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Uber Technologies, Inc.

Uber headquarters in San Francisco (2020)
Formerly	Ubercab (2009–2011)
Company type	Public
Traded as	NYSE: UBER Russell 1000 component
Industry	Transportation Mobility as a service
Founded	March 2009; 15 years ago (2009-03)
Founders	Garrett Camp Travis Kalanick
Headquarters	San Francisco, California, U.S.
Area served	Approximately 72 countries and 10,500 cities
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$17.46 billion (2021)
Operating income	−US$3.83 billion (2021)
Net income	−US$0.50 billion (2021)
Total assets	US$38.77 billion (2021)
Total equity	US$12.27 billion (2021)
Number of employees	29,300 (2021)
Subsidiaries	Car Next Door Careem Cornershop Drizly Postmates Uber Eats
Website	www.uber.com
Footnotes / references

Uber Technologies, Inc. (Uber) is an American mobility as a service provider. It is based in San Francisco with operations in approximately 72 countries and 10,500 cities. Its services include ride-hailing, food delivery (Uber Eats and Postmates), package delivery, couriers, freight transportation, electric bicycle and motorized scooter rental via a partnership with Lime, and ferry transport in partnership with local operators. Uber does not own any vehicles; instead, it receives a commission from each booking. Fares are quoted to the customer in advance but vary using a dynamic pricing model based on the local supply and demand at the time of the booking.

In the fourth quarter of 2021, Uber had 118 million monthly active users worldwide and generated an average of 19 million trips per day. In the United States, as of January 2022, Uber had a 71% market share for ride-sharing and a 27% market share for food delivery. Uber has been so prominent in the sharing economy that commoditization of service industries using computing platforms has been referred to as uberisation, and several startups have described their offerings as "Uber for X". Uber has posted hundreds of millions or billions of dollars in losses each year since 2014 except for 2018, when it exited the markets in Russia, China, and Southeast Asia in exchange for stakes in rival businesses.

Like similar companies, Uber has been criticized for the treatment of its drivers as gig workers and 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. The legality of Uber has been questioned and subsequently banned in multiple countries.

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, receiving the job by responding to a post on Twitter. 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 launched publicly 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, whereby 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 drivers 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 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 December 2016, Uber acquired the AI research startup Geometric Intelligence for an undisclosed amount. This coincided with the announcement of Uber AI Labs. Geometric Intelligence’s 15 person staff formed the initial core of the AI Labs team.

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.

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.

In June 2019, both COO Barney Harford and CMO Rebecca Messina stepped down. 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 2020 Uber announced plans to become an emission free platform. Uber introduced Uber Green, promoting users to choose electric and hybrid vehicles.

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. Around the same time, construction finished on Uber's new headquarters on Third Street in San Francisco's Mission Bay neighborhood, consisting of several 6- and 11-story buildings connected by bridges and walkways. Like various other office complexes in San Francisco, Uber's campus includes a public plaza, which the San Francisco Chronicle's architecture critic John King called the city's "best new public space", while praising the entire ensemble for its "low-key sophistication – not what you’d expect from a firm with a rapacious image."

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.

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

In October 2021, Uber acquired Drizly, an alcohol delivery service, for $1.1 billion in cash and stock. On January 20, 2022, Uber acquired Australian car-sharing company Car Next Door.

On March 11, 2022, Uber added a fuel surcharge to rides in the United States and Canada due to the ongoing energy crisis.. The new surcharge will be different depending on the trip length and gas prices in each state. In April 2022, Uber announced that the company will no longer require masks for US riders and drivers (subject to local regulations in some jurisdictions), and that riders may use the front seats unless they are traveling as part of a group.

Former operations

Self-driving cars

Uber ATG/Advanced Technologies Group, minority-owned by SoftBank Vision Fund, Toyota, and Denso, was developing self-driving cars. In early 2015, the company hired approximately 50 people from the robotics department of Carnegie Mellon University. On September 14, 2016, it launched self-driving cars in Pittsburgh using a fleet of Ford Fusion cars and on December 14, 2016, it began testing self-driving Volvo XC90 SUVs in San Francisco. After the California Department of Motor Vehicles forced the program to cease operations a week later, the program was moved to Arizona. In March 2018, it paused testing after the death of Elaine Herzberg in Tempe, Arizona. Uber restarted testing in December 2018 after receiving local approval in Pittsburgh and Toronto. In January 2021, with Uber ATG described as a "cash-burn machine", the division was sold to Aurora Innovation for $4 billion and Uber invested $400 million into Aurora, taking a 26% ownership stake.

