest.[135]MusicianCourtneyLovegotcaughtintheprotestandlivetweetedasherUber
cabwasviolentlyattackedandsheandherdriverwereheldhostage.[136]
OnJuly24,2015athousandtaxidriversinRiodeJaneiroblockedtrafficduringthemorningrushhour
protestingUber'sexpansionthere.(LawmakershavevotedtobanUberinSoPauloandBrasilia.).[137]
Sabotageagainstcompetitors
UberissuedanapologyonJanuary24,2014,afterdocumentswereleakedtotheValleywagand
TechCrunchpublicationssayingthat,earlierinthemonth,UberemployeesinNewYorkCity
deliberatelyorderedridesfromGett,anewlyestablishedcompetitor,onlytocancelthemlater.The
purposeofthefakeorderswastwofold:wastingdrivers'timetoobstructlegitimatecustomersfrom
securingacar,andofferingdriversincentivesincludingcashtojoinUber.[138]Uberapologizedin
astatementonitswebsite.[139]
InAugust2014,Lyft,anotherridesharingservice,reportedtoCNNMoneythat177Uberemployeeshad
orderedandcancelledapproximately5,560ridessinceOctober2013,andthatithadfoundlinkstoUber
recruitersbycrossreferencingthephonenumbersinvolved.TheCNNMoneyreportidentifiedoneLyft
passengerwhocanceled300ridesfromMay26toJune10,2014,andwhowasidentifiedasanUber
recruiterbysevendifferentLyftdrivers.Onthisoccasion,Uberdidnotissueanapology,butsuggested
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inastatementonitswebsitethattherecruitmentattemptswerepossiblyindependentpartiestryingto
makemoney.[140][141]ALyftspokespersonstatedtoCNNMoney:"It'sunfortunateforaffected
communitymembersthattheyhaveusedthesetactics,asitwastesadriver'stimeandimpactsthenext
passengerwaitingforthatdriver."[140]
Followingaseriesof2014mediaarticles,inwhichseveralallegationssurfacedthatUberemployed
aggressivebusinesspractices,thenewswebsiteSalonpublicationpublishedanarticleonAugust31,
2014bystaffwriterAndrewLeonard,titled"WhyUbermustbestopped."LeonarddescribedUberas
"theclosestthingwevegottodaytotheliving,breathingessenceofunrestrainedcapitalism,"and
warnedoftheharmsthatwilloccurifthecompanyachievesa"dominantmarketpositionineverymajor
cityontheglobe."[142]
OperationSLOG
InAugust2014,theonlinepublicationTheVergereportedthatasecretUberproject,called"Operation
SLOG"whichrecruitsmemberswiththeassistanceofTargetCW,aSanDiego,Californiabased
employmentagencyappearedtobeanextensionofthecompany'sactivitiesinrelationtoLyft.As
reported,onJuly9,2014followingLyft'sexpansionintoNewYorkCity,Ubersentanemailoffering
whatitcalleda"hugecommissionopportunity"toseveralcontractorsbasedonthe"personalhustle"of
theparticipants.[143]ThosewhorespondedmetwithUbermarketingmanagerswhoattempted,according
tooneofthecontractors,tocreatea"streetteam"togatherintelligenceaboutLyftslaunchplansand
recruittheirdriverstoUber.RecruitsweregiventwoUberbrandediPhones(oneabackup,incasethe
personwasidentifiedbyLyft)andaseriesofvalidcreditcardnumberstocreatedummyLyft
accounts.[143]Afterbeingcontactedforcomment,TargetCWwarneditscontractorsagainsttalkingto
themedia,statingthatitrepresentedaviolationofanondisclosureagreementtheysigned.[143]
Contractors,oremployees?
Ubercontractswiththeirdriverpartnersunderlegalarrangementsascontractors,andnotemployees.
