Uber Pushed the Limits of the Law. Now Comes the Reckoning

[FrodosNewPet]

Uber Pushed the Limits of the Law. Now Comes the Reckoning

The ride-hailing company faces at least five U.S. probes, two more than previously reported, and the new CEO will need to dig the company out of trouble.

https://www.bloomberg.com/news/features/2017-10-11/uber-pushed-the-limits-of-the-law-now-comes-the-reckoning

Eric Newcomer | 11 October 2017

Shortly after taking over Uber Technologies Inc. in September, Dara Khosrowshahi told employees to brace for a painful six months. U.S. officials are looking into possible bribes, illicit software, questionable pricing schemes and theft of a competitor’s intellectual property. The very attributes that, for years, set the company on a rocket-ship trajectory—a tendency to ignore rules, to compete with a mix of ferocity and paranoia—have unleashed forces that are now dragging Uber back down to earth.

Uber faces at least five criminal probes from the Justice Department—two more than previously reported. Bloomberg has learned that authorities are asking questions about whether Uber violated price-transparency laws, and officials are separately looking into the company’s role in the alleged theft of schematics and other documents outlining Alphabet Inc.’s autonomous-driving technology. Uber is also defending itself against dozens of civil suits, including one brought by Alphabet that’s scheduled to go to trial in December.

Some governments, sensing weakness, are moving toward possible bans of the ride-hailing app. London, one of Uber’s most profitable cities, took steps to outlaw the service, citing “a lack of corporate responsibility” and specifically, company software known as Greyball, which is the subject of yet another U.S. probe. (Uber said it didn’t use the program to target officials in London, as it had elsewhere, and will continue to operate there while it appeals a ban.) Brazil is weighing legislation that could make the service illegal—or at least treat it more like a taxi company, which is nearly as offensive in the eyes of Uber.

~ snip ~

Kalanick also defined Uber’s culture by hiring deputies who were, in many instances, either willing to push legal boundaries or look the other way. Chief Security Officer Joe Sullivan, who previously held the same title at Facebook, runs a unit where Uber devised some of the most controversial weapons in its arsenal. Uber’s own board is now looking at Sullivan’s team, with the help of an outside law firm.

~ snip ~

[tymorial]

1. I still call for a cab

[FLPanhandle]

2. There is always Lyft.

I'll never willingly go back to taxi's.

There is a reason Uber/Lyft are so popular. It's a hell of a lot better than 99% of the taxi services out there.

[FrodosNewPet]

3. The ends justify the means?

The concept of Uber is great for passengers.

But the reality remains, they were ruthless under Travis Kalanick's leadership. And now, to some small degree, his disregard for the law is coming back to bite them. They have never been profitable. Major markets, such as London and perhaps Brazil, are outlawing them. Driver turnover is high. And if you ride Uber enough, the law of probabilities is that you will have a very bad experience as they are forced to lower their standards just to get drivers on the road.