Since its recognizable logo first appeared on our phone screens in 2011, Uber has quickly risen to become ubiquitous in modern-day transportation, overtaking taxis in many cities. The ride-hailing company has cemented its status as a pillar of the sharing economy, while also battling countless lawsuits, protests, and government regulations over the years. The controversies reached a head in June 2017, when co-founder Travis Kalanick stepped down from his position as CEO. Read on for a glimpse into the events that led to Kalanick’s resignation.

Rise to Ride-Sharing Royalty

Uber’s growth as one of the world’s top ride-sharing companies was swift. It easily secured several rounds of funding, and became one of the most valuable startups worldwide. Uber has yet to go public, but is valued at $70 billion.

Uber’s impact on the market is cultural, as well as financial–the term “uberisation” has come to refer to other companies and industries that take after the company’s business model of eliminating the middleman and connecting customers directly to service providers. And, as The Economist writes, the word “uber” has become its own verb, like Facebook or Google.

Though competitors like Lyft have slowly built up steam, Uber still dominates the market. At the end of May, Uber’s U.S. market share was 77 percent, down from 84 percent earlier in the year. This decrease, experts say, is likely the effect of the seemingly endless controversies that have tainted Uber over its lifetime.

Early Disputes

Uber’s efforts to transform the transportation market have been met with resistance from the beginning. In a 2013 class-action lawsuit, a group of drivers sued Uber for its labor practices. The suit claims the drivers have been “misclassified as independent contractors and are entitled to be reimbursed for their expenses that Uber should have to pay, like for gas and vehicle maintenance.” The company agreed to settle the suit for $100 million in 2016, but a federal judge denied the settlement and the case is still ongoing.

In the U.S. and worldwide, Uber has faced major scrutiny for operating in markets without adhering to local policies and procedures that regulate cabs. In 2014, several protests against the company broke out across Europe. These protests came to a head in 2015, when taxi drivers locked down the city of Paris, blocking roads, burning tires, and attacking drivers. The drivers considered Uber to be a form of “economic terrorism.”

“London Anti-Uber Taxi Protest” Courtesy David Holt : License (CC BY 2.0)

Uber is currently banned in Italy, Hungary, Denmark, and several other nations, in addition to some U.S. cities. In August 2016, Uber sold its presence in China to competitor Didi Chuxing, freeing it up to expand in other global markets. Today, the company operates in over 80 countries.

Over the years, Uber has come under fire for funneling millions into opposition research, both in plots to push out Lyft, its primary U.S. competitor, and to fight negative press coverage by “digging up dirt” on journalists. While these scandals have tarnished Uber’s image, 2017 has been an especially turbulent year for the company.

2017: A Year of Controversy

Uber’s controversies seemed to pile up at the beginning of 2017. When President Donald Trump’s travel ban was announced in January, protesters gathered at airports nationwide. While the New York Taxi Workers’ Alliance ceased operations at JFK to participate in the protest, Uber continued picking up customers, fueling backlash from many who said the company was profiting from Islamophobia and deportation. The company later apologized, but not before the hashtag “#DeleteUber” began trending and rival company Lyft announced its support for the protesters, promising to donate $1 million to the American Civil Liberties Union.

Toxic Culture

In February, Uber engineer Susan Fowler published a blog post documenting several incidents of sexual harassment during her time with the company. The post went viral and prompted Kalanick to hire former U.S. Attorney General Eric Holder to investigate the claims. In June, Holder presented the board with a report of the findings and series of recommendations to improve Uber’s workplace. One of the recommendations was to strip Kalanick of some of his power. Also in June, Uber fired 20 employees after an investigation unrelated to Holder’s revealed more evidence of bullying, harassment, and a “toxic” company culture.

Skirting the Rules

A few days after Fowler’s viral post was published, Uber was hit with a lawsuit from Waymo, a self-driving car offshoot of Alphabet, Google’s parent company. Waymo alleged that Uber stole trade and patent secrets, focusing on actions by Anthony Levandowski, a former Google engineer. Levandowski was fired from Uber in May, and a new filing in June revealed that Kalanick knew Levandowksi had possession of data from Google long before the Waymo suit was filed.