Autonomous trucks

In 2016, Uber acquired Ottomotto, a self-driving truck company, for $625 million. Ottomotto was founded by Anthony Levandowski, previously of Waymo, who allegedly founded Ottomotto using trade secrets he downloaded while at Waymo. In February 2018, to settle a lawsuit regarding the stolen trade secrets, Uber gave Waymo $244 million in stock and agreed not to infringe on Waymo's intellectual property. Uber cancelled its self-driving truck program in July 2018.

Air services

In October 2019, in partnership with HeliFlight, Uber offered 8-minute helicopter flights between Manhattan and John F. Kennedy International Airport for $200-$225 per passenger.

In December 2020, Uber sold its Elevate division, which was developing short flights using VTOL aircraft, to Joby Aviation.

Uber Rent

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.

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.

Uber AI

In December 2016, Uber launched Uber AI, a division for researching AI technologies and machine learning. Uber AI created multiple open source projects, such as Pyro, Ludwig, and Plato. Uber AI also developed new AI techniques and algorithms, such as the POET algorithm and their sequence of papers on neuroevolution. Uber AI was shut down in May 2020 in order to refocus on Uber’s core operations in an effort to recover financial losses dealt by the COVID-19 pandemic.

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.

Congestion

Several studies, including a study funded by Uber, have found that Uber rides and rides with similar services result in vehicles spending a large amount of time driving without a passenger, and those vehicles have a low average passenger occupancy rate which increases congestion. One study 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. Later studies 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. This increase in congestion has led some cities to levy fees on Uber and similar services.

Another study indicates that the increase in traffic caused by Uber's lower fares generates collective costs (in lost time in congestion, increased pollution, increased accident risks, etc) that can exceed the economy and revenue generated by the service, indicating that, in certain conditions, Uber might have a social cost that's greater than its benefits.

Controversies

Ignoring and evading local regulations

Uber has been criticized for its strategy of generally commencing 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 lobbying, to change regulations. Uber argued that it is "a technology company" and not a taxi company, and therefore it was not subject to regulations affecting taxi companies. Uber's strategy was generally to "seek forgiveness rather than permission". In 2014, with regards to airport pickups without a permit in California, drivers were actually told to ignore local regulations and that the company would pay for any citations. Uber's response to California Assembly Bill 5 (2019), whereby it announced that it would not comply with the law, then engaged lobbyists and mounted an expensive public opinion campaign to overturn it via a ballot, was cited as an example of this policy. Taxi companies sued Uber in numerous American cities, alleging that Uber's policy of violating taxi regulations was a form of unfair competition or a violation of antitrust law. Although some courts did find that Uber intentionally violated the taxi rules, Uber prevailed in every case, including the only case to proceed to trial.

In March 2017, an investigation by The New York Times revealed that Uber developed a software tool called "Greyball" to avoid giving rides to known law enforcement officers in areas where its service was illegal such as in Portland, Oregon, Australia, South Korea, and China. The tool identified government officials using geofencing, mining credit card databases, identifying devices, and searches of social media. While at first, Uber stated that it only used the tool to identify riders that violated its terms of service, after investigations by Portland, Oregon, and the United States Department of Justice, Uber admitted to using the tool to skirt local regulations and promised not to use the tool for that purpose. The use of Greyball in London was cited by Transport for London as one of the reasons for its decision not to renew Uber's private hire operator licence in September 2017. A January 2018 report by Bloomberg News stated that Uber routinely used a "panic button" system, codenamed "Ripley", that locked, powered off and changed passwords on staff computers when those offices were subjected to government raids. Uber allegedly used this button at least 24 times, from spring 2015 until late 2016.

