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Uber Technologies, Inc.

Formerly	Ubercab (2009–2011)
Company type	Public
Traded as	NYSE: UBER Russell 1000 Index component
Industry	Transportation
Founded	March 2009; 15 years ago (2009-03)
Founders	Garrett Camp Travis Kalanick
Headquarters	San Francisco, California, U.S.
Area served	69 countries, over 900 metropolitan areas
Key people	Ronald Sugar (Chairman) Dara Khosrowshahi (CEO) Nelson Chai (CFO) Tony West (CLO)
Products	Mobile app, website
Services	Vehicle for hire Food delivery Package delivery Courier Freight transport
Revenue	US$11.139 billion (2020)
Operating income	US$−4.863 billion (2020)
Net income	US$−6.768 billion (2020)
Total assets	US$33.252 billion (2020)
Total equity	US$12.967 billion (2020)
Number of employees	26,900 (2019)
Subsidiaries	Careem Cornershop Jump Postmates Uber Eats Zomato (9.1%)
Website	www.uber.com
Footnotes / references

Uber Technologies, Inc., commonly known as Uber, is an American technology company. Its services include ride-hailing, food delivery (Uber Eats), package delivery, couriers, freight transportation, and, through a partnership with Lime, electric bicycle and motorized scooter rental. The company is based in San Francisco and has operations in over 900 metropolitan areas worldwide. It is one of the largest firms in the gig economy.

Uber is estimated to have over 93 million monthly active users worldwide. In the United States, Uber has a 71% market share for ride-sharing and a 22% market share for food delivery. Uber has been so prominent in the sharing economy that changes in various industries as a result of Uber have been referred to as uberisation, and many startups have described their offerings as "Uber for X".

Like similar companies, Uber has been criticized for the treatment of drivers as independent contractors, disruption of taxicab businesses, and an increase in traffic congestion. The company has been criticized for various unethical practices and for ignoring local regulations, particularly under the leadership of former CEO Travis Kalanick.

Service overview

Uber determines the fees and terms on which drivers transport riders. The company takes a 25% share of each fare provided by Uber’s “partners”. Uber uses a dynamic pricing model. Fares fluctuate depending on the local supply and demand at time of service. Customers are quoted the fare in advance.

Service options

UberX is the basic level of service. It includes a private ride in a car with driver for up to four passengers. Depending on the location, Uber offers other levels of service at different prices including: black luxury vehicles, newer or premium level vehicles, cars with leather seats, sport utility vehicles, minivan, vans, hatchbacks, electric cars, hybrid vehicles, motorcycles, auto rickshaws, actual taxicabs, lower-cost shared transport with other passengers going in the same general direction (suspended during the COVID-19 pandemic), child safety seats, pet shipping, guaranteed Spanish language-speaking drivers, additional assistance to senior citizens and passengers with a physical disability, and wheelchair-accessible vans.

Persons with a service animal may use any type of Uber service, as required by law.

Through a partnership with Lime, users are able to rent Jump electric bicycles and motorized scooters.

Uber offers health professionals in the United States a HIPAA-compliant service for patients traveling to-and-from their appointments. Patients without smartphones can receive pickup information via text messaging or via the health professional's office.

Uber Freight matches freight shippers with truckers in a similar fashion to the matching of passengers with drivers.

In partnership with local operators, Uber offers boat transportation in certain locations at certain times of the year.

History

In 2009, Uber was founded as Ubercab by Garrett Camp, a computer programmer and the co-founder of StumbleUpon, and Travis Kalanick, who sold his Red Swoosh startup for $19 million in 2007.

After Camp and his friends spent $800 hiring a private driver, he wanted to find a way to reduce the cost of direct transportation. He realized that sharing the cost with people could make it affordable, and his idea morphed into Uber. Kalanick joined Camp and gives him "full credit for the idea" of Uber. The prototype was built by Camp and his friends, Oscar Salazar and Conrad Whelan, with Kalanick as the "mega advisor" to the company.

In February 2010, Ryan Graves became the first Uber employee. Graves started out as general manager and was named CEO shortly after the launch. In December 2010, Kalanick succeeded Graves as CEO. Graves became chief operating officer (COO). By 2019, Graves owned 31.9 million shares.

Following a beta launch in May 2010, Uber's services and mobile app officially launched in San Francisco in 2011. Originally, the application only allowed users to hail a black luxury car and the price was 1.5 times that of a taxi. In 2011, the company changed its name from UberCab to Uber after complaints from San Francisco taxicab operators.

The company's early hires included a nuclear physicist, a computational neuroscientist, and a machinery expert who worked on predicting demand for private hire car drivers. In April 2012, Uber launched a service in Chicago where users were able to request a regular taxi or an Uber driver via its mobile app.