In March, The New York Times reported on Uber’s use of a technology called Greyball, which it employed primarily outside of the U.S., allowing drivers to evade local authorities in markets where the ride-hailing service had been banned. The Department of Justice launched an investigation in response.

“Travis Kalanick” Courtesy of TechCrunch : Licence (CC BY 2.0)

Kalanick’s Tarnished Image

Kalanick, as an individual, faced even more scrutiny in late February after he was caught on video in a profanity-laden argument with an Uber driver over the company’s falling fares, which the driver said made him “bankrupt.” After the video surfaced online, Kalanick publicly apologized.

“To say that I am ashamed is an extreme understatement,” Kalanick wrote in a company-wide email. “I must fundamentally change as a leader and grow up. This is the first time I’ve been willing to admit that I need leadership help and I intend to get it.”

Several years ago, Kalanick also came under fire for referring to his company as “Boob-er” in an highly-scrutinized GQ interview, saying that his desirability among women has increased since starting Uber.

Kalanick Resigns

A week before officially resigning, Kalanick announced an indefinite leave of absence from Uber leadership. This was in response to Holder’s recommendation that the company re-evaluate some of Kalanick’s responsibilities or distribute them among other members of leadership. In a memo to employees, Kalanick also said the leave of absence would give him time to grieve for his mother, who was killed in a boating accident weeks earlier.

Breaking: Uber CEO Travis Kalanick memo to employees on his leave of absence. Full text. @NPR pic.twitter.com/tCE4bZ2C0u

— Aarti Shahani (@aarti411) June 13, 2017

The temporary departure did not satisfy Uber’s investors, however. On June 20, two venture capitalists presented Kalanick with a list of demands, including his resignation. The letter was from five of Uber’s major investors, including Benchmark and the mutual fund giant Fidelity Investments. By the end of the day, his departure was made public.

Kalanick’s resignation isn’t the first indication of instability among the company’s top brass. Including the position of CEO, three of Uber’s eight leadership positions are currently vacant. Several other high-level positions and other leaders are also currently under scrutiny, and four out of seven board members, including the board’s only two women, are relatively new to the company.

What’s Next for Uber?

In spite of the recent controversies, Uber is continuing to expand and reshape its image. Uber added an in-app tipping function in June, much to the delight of drivers and customers, and the company’s self-driving projects are continuing to improve, even in the wake of the Waymo lawsuit. The company also streamlined its app to allow users to hail rides for others more easily, letting users call an Uber for a drunk friend or aging relative.

Unfortunately, the scandals haven’t stopped altogether. Less than 10 days after Kalanick’s resignation, civil rights activists filed suit against Uber in federal court for violating the Americans With Disabilities Act and the District of Columbia’s Human Rights Act by not accommodating passengers with non-collapsible wheelchairs.

Conclusion

Even with the departure of Kalanick, the rest of this year could be make or break for Uber. Kalanick still retains a seat on Uber’s board, as well as voting rights in company decisions. Some think he could be leaving the door open to return to the helm in the future. Murmurs of Uber going public are also ongoing. Uber’s market share decrease and 2016 earnings loss could still hold up an IPO, but economists and experts think Kalanick’s resignation is a good sign for the company’s public trading potential. All eyes will remain on Uber to see if the ride-sharing giant can continue to grow, while transforming its leadership and company culture.

Avery Anapol

Avery Anapol is a blogger and freelancer for Law Street Media. She holds a BA in journalism and mass communication from the George Washington University. When she’s not writing, Avery enjoys traveling, reading fiction, cooking, and waking up early. Contact Avery at Staff@LawStreetMedia.com.

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Dashcam Footage of Philando Castile Shooting Released

Police have released the dashcam video footage of the fatal shooting of Philando Castile by Officer Jeronimo Yanez last summer, and now many are even more stunned that the officer was recently acquitted. In the video, Yanez pulls Castile over to tell him his brake light is broken and asks for his driver’s license. But the polite conversation turns deadly in a matter of seconds, as Castile informs Yanez he has a gun in the car. “Don’t reach for it then,” Yanez says, while Castile assures him he isn’t trying to. Yanez is visibly nervous and keeps shouting at Castile to not reach for the gun as Castile and his girlfriend repeat that he isn’t reaching for it. But within seconds, Yanez fires seven times at Castile, while his girlfriend and her four-year-old daughter remain in the car.