Attempts to sabotage competitors

In 2014, Uber employees were caught ordering and then quickly cancelling rides on competing services Lyft and Gett, in an attempt to disrupt these services. In 2014, Uber was also accused of recruiting people to use competing services for the sole purpose of recruiting their drivers to Uber, at which point the recruiter would receive a commission. Uber denied that it had any involvement with the cancellation of orders or the recruitment efforts.

Misleading drivers on potential earnings

In January 2017, Uber agreed to pay $20 million to the Federal Trade Commission to resolve allegations 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 to which they were entitled. The lawsuit was settled for $345,622, with each driver in the class getting at least $20.

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.

Boycott in the US

In late January 2017, GrabYourWallet advised to boycott Uber because the company did not join its Protests against Executive Order 13769, while Travis Kalanick, then CEO of Uber, was a member of Donald Trump's "business advisory council" and GrabYourWallet was advising boycotts of businesses with ties to Trump. Approximately 200,000 users deleted the Uber mobile app. On February 2, 2017, Kalanick resigned from the council, which disbanded in August 2017.

Sexual harassment allegations and management shakeup (2017)

On February 19, 2017, former Uber engineer Susan Fowler published on her website that she was propositioned for sex by a manager and subsequently threatened with termination of employment by another manager if she continued to report the incident. Kalanick was alleged to have been aware of the complaint. 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. After investigations led by former attorney general Eric Holder and Arianna Huffington, a member of Uber's board of directors, in June 2017, Uber fired over 20 employees. Kalanick took an indefinite leave of absence but, under pressure from investors, he resigned as CEO a week later. Also departing the company in June 2017 was Emil Michael, a senior vice president who 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 targeting Sarah Lacy, editor of PandoDaily, who, in an article published in October 2014, accused Uber of sexism and misogyny in its advertising. In August 2018, Uber agreed to pay a total of $7 million to settle claims of gender discrimination, harassment, and hostile work environment, with 480 employees and former employees receiving $10,700 each and 56 of those employees and former employees receiving an additional $33,900 each. In December 2019, Kalanick resigned from the board of directors of the company and sold his shares.

God view and privacy concerns

In November 2014, then U.S. Senator Al Franken, Chairman of the United States Senate Judiciary Subcommittee on Privacy, Technology and the Law, expressed concerns regarding Ride Sharing Privacy, specifically Uber's "God View", whereby the whereabouts of specific customers, including journalists and politicians, are able to be tracked by Uber insiders. In December 2014, in response to Franken, Uber implemented restrictions on that function.

In 2012, an Uber employee tracked the frequency of probable one-night stands in six U.S. cities by day and neighborhood, by correlating late-night and next-day trips. The blog posting coined the term "ride of glory" for the Uber equivalent of a walk of shame.

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.

Gender pay gap

A 2018 study found that male drivers earn about 7% more than female drivers. The gap was explained to be as a result of the fact that men drove 2.5% faster, work in more lucrative areas, and had 30% more experience than women. 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.

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 and pay compensation to six drivers that were allegedly automatically terminated solely due to algorithms, which is in violation of 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; however, the decision was upheld.

Racial shortcomings of facial recognition system

In October 2021, Uber was sued in London over allegations that its facial recognition system is not able to effectively identify people with darker skin and has precluded some people from using the platform, thereby discriminating against people of color.

Discrimination against drivers of color

In October 2020, a class action lawsuit was filed on behalf of all non-White drivers, alleging there was racial discrimination in how it uses passengers’ reviews to evalute drivers. Driver evaluation relies on Uber’s star rating system, which the lawsuit says disproportionately leads to the firing of people who are not white or who speak with accents. The case argues that “Uber’s reliance on customer ratings to determine driver termination constitutes race discrimination, as it is widely recognized that customer evaluations of workers are frequently racially biased.” The lawsuit was dismissed in August 2021 due to lack of evidence to prove that the rating system has a racially disparate impact and that Uber intentionally discriminated against the lead plaintiff. However, the judge acknowledged the plausibility of the case and granted permission to file a new complaint.

Impact

DUI

Studies have found that Uber’s presence 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.

Taxi industry

Uber and other ride sharing platforms have a substantial impact on the taxi industry. A study found that while some taxi drivers have lost income due to Uber, Uber has created more jobs than it has destroyed.

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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 (2019). Super Pumped: The Battle for Uber. New York. 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