In July 2012, the company introduced UberX, a cheaper option that allowed people to use non-luxury vehicles, including their personal vehicles, subject to a background check, insurance, registration, and vehicle standards. By early 2013, the service was operating in 35 cities.

In December 2013, USA Today named Uber its tech company of the year.

In August 2014, Uber launched UberPOOL, a shared transport service in the San Francisco Bay Area. The service soon launched in other cities worldwide.

In August 2014, Uber launched Uber Eats, a food delivery service.

In August 2016, facing tough competition, Uber sold its operations in China to DiDi in exchange for an 18% stake in DiDi. DiDi agreed to invest $1 billion in Uber. Uber had started operations in China in 2014, under the name 优步 (Yōubù).

In August 2017, Dara Khosrowshahi, the former CEO of Expedia Group, replaced Kalanick as CEO. In July 2017, Uber received a five-star privacy rating from the Electronic Frontier Foundation, but was harshly criticised by the group in September 2017 for a controversial policy of tracking customers' locations even after a ride ended, forcing the company to reverse its policy.

In February 2018, Uber combined its operations in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan with those of Yandex.Taxi and invested $225 million in the venture. In March 2018, Uber merged its services in Southeast Asia with those of Grab in exchange for a 27.5% ownership stake in Grab. Uber Rent, powered by Getaround, was a peer-to-peer carsharing service available to some users in San Francisco between May 2018 and November 2018. In November 2018, Uber became a gold member of the Linux Foundation.

On May 10, 2019, Uber became a public company via an initial public offering. Following the IPO, Uber's shares dropped 11%, resulting in the biggest IPO first-day dollar loss in US history. A month later both COO Barney Harford and CMO Rebecca Messina stepped down. Uber posted a US$1 billion loss in the first quarter of 2019, and a US$5.2 billion loss of for the second quarter.

In July 2019, the marketing department was reduced by a third, with the layoff of 400 people amidst continued losses. Engineer hires were frozen. In early September 2019, Uber laid off an additional 435 employees with 265 coming from the engineering team and another 170 from the product team.

In January 2020, Uber acquired Careem for $3.1 billion.

In the same month, Uber sold its Indian Uber Eats operations to Zomato, in exchange for 9.99% of Zomato.

Also in January 2020, Uber tested a feature that enabled drivers at the Santa Barbara, Sacramento, and Palm Springs airports to set fares based on a multiple of Uber's rates for UberX and UberXL trips.

On May 5, 2020, during the COVID-19 pandemic, Uber announced plans to layoff 3,700 employees, around 14% of its workforce.

On May 18, 2020, 3,000 more job cuts and 45 office closures were announced.

In June 2020, Uber announced that it would manage the on-demand high-occupancy vehicle fleet for Marin Transit, a public bus agency in Marin County, California. This partnership is Uber's first SaaS partnership.

In July 2020, Uber in partnership with its majority-owned Cornershop, launched Uber grocery delivery service in Latin America, Canada, Miami, and Dallas.

In November 2020, Uber announced that it had lost $5.8 billion.

On December 1, 2020, Uber acquired Postmates for $2.65 billion.

In early February 2021, Uber announced the purchase of Boston-based alcohol delivery service Drizly for $1.1 billion in cash and stock.

Also in February 2021, Uber announced it would team up with Walgreens pharmacies to offer free rides to stores and clinics offering COVID-19 vaccines for those who live in underserved communities.

In April 2021, Uber said that its employees are expected to return to office by September 13 and to work at least three days per week from office. Later in the month, Uber announced it would be expanding upon its food-delivery features to further integrate them with its ride service to accommodate a vaccinated public. Vaccination appointments will be facilitated through the app as well.

Former operations

Self-driving cars

Advanced Technologies Group (Uber ATG) was developing self-driving cars. It was minority-owned by SoftBank Vision Fund, Toyota, and Denso.

In early 2015, the company hired approximately 50 people from the robotics department of Carnegie Mellon University.

On September 14, 2016, Uber launched its first self-driving car services to select customers in Pittsburgh, using a fleet of Ford Fusion cars. Each vehicle was equipped with 20 cameras, seven lasers, Global Positioning System, lidar, and radar equipment.

On December 14, 2016, Uber began operating self-driving Volvo XC90 SUVs in its hometown of San Francisco. On December 21, 2016, the California Department of Motor Vehicles revoked the registration of the vehicles Uber was using for the test and forced the program to cease operations in California. Two months later, Uber moved the program to Arizona, where the cars were able to pick up passengers, although, as a safety precaution, two Uber engineers were always in the front seats of each vehicle. In March 2017, an Uber self-driving car was hit and flipped on its side by another vehicle that failed to yield. In October 2017, Uber started using only one test driver.