The legal lynching of #PhilandoCastile. Video just released today.

An abomination. This officer is a murderer. Philando obeyed the law. pic.twitter.com/JNXA1XTlVk

— Shaun King (@ShaunKing) June 20, 2017

At the trial, Yanez claimed he feared for his life, as he believed Castile was reaching for the gun. He also said he smelled marijuana and claimed that if someone is reckless enough to smoke in front of a child, he might also kill a cop. Understandably, not many people bought that explanation and are outraged that Yanez was acquitted by a jury.

I can’t help but mention the deafening SILENCE from the @NRA with regard to LEGAL GUN OWNER #PhilandoCastille being murdered by police.

— Leslie Mac (@LeslieMac) June 16, 2017

Emma Von Zeipel

Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

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Adding to its recent legal woes, Uber is facing a criminal probe from the Justice Department, according to people familiar with the investigation. The investigation, which concerns the ride sharing service’s controversial Greyball tracking tool, is reportedly in its early stages. A federal inquiry does not necessarily indicate wrongdoing; criminal charges being brought against Uber executives are also not a guarantee.

Since The New York Times uncovered its existence in March, Greyball has been a lightning rod of controversy. Greyball is a technology that allows Uber to present fake versions of its app to people it does not want in its cars–like city officials looking to reign in the company’s illegal practices–and track them using credit card data and other personal information. Uber claims it used the tool to protect its drivers in new markets, some of which the service operated in illegally, like Portland, Oregon.

After the Times’ report in March, an Uber spokesman said Greyball “denies ride requests to users who are violating our terms of service — whether that’s people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret ‘stings’ meant to entrap drivers.”

But officials in cities like Portland, where Uber fought through legal hurdles in late 2014 before it began legally operating in the city in April 2015, say the tool was used for more nefarious reasons. According to Portland transportation officials, Uber intentionally skirted 16 city officials who were looking to shut-down the service because it was operating illegally at the time. Uber’s attorneys say the tool was used “exceedingly sparingly” in Portland; it had not been used since April 2015, they said.

Uber and its embattled chief executive, Travis Kalanick, has been embroiled in controversy for much of the year. From a spate of sexual assault accusations to a video of Kalanick berating an Uber driver, the $70 billion dollar behemoth is facing uncertainty as it enters Silicon Valley’s newest frontier: self-driving vehicles. In fact, Uber’s future in that field is increasingly in doubt. It was also recently hit with a lawsuit from Google’s autonomous car division, Waymo, which accused Uber of stealing its trade secrets.

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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Last Sunday, The New York Times published an extensive profile of Uber’s CEO, Travis Kalanick, which recounted his and his company’s numerous scandals. A new allegation was nestled among the long list of known controversies. The report claimed Uber bought data from Slice Intelligence to track the brand allegiances of thousands of rideshare customers. Slice Intel owns an email unsubscriber called Unroll.me, which it used to collect Lyft receipts from users’ inboxes before selling them to Uber. While it does not appear any laws were broken, the revelation has reignited a debate around profit-driven data collection.

The report only mentions this scheme in passing, but the fleeting allegation was enough to upset Unroll.me users. Hours after the report was published, Unroll.me’s CEO, Jojo Hedaya, released a tone-deaf statement on the company’s website.

The statement is titled “We Can Do Better,” but by “we” he means “the user.” In the non-apology, Hedaya places blame on the consumer. After describing the public anger as “heartbreaking,” Hedaya immediately notes that each user has to agree to Unroll.me’s terms of use and the “plain-English Privacy Policy,” but that “most don’t take the time to thoroughly review them.”

The statement indicates Unroll.me has no intention of changing its ways because it’s how the company can “monetize [its] free service.” This rationale is misleading. Users may not pay money to use the service but, as long as Unroll.me sells user data, the service isn’t free. Unroll.me profits at the expense of each user’s privacy and third-party buyers, such as Uber, set the price.

Unroll.me claims all the data it sells is anonymized, but it is difficult for any user to know how well their data is protected. The Times report details the way in which Uber uses its app to “fingerprint” iPhones. With a tiny line of code, Uber is able to identify any iPhone regardless of whether the Uber app had been deleted from the phone or the phone had been erased and reset. Increasingly, tech companies that claim to value user data, value it as something to be sold, not as something to protect.

