Professional Documents
Culture Documents
Uber Scandal
Uber Scandal
Uber Scandal
San Francisco, California. Uber offers services including peer-to-peer ridesharing, ride
- The company has operations in 785 metropolitan areas worldwide. Its platforms can be
- Uber has been so prominent in the sharing economy that the changes in industries as a
result of it have been referred to as uberisation, and many startups have described their
products as "Uber for X".Uber is estimated to have 110 million worldwide users and a
- Uber is a gold member of the Linux Foundation and has a five star privacy rating from
- For riders - Uber is a convenient, inexpensive and safe taxi service. Hire a private driver
to pick you up & take you to your destination with the tap of a button on any
smartphone device. A nearby driver often arrives to pick you up within minutes. Not
only is this an on-demand car service, but you can even watch as your driver is en-route
- For drivers - Uber provides exceptional pay, allows you to be your own boss, and even
receive tips. Take on fares whenever you wish (work as much or as little as you desire)
while meeting new people in your city from all walks of life.
- Uber is much more than a catchy name, Uber has managed to capture its share of the
market through a great app, excellent social media marketing, and aggressive courting
of drivers. The background technology is remarkable, connecting riders and drivers
with a smooth interface that rarely reports errors.
- Uber has also been criticized for allegedly questionable tactics in trying to woo drivers
away from Lyft, its major competitor.
2. Uber features
a- click hailing –pick up here in 5 mins.
b- Fast response time – easier than calling.
c- Luxury drivers –rate your trip.
d- High tech solution: GEO- aware auto dispatch.
e- Optimized fleet –Logistical LBS software.
Uber has recently taken initiatives to increase safety on the app, announcing
new features like Trusted Contacts, which allows users to share their ride
details with up to five friends or family members.
In its filing, Waymo said it was inadvertently copied on an email from one
of its suppliers with drawings of Uber’s circuit board design for its lidar
technology, short for light detection and ranging, ” that are laser-based
sensors used in self-driving cars. Waymo also said that a number of
Google employees, who subsequently left to join Mr. Levandowski at Otto,
downloaded additional trade secrets before departing. These included
supplier lists, manufacturing details and technical information, Waymo
said Otto was the brainchild of a handful of former Google employees who
pioneered autonomous vehicle research at the search giant. Mr.
Levandowski, who had been at Google nine years, led that effort.He is a
prominent figure in the world of self-driving vehicles, having worked on
the technology for more than a decade and achieving some degree of
renown as a graduate student at the University of California, Berkeley, in
2004, when he designed a self-driving motorcycle that was entered in the
Pentagon’s first contest for autonomous vehicles. For Uber, Otto represents
a significant bet on the future of transportation. Mr. Levandowski was
named vice president of Uber’s self-driving technology, and he reports
directly to Travis Kalanick, the company’s chief executive. Mr.
Levandowski leads Uber’s Advanced Technologies Center in Pittsburgh,
the epicenter of the company’s testing and self-driving efforts.
- Targeting the competitor, August 2014
Uber faced accusations that it booked thousands of fake rides from its
competitor Lyft in an effort to cut into its profits and services. Uber
recruiters also allegedly spammed Lyft drivers in an effort to recruit them
away from the rival.
- The ‘God View’ scandal, November 2014
Uber executive Emil Michael suggested digging up dirt on journalists and
spreading personal information of a female reporter who was critical of the
company. He later apologized. It was also revealed that Uber has a so-
called “God View” technology that allows the company to track users’
locations, raising privacy concerns. One manager had accessed the profile
of a reporter without her permission.
- Boob-er’ backlash, February 2014
Uber CEO Travis Kalanick faced backlash for a sexist joke about his
increasing desirability, telling an Esquire reporter: “We call that Boob-er.”
- Spying on Beyoncé, December 2016
A former forensic investigator for Uber testified that employees regularly
spied on politicians, exes and celebrities, including Beyoncé.
- Self-driving pilot failure, December 2016
Regulators in California ordered Uber to remove self-driving vehicles from
the road after the company launched a pilot without permits. On the first
day of the program, the vehicles were caught running red lights, and
cycling advocates in San Francisco also raised concerns about the cars
creating hazards in bike lanes. The company blamed red-light issues on
“human error”, but the New York Times later claimed that the company’s
statements were false and that the autonomous technology failed.
- False advertising, January 2017
Uber was forced to pay $20m to settle allegations that the company duped
people into driving with false promises about earnings. The Federal Trade
Commission claimed that most Uber drivers earned far less than the rates
Uber published online in 18 major cities in the US.