In November 2017, Uber announced a non-binding plan to buy up to 24,000 Volvo XC90 SUV vehicles designed to accept autonomous technology, including a different type of steering and braking mechanism and sensors.

In March 2018, Uber paused self-driving vehicle testing after the death of Elaine Herzberg in Tempe, Arizona. According to police, the woman was struck by an Uber vehicle while attempting to cross the street, while the onboard engineer was watching videos. Uber settled with the victim's family. Local authorities disagreed as to whether or not the car or Herzberg was at fault. In December 2018, after receiving local approval in Pittsburgh and Toronto, Uber restarted testing, but only during daylight hours and at slower speeds. In March 2019, Uber was found not criminally liable by Yavapai County Attorney's Office for Herzberg's death. The company changed its approach, inviting both Waymo and General Motors" Cruise self-driving vehicle unit to operate vehicles on Uber's ride-hailing network. In February 2020, Uber regained its self-driving vehicle permit and announced plans to resume testing in San Francisco.

In early 2019, Uber spent $20 million per month on research and development for autonomous vehicles; however, a source said that expenses on the autonomous vehicle program have been as high as $200 million per quarter.

In January 2021, Uber ATG was acquired by the self-driving startup Aurora Innovation for $4 billion and Uber invested $400 million into Aurora, taking a 26% ownership stake.

Autonomous trucks

After spending over $925 million to develop autonomous trucks, Uber cancelled its self-driving truck program in July 2018. Uber acquired Otto for $625 million in 2016. According to a February 2017 Waymo lawsuit, ex-Google employee Anthony Levandowski allegedly "downloaded 9.7 GB of Waymo's highly confidential files and trade secrets, including blueprints, design files and testing documentation" before resigning to found Otto, which was purchased by Uber. A ruling in May 2017 required Uber to return documents to Waymo. The trial began February 5, 2018. A settlement was announced on February 8, 2018 in which Uber gave Waymo $244 million in Uber equity and agreed not to infringe on Waymo's intellectual property.

Air services

In October 2019, in partnership with HeliFlight, Uber began offering a helicopter taxi service between Manhattan and John F. Kennedy International Airport. Operated by HeliFlite, Uber Copter offered 8-minute helicopter flights between Manhattan and John F. Kennedy International Airport for approximately $200 per passenger.

Uber's Elevate division was developing UberAir, which would have provided short flights using VTOL aircraft. In December 2020, Joby Aviation acquired Uber Elevate.

Uber Works

In October 2019, Uber launched Uber Works to connect workers who wanted temporary jobs with businesses. The app was initially available only in Chicago and expanded to Miami in December 2019. The service was shut down in May 2020.

Criticism

Criticism from taxi companies and taxi drivers

Values of taxi medallions, transferable permits or licenses authorizing the holder to pick up passengers for hire, have declined in value significantly. In 2018, this led to failures by credit unions that lent money secured by taxi medallions and suicides by taxi drivers.

Legal cases by taxi companies and taxi drivers

No lawsuit against Uber in which the plaintiffs were taxi companies has ended with a judgment in favor of the taxis. The only case that proceeded to trial, Anoush Cab, Inc. v. Uber Technologies, Inc., No. 19-2001 (1st Cir. 2021), which alleged that Uber caused asset devaluation by competing unfairly, resulted in a full verdict for Uber.

Flywheel, the largest operator of taxis in San Francisco, sued Uber in 2016, alleging antitrust violations and predatory pricing. In 2021, a federal judge threw out the bulk of the case and Uber settled the remainder of the case by integrating Flywheel taxis into its mobile app.

In 2019, 8,000 taxi drivers, represented by law firm Maurice Blackburn, filed a class action lawsuit against Uber in Australia alleging illegal taxi operations, loss of income and loss of value of taxi and/or hire car licences. Uber agreed to settle the case by paying AU$271.8 million.

Legal cases by drivers

Driver classification under employment law

Unless otherwise required by law, ridesharing companies have classified drivers as independent contractors and not employees under employment law, arguing that they receive flextime not generally received by employees. This classification has been challenged legally since it affects taxation, minimum wage requirements, working time, paid time off, employee benefits, unemployment benefits, and overtime benefits.

Jurisdictions in which drivers must receive the classification of "employees" include the United Kingdom (after the case of Aslam v Uber BV which was decided by the Supreme Court of the United Kingdom), Switzerland, New Jersey, and the Netherlands. California Assembly Bill 5 (2019) was passed to force drivers to be classified as employees in California, although ridesharing companies received an exemption by 2020 California Proposition 22, a ballot initiative. Ridesharing companies spent tens of millions of dollars on the campaign.