Sincetaxation,workhours,overtimebenefits,andsoforthmaybetreateddifferentlybyvariouspolitical
jurisdictionsglobally,thisdesignationhasbeencontroversial.[144]
IntheUnitedStates,theFederalgovernmentlaboragencyissuedguidelinesinJuly2015todealwith,
whatitconsiders,"misclassification"ofworkers.Itarguesthatany"workerwhois'economically
dependent'ontheemployershouldbetreatedasanemployee.Bycontrast,aworkermustbeinbusiness
forhimselforherselftobeanindependentcontractor."[145]Theguidelineisnonbinding,butisexpected
tohavesomeinfluenceinvariouscourtcaseswhichmayestablishnewcommonlawaroundthe
issue.[145][146]
Threateningjournalists
AtaprivatedinnerinNovember2014,EmilMichael,seniorvicepresidentofUber,suggestedthatUber
hireateamofoppositionresearchersandjournalists,withamilliondollarbudget,todigintothe
personallivesandbackgroundsofmediafigureswhoreportednegativelyaboutUber.Specifically,he
targetedSarahLacy,editorofthetechnologywebsitePandoDaily,whohasaccusedUberofsexismand
misogyny.[147]ThecontroversymadenationalnewsandstirredcriticismagainstUber."Thecomments,
reportedlymadebyseniorvicepresidentforbusinessEmilMichaelataNewYorkdinnerattendedby
10/20
7/28/2015
BuzzFeededitorinchiefBenSmith,"wroteaWashingtonPostcolumnist,"ignitedapowderkegof
criticismaboutacompanyalreadyperceivedascutthroatlandingUberonthefrontpagesofThe
WashingtonPost,USATodayandtheNewYorkTimes."[148]
Michaelissuedapublicapology.[149]Later,hesentanemailtoLacy:"Iwasataneventandwas
venting,butwhatIsaidwasneverintendedtodescribeactionsthatwouldeverbeundertakenbymeor
mycompanytowardyouoranyoneelse.IwasdefinitivelywrongandIfeelterribleaboutanydistressI
havecausedyou."[150]
SpeakingwiththeAustralianmediapublicationTheConversationonNovember20,2014,EuropeanPR
agencyFINNpartnerRafWeverberghsaidthatUberdoesnotrealizeexactlyhowupsetjournalistsare
inthewakeoftheMichaelincident.Onthesamedate,thepublicationreportedthatmorejournalists
deletedtheirUberapps.Uber'sBrisbanespokespersonstatedthatjournalistswillnotbeinvestigatedby
thecompanyintheAustralianstateofQueensland,inlightofthelegislativedifficultiesthatwere
occurringatthetime.[151]
Userprivacy
Kalanickreceivedaletter,datedNovember19,2014,fromSenatorAlFranken,ChairmanoftheUnited
StatesSenateJudiciarySubcommitteeonPrivacy,TechnologyandtheLaw,overuserprivacy.In
additiontoalistof10questions,Frankenstatedthatthecompanyhada"troublingdisregardfor
customerprivacy"andthathewas"especiallytroubledbecausethereappearstobeevidenceofpractices
inconsistentwiththepolicy[Uberspokesperson]Ms.Hourajianarticulated"andthat"itappearsthaton
prioroccasionsyourcompany[Uber]hascondoneduseofcustomersdataforquestionablepurposes."
FrankenconcludedhisletterbyaskingforaresponsebyDecember15,2014.[152]
Concernshavebeenraisedaboutinternalmisuseofthecompany'sdata,inparticulartheabilityofUber
stafftotrackthemovementsofitscustomers,knownas"GodMode".Inadditiontotheaforementioned
useoftheservicetotrackjournalistsandpoliticians,aventurecapitalistdisclosedin2011thatUber
staffwereusingthefunctionrecreationallyandviewedbeingtrackedbyUberasapositivereflectionon
thesubject'scharacter.[153]AnindividualwhohadinterviewedforajobatUbersaidthathewasgiven
unrestrictedaccesstoUber'scustomertrackingfunctionaspartoftheinterviewprocess,andthathe
retainedthataccessforseveralhoursaftertheinterviewended.[154]
OnFebruary27,2015,Uberadmittedthatithadsufferedadatabreachmorethanninemonthsbefore.
Drivernamesandlicenseplateinformationonapproximately50,000driverswereinadvertently
disclosed.[155]UberdiscoveredthisleakinSeptember2014butwaitedmorethanfivemonthstonotify
thepeopleaffected.[156]
Safety
OnAugust4,2014,thecompanyannouncedthescheduledremovalofadriverfromtheservicepending
amedicalreview,afterthedriversufferedanepilepticseizurewhiledrivingthatresultedinanaccident
withapedestrianinSanFrancisco.The56yearolddriverwashospitalizedafterhittingthreeparked
carsandthenamanonthesidewalkanUberspokespersonsaidintheannouncementthatthedriver
"hasanoutstandingrecordofserviceandsafetywithnopriorincidents."[157]
11/20
7/28/2015
InDecember2014,theNewYorkTimesreportedonconcernsregardingthemannerinwhichtheUber's
appnotifiesdriversaboutnewrequestsforpickupfromcustomers.[158]Whenacustomermakesa
request,driversarenotifiedonanofficialUbermobileappandprovidedinformationaboutwherethe
customeris.Inordertoaccepttherequest,thedriverhasapproximately15secondstotaptheirphoneto
accepttherequest.[159]AnUberdriverreportedthatdriverscanbetemporarilysuspendedforignoring
theserequests.[158]DeborahHersmanoftheNationalTransportationSafetyBoardcriticizedthe15
secondsystem,sayingthatitpresentsasignificantdistractiontodrivers,asdriversarefinancially
motivatedtorespondtofareswhiledriving.[158]Inresponse,Uberhasstatedthattheapp"wasdesigned
withsafetyinmind,"andthatdriversarenotrequiredtophysicallylookatthedevicetoaccepta
fare.[158]
Seealso
Onlineplatformsforcollaborativeconsumption
TimelineofUber
Sidecar
Summon
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