- Delete Uber goes viral, January 2017
Delete Uber campaign went viral after the company lifted surge pricing
during a taxi protest at a New York airport against Donald Trump’s travel
ban. A total of roughly 500,000 users reportedly deleted accounts after the
scandal erupted.
- Trump ties, February 2017
CEO Travis Kalanick resigned from Trump’s advisory council after users
threatened a boycott. Kalanick said: “Joining the group was not meant to
be an endorsement of the president or his agenda but unfortunately it has
been misinterpreted to be exactly that.”
- Sexual harassment scandal, February 2017
Former Uber engineer Susan Fowler went public with allegations of sexual
harassment and discrimination, prompting the company to hire former US
attorney general Eric Holder to investigate her claims. The story sparked
widespread debate about sexism and misconduct across Silicon Valley
startups.
- Deceiving law enforcement, March 2017
The New York Times reported that Uber for years used a tool called
Greyball to systematically deceive law enforcement in cities where the
company violated local laws. The company used Greyball to identify
people believed to be working for city agencies and carrying out sting
operations, the Times reported. The revelations led to the launch of a
federal investigation.
- CEO caught yelling at a driver, March 2017
Kalanick was caught on camera arguing with his own Uber driver, who
complained about the difficulty making a living with the company’s
declining rates. The embattled CEO yelled at the driver: “Some people
don’t like to take responsibility for their own shit. They blame everything
in their life on somebody else. Good luck!” He later issued an apology and
said he intended to get “leadership help”.
- Escorts in Seoul, March 2017
Tech news site the Information reported that a group of senior employees,
including Kalanick, visited an escort and karaoke bar in Seoul in 2014,
leading to an HR complaint from a female marketing manager. Patrons at
the bar typically select women to sing karaoke with before taking them
home.
- Spying on the rival, April 2017
News leaked of a secret program that Uber internally called “Hell” that
allowed the company to spy on its rival Lyft to uncover drivers working
for both companies and to help steer them away from the competitor.
- Underpaying drivers, May 2017
Uber agreed to pay drivers in New York City tens of millions of dollars
after admitting it underpaid them for more than two years by taking a
larger cut of fares than it was entitled. The average payout per driver is
expected to be about $900.
-Twenty employees fired, June 2017
Uber revealed that it had fired more than 20 employees following an
investigation into the sexual harassment claims and workplace culture.
7- Conclusion
Ethics concern an individual's moral judgments about right and wrong.
Decisions taken within an organization may be made by individuals or
groups, but whoever makes them will be influenced by the culture of the
company. The decision to behave ethically is a moral one; employees must
decide what they think is the right course of action. This may involve
rejecting the route that would lead to the biggest short-term profit. Ethical
behavior and corporate social responsibility can bring significant benefits to
a business. For example, they may:
attract customers to the firm's products, thereby boosting sales and
profits
make employees want to stay with the business, reduce labour turnover
and therefore increase productivity
attract more employees wanting to work for the business, reduce
recruitment costs and enable the company to get the most talented
employees
Attract investors and keep the company's share price high, thereby
protecting the business from takeover.
Unethical behavior or a lack of corporate social responsibility, by
comparison, may damage a firm's reputation and make it less appealing to
stakeholders. Profits could fall as a result.
8- lessons
- The lesson we should have learnt from these scandals is that corporate
culture matters. The hard question is not who did what, but why they did
it. The standard answer to this question is simple. It is that somebody got
greedy - that corporate skullduggery is an economic phenomenon,
explained by how the average person responds to constraints and
opportunities.
- As Uber lists its workplace culture among the many risks the company laid
out in detail and says that recent changes “may not be successful, and
regulators may continue to perceive us negatively, which would adversely
impact our business, financial condition, operating results, and prospects.”
- workplace culture and forward-leaning approach created significant
operational and cultural challenges that have in the past harmed, and may
in the future continue to harm business results. That culture included such
well-known problems as Uber’s “focus on aggressive growth and intense
competition” and “failure to prioritize compliance”, as well as less public
struggles, like “a lack of transparency internally” resulting in “ siloed
teams that lack coordination and knowledge sharing”.
- Again culture is there and it matters. The low context culture of
the company has affected the employee’s behavior that why considering
culture in management is so important
https://www.slideshare.net/SkylarDann/uber-presentation-final
https://www.nytimes.com/2017/02/23/technology/google-self-driving-
waymo-uber-otto-lawsuit.htm
https://www.theguardian.com/technology/2017/jun/18/uber-travis-
kalanick-scandal-pr-disaster-timeline
https://www.cnet.com/news/ubers-u-turn-how-ceo-dara-khosrowshahi-is-
cleaning-up-after-scandals-and-lawsuits/