In some jurisdictions, laws were passed to guarantee drivers a minimum wage before and after expenses as well as paid time off and insurance benefits. Uber has paid to settle accusations of having misled drivers about potential earnings and shortchanging drivers.

Price fixing allegations

In the United States, drivers do not have any control over the fares they charge. A lawsuit filed in California, Gill et al. v. Uber Technologies, Inc. et al., alleged that this is a violation of the Sherman Antitrust Act of 1890. The lawsuit was denied class action status; a judge forced each plaintiff to go to arbitration individually. The case was dropped in March 2024.

Safety issues

Crimes have been committed by rideshare drivers as well as by individuals posing as rideshare drivers who lure unsuspecting passengers to their vehicles by placing an emblem on their car or by claiming to be a passenger's expected driver. The latter led to the murder of Samantha Josephson and the introduction of Sami’s Law. Ridesharing companies have been accused of not taking necessary measures to prevent sexual assault. They have been fined by government agencies for violations in their background check processes.The 2016 Kalamazoo shootings in February 2016, which left six people dead in Kalamazoo, Michigan, were committed by an Uber driver. Although Uber was criticized for its background check process, the driver did not have a criminal record, and the background check did not cause alarm.

Because it increases the number of people riding in automobiles instead of safer forms of transportation, a study from the Becker Friedman Institute at the University of Chicago tied ridesharing to an increase in traffic fatalities, including pedestrian deaths.

Studies have found that the presence of ridesharing companies in a city reduced the rate of drinking and driving crashes. Researchers have also found substantial decreases in both DUI arrests and motor vehicle injuries in Houston after Uber entered the market in 2014.

In November 2017, after discovering that 57 drivers in the state had violations in their background checks, including a convicted felon that received permission to drive for Uber by using an alias, the Colorado Public Utilities Commission fined Uber $8.9 million, or $2,500 per day that an unqualified driver worked.

In September 2017, Uber's application for a new license in London was rejected by Transport for London (TfL) because of the company's approach and past conduct showed a lack of corporate responsibility related to driver background checks, obtaining medical certificates and reporting serious criminal offences, and other issues regarding insurance and safety, including evidence that Uber driver accounts had been used by unauthorized drivers. After appealing the ruling, Uber was granted a license under certain conditions.

Ridesharing has also been criticized for encouraging or requiring phone use while driving. To accept a fare, some apps require drivers to tap their phone screen, usually within 15 seconds after receiving a notification, which is illegal in some jurisdictions since it could result in distracted driving.

Ridesharing vehicles in many cities routinely obstruct bicycle lanes while picking up or dropping off passengers, a practice that endangers cyclists.

Insufficient accessibility

Ridesharing has been criticized for providing inadequate accessibility measures for disabled people, in violation of local laws.

In some areas, vehicle for hire companies are required by law to have a certain amount of wheelchair accessible vans (WAVs) in use. However, most drivers do not own a WAV, making it hard to comply with the laws.

While ridesharing companies require drivers to transport service animals, drivers have been criticized for refusal to transport service animals, which, in the United States, is in violation of the Americans with Disabilities Act. In 2021, an arbitrator awarded $1.1 million to a visually impaired passenger who travels with a guide dog because she was denied rides 14 separate times.

Driver bias against passengers in certain demographic groups

Several audit studies of ridehailing companies have been conducted by researchers around the U.S. While these studies do find evidence that ridehailing drivers discriminate against riders on the basis of race (and in one of the studies, alliance with LGBT groups), two of the studies which also examined taxis found suggestive evidence that rates of discrimination by taxi drivers are significantly higher than by ridehailing drivers. The two studies that compare rates of discrimination in ridehailing services to taxis include an audit study set in Los Angeles in 2017 and another in Boston in late 2015 to 2016.

In the study set in Los Angeles, the author had participants of different races request rides from Uber, Lyft, and taxis. She found that Black riders were 73% (11 percentage points) more likely to have a taxi driver cancel on them than White riders. On the other hand, she found that Black riders were only 4 percentage points more likely to be cancelled on by an Uber driver than White riders (there was no statistically significant difference in likelihood for Lyft).

The Boston study notes that, at least at the time that the study was conducted, Lyft drivers were able to see all information in a rider's profile (including their uploaded photo and name) when reviewing a ride request; on the other hand, Uber drivers were only able to see a rider's name (and not their picture) after accepting a ride request. Thus, in the Boston study, riders were assigned distinctly "African American sounding names" and "white sounding names" to use when requesting a ride from both Uber and Lyft. Uber's setup of not allowing drivers to see rider's names till after a ride was accepted meant that the authors could quantify rates of discrimination by keeping track of how often riders assigned white sounding names were cancelled on compared to those assigned African American sounding names. In the end, the authors found that the riders assigned African American sounding names were more than twice as likely to get cancelled on as those assigned White sounding names. Despite this large disparity across the two groups, the authors found that there was no statistically significant difference in how long each group had to wait for a driver to arrive.