Nothing is free. Consumers cannot demand private companies provide unmonetized free services. However, companies that sell user data cannot claim to provide free services. While users of a service like Unroll.me may not hand over money, a transaction ultimately takes place.

Callum Cleary

Callum is an editorial intern at Law Street. He is from Portland OR by way of the United Kingdom. He is a senior at American University double majoring in International Studies and Philosophy with a focus on social justice in Latin America. Contact Callum at Staff@LawStreetMedia.com.

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For the first three months of 2017, Uber has been mired in controversy. Many have attributed the strife to the company’s mistreatment of its employees, influenced by its toxic “bro” culture and iffy moral compass. While it’s easy to brush Uber’s woes off as growing pains for a burgeoning Silicon Valley tech company, its web controversies seem to point to bigger problems with leadership.

Compounding Controversies

Back in January, during the weekend of the first travel ban and successive protests, the company garnered harsh criticism for turning off its surge pricing for rides to New York’s JFK Airport. The opportunistic move prompted people to delete the app in favor of its competitor Lyft.

Shortly after that, Uber’s CEO, Travis Kalanick, left President Donald Trump’s economic advisory council amidst criticism from the public and Uber’s own employees. The company was also sued by Google for allegedly stealing a key component in self-driving car technology. Then in late February, Kalanick was caught on video arguing with a driver over Uber’s fares.

Most recently, Uber initiated an internal investigation into sexual harassment and discrimination allegations lobbed at the company. The investigation was opened after Susan Fowler, a former Uber engineer, wrote a blog post outlining her disturbing experience at the company with an anonymous male executive who propositioned her for sex, prompting several female employees to also come forward.

Multiple company executives have since resigned. While Uber has reacted quickly to all of these controversies, the company’s responses have been either met with criticism or overshadowed by yet another controversy.

Uber CEO Seeks Help

Following the embarrassing squabble with one of his drivers, Kalanick admitted that he needs to “fundamentally change as a leader and grow up.” As a result, Uber announced that Kalanick was seeking to hire “leadership help.”

In early March, Uber announced that this “leadership help” would come in the form of a new COO. But the search for this position appears to have hit a snag with the news of president Jeff Jones’ resignation and a rumors of a “toxic” company culture, with Kalanick at the helm. Jones’ hiring was heavily publicized by Uber, and his departure undoubtedly adds complications to Uber’s future hiring plans.

In a statement released to Recode, who first broke the story of his departure, Jones said:

I joined Uber because of its Mission, and the challenge to build global capabilities that would help the company mature and thrive long-term.

It is now clear, however, that the beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber, and I can no longer continue as president of the ride sharing business.

Dissatisfied Drivers and Changing the Company’s Culture

Aside from the resignations and sexual assault allegations from employees, Uber is also dealing with more crises regarding drivers’ dissatisfaction with wages. Uber drivers in some states are not allowed to accept tips and Uber’s attempt to strike down a Seattle law that allows its drivers to unionize proved fruitless.

Yesterday, four top Uber officials, all notably female, conducted a media call where they attempted to field questions about Uber’s shifting company culture. Conspicuously, Kalanick was not on the call, but Arianna Huffington, who sits on the company’s board of directors, was.

“Uber must change if it is to be as successful in the next decade as it has been in the last seven years,” Huffington said on the call. “Creating a great culture will be key to their future success. Going forward there can be no room at Uber for brilliant jerks and zero tolerance for anything but totally respectable behavior in an equitable workplace environment.”

Additionally, Huffington also reiterated the company’s faith in Kalnick’s leadership abilities, while underlining the fact that Uber’s culture had to change, and that new hires would be a focus for the company moving forward.

Uber executives have responded swiftly to each controversy; however, as we have seen with their clumsy and thwarted responses thus far, there’s no real indication that the company won’t stumble as it continues to move forward.

Austin Elias-De Jesus

Austin is an editorial intern at Law Street Media. He is a junior at The George Washington University majoring in Political Communication. You can usually find him reading somewhere. If you can’t find him reading, he’s probably taking a walk. Contact Austin at Staff@Lawstreetmedia.com.