In 2024, a study by researchers at Carnegie Mellon University was published that focused on explaining why African American and White riders could experience such different cancellation rates but very similar wait times. Using an agent-based model developed to simulate real Uber and Lyft trips that have occurred in the city of Chicago, they found that the rapid rematching speed of Uber and Lyft drivers after a cancellation drastically reduces the effect of that cancellation on a rider's wait time. However, the paper also found that ridehailing services were not able to overcome the effects of racial residential segregation in Chicago (one of the most racially residentially segregated cities in the country); even when no drivers were cancelling on riders because of their race, the authors found that Black riders were waiting around 50% longer on average than White riders.

In addition to the studies discussed in detail above, a 2018 study in Washington, D.C. found that drivers cancelled ride requests from African Americans and LGBT and straight ally passengers (indicated by a rainbow flag) more often, but cancelled at the same rate for women and men. The higher cancellation rate for African American passengers was somewhat attenuated at peak times, when financial incentives were higher.

Traffic congestion

Studies have shown that especially in cities where it competes with public transport, ridesharing contributes to traffic congestion, reduces public transport use, has no substantial impact on vehicle ownership, and increases automobile dependency.

Dead mileage specifically causes unnecessary carbon emissions and traffic congestion. A study published in September 2019 found that taxis had lower rider waiting time and vehicle empty driving time, and thus contribute less to congestion and pollution in downtown areas. However, a 2018 report noted that ridesharing complements public transit. A study published in July 2018 found that Uber and Lyft are creating more traffic and congestion. A study published in March 2016 found that in Los Angeles and Seattle the passenger occupancy for Uber services is higher than that of taxi services, and concluded that Uber rides reduce congestion on the premise that they replace taxi rides. Studies citing data from 2010 to 2019 found that Uber rides are made in addition to taxi rides, and replace walking, bike rides, and bus rides, in addition to the Uber vehicles having a low average occupancy rate, all of which increases congestion. A 2021 study found that shifting private vehicle travel to ridehailing services can reduce air pollution costs, on average, but the increased costs from crash risk, congestion, climate change and noise outweigh these benefits. This increase in congestion has led some cities to levy taxes on rides taken with ridesharing companies. Another study shows that the surge factor pricing mechanism used for ridehailing services are informative for predicting taxi bookings as well, and that taxis incorporating this relative price can improve allocative efficiency and demand prediction.

A study published in July 2017 indicated that the increase in traffic caused by Uber generates collective costs in lost time in congestion, increased pollution, and increased accident risks that can exceed the economy and revenue generated by the service, indicating that, in certain conditions, Uber might have a social cost that is greater than its benefits.

Antitrust price-fixing allegations

Uber has been the subject of several antitrust investigations. Antitrust law generally holds that price-setting activities are permissible within business firms, but bars them beyond firm boundaries. Uber does not provide services to consumers directly. Instead, the company connects riders and drivers, sets service terms, and collects fares. The antitrust law's firm exemption strictly applies to entities that a firm directly controls, such as employees. Uber has managed to avoid litigating any antitrust problems. It was able to compel the Meyer v. Uber Technologies, Inc. lawsuit to be moved into arbitration.

In the 1951 antitrust case United States v. Richfield Oil Co., the court ruled for the government because Richfield Oil Co. exercised de facto control over "independent businessmen," in contravention of the antitrust laws, although they were not company employees. This has become the basis for delineation between the domains of labor and antitrust: if subordinate entities are "independent businessmen" and not employees, it is illegal to exercise control. The United States Supreme Court affirmed the same basic principle against coercion of non-employees by vertical supply contract in the 1964 case Simpson v. Union Oil Co. of California.

Microlabor online marketplaces like Uber, Lyft, Handy, Amazon Home Services, DoorDash, and Instacart have perfected a process where workers deal bilaterally with tasks offered by employers that assume no standard employer obligations, while the platform operates the labor market to its own benefit – what one antitrust expert called a "for-profit hiring hall."

Because Uber drivers are not employees and Uber sets the terms on which they transact with customers, including prices, Uber has been alleged to be in violation of the ban on restraints of trade in the Sherman Antitrust Act of 1890. This issue has yet to be resolved at trial. Uber publicly stated that: "we believe the law is on our side and that"s why in four years no anti-trust agency has raised this as an issue and there has been no similar litigation like it in the U.S."

Controversies

Principled confrontation

While Uber was led by Travis Kalanick, the company had an aggressive strategy for dealing with obstacles, including regulators. In 2014, Kalanick said "You have to have what I call principled confrontation." Uber's strategy was generally to commence operations in a city without regard for local regulations. If faced with regulatory opposition, Uber called for public support for its service and mounted a political campaign, supported by lobbyists, to change regulations. For example, in June 2014, Uber sent a notice to riders with the email address and phone number of a commissioner in Virginia who opposed the company and told riders to lobby the official, who received hundreds of complaints. In November 2017, CEO Dara Khosrowshahi proclaimed an end to the "win at all costs" strategy and implemented new values for the company, including "we do the right thing". Vice argued that Uber's response to California bill AB 5 in 2019 showed that "Uber's strategy to ignore or fight regulations remains the same as it's always been."

Attacks on competitors

Uber issued an apology on January 24, 2014 after documents were leaked claiming that Uber employees in New York City deliberately ordered rides from Gett, a competitor, only to cancel them later. The purpose of the fake orders was to waste drivers' time and delay service to legitimate customers.

Following Lyft's expansion into New York City in July 2014, Uber, with the assistance of TargetCW, sent emails offering a "huge commission opportunity" to several contractors based on the "personal hustle" of the participants. Those who responded to the solicitation were offered a meeting with Uber marketing managers who attempted to create a "street team" to gather intelligence about Lyft's launch plans and recruit their drivers. Recruits were given two Uber-branded iPhones (one a backup in case the person was identified by Lyft) and a series of valid credit card numbers to create dummy Lyft accounts. Participants were required to sign non-disclosure agreements.

In August 2014, Lyft reported that 177 Uber employees had ordered and canceled approximately 5,560 Lyft rides since October 2013, and that it had found links to Uber recruiters by cross-referencing the phone numbers involved. The report identified one Lyft passenger who canceled 300 rides from May 26 to June 10, 2014, and who was identified as an Uber recruiter by seven different Lyft drivers. Uber did not apologize, but suggested that the recruitment attempts were independent parties trying to make money.

Misleading drivers

In January 2017, Uber agreed to pay $20 million to the US government to resolve accusations by the Federal Trade Commission of having misled drivers about potential earnings.

Alleged short-changing of drivers

In 2017, a class action lawsuit was filed on behalf of thousands of Uber drivers, alleging that Uber’s “upfront prices” policy did not provide drivers with the 80% of fares they were entitled to.

In May 2017, after the New York Taxi Workers Alliance (NYTWA) filed a class-action lawsuit in federal court in New York, Uber admitted to underpaying New York City drivers tens of millions of dollars over 2.5 years by calculating driver commissions on a net amount. Uber agreed to pay the amounts owed plus interest.

Operating during a taxi strike

In late January 2017, Uber was targeted by GrabYourWallet for collecting fares during a New York City taxi strike in protest of Executive Order 13769. Uber removed surge pricing from JFK airport, where refugees had been detained upon entry. Uber was targeted because Kalanick had joined the administration's Economic Advisory Council. A social media campaign known as #DeleteUber formed in protest, leading approximately 200,000 users to delete the app. Statements were later e-mailed to former users who had deleted their accounts, asserting that the company would assist refugees, and that Kalanick's membership was not an endorsement of the administration. On February 2, 2017, Kalanick resigned from the council.

Evasion of law enforcement operations

Greyball

Starting in 2014, Uber used its Greyball software to avoid giving rides to certain individuals. By showing "ghost cars" driven by fake drivers to the targeted individuals in the Uber mobile app, and by giving real drivers a means to cancel rides requested by those individuals, Uber was able to avoid giving rides to known law enforcement officers in areas where its service was illegal. A New York Times report on March 3, 2017, made public Uber's use of Greyball, describing it as a way to evade city code enforcement officials in Portland, Oregon, Australia, South Korea, and China. At first, in response to the report, Uber stated that Greyball was designed to deny rides to users who violate Uber's terms of service, including those involved in sting operations. According to Uber, Greyball can "hide the standard city app view for individual riders, enabling Uber to show that same rider a different version". Uber reportedly used Greyball to identify government officials by noting whether a user frequently opens the app near government offices, using users' social media profiles to identify law enforcement personnel, and noticing credit cards associated with the Uber account.

On March 6, 2017, the City of Portland, Oregon announced an investigation into whether Uber had obstructed the enforcement of city regulations. The investigation by the Portland Bureau of Transportation (PBOT) found that: "Uber used Greyball software to intentionally evade PBOT's officers from December 5 to December 19, 2014 and deny 29 separate ride requests by PBOT enforcement officers." Following the release of the audit, Portland's commissioner of police suggested that the city subpoena Uber to force the company to turn over information on how Uber used software to evade regulatory officials. On March 8, 2017, Uber admitted that it had used Greyball to thwart government regulators and pledged to stop using the service for that purpose. In May 2017, the United States Department of Justice opened a criminal investigation into Uber's use of Greyball to avoid local law enforcement operations.

Ripley

After a police raid on Uber's Brussels office, a January 2018 report by Bloomberg News stated that "Uber routinely used Ripley to thwart police raids in foreign countries." It offered a "panic button" system, initially called "unexpected visitor protocol", then "Ripley". It locked, powered off and changed passwords on staff computers when raided. Uber allegedly used this button at least 24 times, from spring 2015 until late 2016.

Sexual harassment allegations and management shakeup (2017)

On February 20, 2017, former Uber engineer Susan Fowler stated that she was subjected to sexual harassment by a manager and subsequently threatened with termination by another manager if she continued to report the incident. Kalanick was alleged to have been aware of the complaint

Fowler likened Uber's culture to A Game of Thrones, in which Uber employees aggressively vied for power and betrayal was common.

Uber hired former attorney general Eric Holder to investigate the claims and Arianna Huffington, a member of Uber's board of directors, also oversaw the investigation.

On February 27, 2017, Amit Singhal, Uber's Senior Vice President of Engineering, was forced to resign after he failed to disclose a sexual harassment claim against him that occurred while he served as Vice President of Google Search.

In June 2017, Uber fired over 20 employees as a result of the investigation. Kalanick took an indefinite leave of absence. Under pressure from investors, he resigned as CEO a week later.

In 2019, Kalanick resigned from the board of directors of the company and sold his shares.

Scandals and departure of Emil Michael

At a private dinner in November 2014, senior vice president Emil Michael suggested that Uber hire a team of opposition researchers and journalists, with a million-dollar budget, to "dig up dirt" on the personal lives and backgrounds of media figures who reported negatively about Uber. Specifically, he targeted Sarah Lacy, editor of PandoDaily, who, in an article published in October 2014, accused Uber of sexism and misogyny in its advertising. Michael issued a public apology and apologized to Lacy in a personal email, claiming that Uber would never actually undertake the plan. After additional scandals involving Michael, including an escort-karaoke bar scandal in Seoul and the questioning of the medical records of a rape victim in India, he left the company in June 2017 when Kalanick, who reportedly was protecting Michael, resigned.

Settlement with victims

In August 2018, Uber agreed to pay a total of $7 million to 480 workers to settle claims of gender discrimination, harassment, and hostile work environment.

God view and privacy concerns

On November 19, 2014, then U.S. Senator Al Franken, Chairman of the United States Senate Judiciary Subcommittee on Privacy, Technology and the Law, sent a letter to Kalanick regarding privacy. Concerns were raised about internal misuse of the company's data, in particular, the ability of Uber staff to track the movements of its customers, known as "God View". In 2011, a venture capitalist disclosed that Uber staff members were using the function to track journalists and politicians as well as using the feature recreationally. Staff members viewed being tracked by Uber as a positive reflection on the subject's character. An Uber job interviewee said that he was given unrestricted access to Uber's customer tracking function as part of the interview process.

Delayed disclosure of data breaches

On February 27, 2015, Uber admitted that it had suffered a data breach more than nine months prior. Names and license plate information from approximately 50,000 drivers were inadvertently disclosed. Uber discovered this leak in September 2014, but waited more than five months to notify the affected individuals.

An announcement in November 2017 revealed that in 2016, a separate data breach had disclosed the personal information of 600,000 drivers and 57 million customers. This data included names, email addresses, phone numbers, and drivers' license information. Hackers used employees' usernames and passwords that had been compromised in previous breaches (a "credential stuffing" method) to gain access to a private GitHub repository used by Uber's developers. The hackers located credentials for the company's Amazon Web Services datastore in the repository files, and were able to obtain access to the account records of users and drivers, as well as other data contained in over 100 Amazon S3 buckets. Uber paid a $100,000 ransom to the hackers on the promise they would delete the stolen data. Uber was subsequently criticized for concealing this data breach. Khosrowshahi publicly apologized. In September 2018, in the largest multi-state settlement of a data breach, Uber paid $148 million to the Federal Trade Commission, admitted that its claim that internal access to consumers' personal information was closely monitored on an ongoing basis was false, and stated that it had failed to live up to its promise to provide reasonable security for consumer data. Also in November 2018, Uber's British divisions were fined £385,000 (reduced to £308,000) by the Information Commissioner's Office.

In 2020, the US Department of Justice announced criminal charges against former Chief Security Officer Joe Sullivan for obstruction of justice. The criminal complaint said Sullivan arranged, with Kalanick's knowledge, to pay a ransom for the 2016 breach as a "bug bounty" to conceal its true nature, and for the hackers to falsify non-disclosure agreements to say they had not obtained any data.

Use of offshore companies to minimize tax liability

In November 2017, the Paradise Papers, a set of confidential electronic documents relating to offshore investment, revealed that Uber is one of many corporations that used an offshore company to minimize taxes.

Discrimination against a blind customer

In April 2021, an arbitrator ruled against Uber in a case involving Lisa Irving, a blind American customer with a guide dog who was denied rides on 14 separate occasions. Uber was ordered to pay US$1.1 million, reflecting $324,000 in damages and more than $800,000 in attorney fees and court costs.

Court of Amsterdam case on 'robo-firings'

In April 2021, the court of Amsterdam ruled that Uber has to reinstate six drivers that were allegedly terminated based solely on algorithms and pay them a compensation fee. The practice of firing employees via automated means is against Article 22 of GDPR, which relates to automated decisions causing "legal or significant impact". Uber challenged the ruling, claiming it was not aware of the case and that the judgement was brought by default without the company ever being notified. A court representative said the decision would be upheld and the case is now closed.

Data

Customer service

Economist John A. List analyzed company data to explore the effect of customer problems and company response on future customer orders. For example, Uber's algorithms might inform the rider that a trip will take 9 minutes, while it actually takes 23 minutes. The analysis found that people with a bad experience later spent up to 10% less with Uber. List then observed how different company responses to the experience affected future use. Options include a "sincere apology", an admission that the company had failed, a commitment to "ensure that this will not happen again" and a discount on their next ride. Apology was ineffective in retaining customers. A US$5 discount voucher did reduce losses. Repeated bad experiences followed by apologies further alienated customers.

Male vs. female driver earnings

Data analysis found that male drivers earn about 7% more than women; men were found to drive on average 2.5% faster, enabling them to serve more customers. Women passengers gave tips averaging 4%, while men gave 5%; but women drivers received more tips—so long as they were below 65 years of age.

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Further reading

Scholarly papers

• Laurell, Christofer; Sandström, Christian (June 28, 2016). "Analysing Uber in social media – disruptive technology or institutional disruption?". International Journal of Innovation Management. 20 (5): 1640013. doi:10.1142/S1363919616400132.
• McGaughey, E. (2018). "Uber, the Taylor Review, mutuality, and the duty to not misrepresent employment status". Industrial Law Journal. SSRN 3018516.
• Petropoulos, Georgios (February 22, 2016). "Uber and the economic impact of sharing economy platforms". Bruegel.
• Noto La Diega, Guido (2016). "Uber law and awareness by design. An empirical study on online platforms and dehumanised negotiations" (PDF). Revue européenne de droit de la consommation/ European Journal of Consumer Law. 2016 (II): 383–413 – via Northumbria Research Link.
• Oitaven, Juliana Carreiro Corbal; Carelli, Rodrigo de Lacerda; Casagrande, Cássio Luís (2019). Empresas de transporte, plataformas digitais e a relação de emprego: um estudo do trabalho subordinado sob aplicativos (PDF) (in Portuguese). Brasília: Ministério Público do Trabalho. ISBN 978-8566507270.
• Rogers, B. (2015). "The Social Costs of Uber". University of Chicago Law Review Dialogue. 82: 85.

Books

• Isaac, Mike. Super Pumped: The Battle for Uber. New York, NY. ISBN 978-0393652246. OCLC 1090686951.

Further Viewing

• PBS Television Show: PLAYING BY THE RULES: ETHICS AT WORK: Season 3 Episode 1: Driven

External links

• Official website
• Business data for Uber Inc.:
  • Bloomberg
  • Google
  • Reuters
  • SEC filings
  • Yahoo!

v t e Uber
Founders	Travis Kalanick Garrett Camp
Executives	Ronald Sugar (Chairman) Dara Khosrowshahi (CEO) Nelson Chai (CFO) Thuan Pham (former CTO)
Subsidiaries	Uber Eats Careem Postmates
Acquisitions	Careem Drizly Jump Ottomotto Postmates Car Next Door
Defunct/Former	Jump Ottomotto
History	Timeline of Uber Controversies involving Uber 2019 strike
Related	Ridesharing company Legality of ridesharing companies by jurisdiction Sharing economy
Category

• Uber
• 2009 establishments in California
• 2019 initial public offerings
• American companies established in 2009
• Companies based in San Francisco
• Location-based software
• Companies listed on the New York Stock Exchange
• Transport companies established in 2009
• Ridesharing companies of the United States