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The night Uber cars went live on the streets of Portland, Erich England failed to catch a ride. At the time, news reports concluded England failed because of excessive demand. It turns out that Uber, which entered Portland’s market illegally and without approval from the city, was deliberately steering cars away from England, a code inspector who was dispatched as part of a sting operation on the ridesharing service. How was Uber ensuring England, and other city officials, did not find themselves in an Uber vehicle? By using a tracking tool known as Greyball.

Four current and former Uber employees described the Greyball tool to the New York Times as such: when a prospective rider is determined to be a law enforcement authority of any kind, he or she would see the Uber app as any other customer would. But their app would be a fake; the triangular symbols on a map that indicates where Uber cars are located, for the officials, would be “ghost cars.” If by chance a real driver picked up an official, Uber would call the driver to tell them to end the ride.

Skirting city officials, and identifying them, is accomplished through a variety of techniques. In one, Uber would set up a “geofence,” essentially a digital perimeter, around buildings where officials worked. Within the “geofence,” the people who frequently opened and closed the Uber app were sometimes flagged–“Greyballed”–as city officials. When they attempted to hail an Uber, a fake app would replace the real one, and “ghost cars” would replace actual ones. Another technique would examine users’ credit card information to determine whether the card was tied to a city agency. Uber has Greyballed authorities in Boston, Paris, Las Vegas, Australia, China, Italy, and South Korea.

Initially, Greyballing was used as a way to protect drivers in foreign countries where their safety was endangered by angry taxi drivers. In 2015, for instance, taxi companies and workers in Paris attacked Uber drivers. Uber would use the Greyball technique, part of a larger program called VTOS, or “violation of terms of service,” by identifying potentially nefarious actors. When it realized its potential uses in skirting officials from cities where it was unwelcome, the employees said, Uber used Greyball in that capacity as well.

Uber released a statement denying any wrongdoing. “This program denies ride requests to users who are violating our terms of service — whether that’s people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret ‘stings’ meant to entrap drivers,” a spokesman said.

With an estimated value of $70 billion and a ubiquitous presence in 70 countries, Uber seems like an implacable behemoth. But it has recently been embroiled in controversy, and many people are calling for its CEO, Travis Kalanick to step down. Earlier this week, Kalanick was videotaped by an Uber driver who he got caught in a heated exchange with. And last month, a former Uber engineer detailed sexual harassment she experienced while at the company. Her account was followed by other, similarly disturbing accounts.

Over the past few years, Uber has finagled its way into cities and markets around the world, at times without permission and without regulation. Last year, Uber lost the battle to continue its operations in China. But it remains a wealthy and powerful player in markets around the world. While Uber’s legal team authorized the use of Greyball, some in the company had qualms over the legality of the tool. As the company faces scrutiny from a number of angles, can it figure out a way to survive and continue its dominance?

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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Crowd-sourced mobile taxi service Uber has developed a bit of a reputation for having a sexist “bro culture.” A new announcement this morning from the company reveals it’s trying to change that. Uber announced it will be partnering with UN Women “with the goal of accelerating economic opportunity for women.” As part of that commitment, it has pledged to create 1,000,000 jobs for women drivers by 2020. That sounds good, but is this sudden explosion of growth really proof that the company is becoming more female friendly?

A good example of how Uber has gotten a sexist rep is the feud between the company and Sarah Lacy, the founder and Editor-in-Chief of tech website PandoDaily. In October, Uber’s French office unveiled a sexist promotion with an app called “Avions de Chasse” that pairs Uber riders with “hot chick” drivers. Lacy responded with an oped piece on her site criticizing the company’s “Asshole culture,” writing that she deleted the app. She stated she was shocked that this company valued at $18 million “celebrated treating women who may choose to drive cars to make extra money like hookers.”

That’s when Uber execs apparently retaliated in maybe the worst way possible. They hired spies. Yup, spies. Spies who allegedly attempted to dig up information on Lacy to discredit her. While nothing ever real came of it, there was a lot of public outcry against Uber.

USA Today reported that Emil Michael, senior vice president of the business, allegedly said at a dinner party that the company spends $1 million to conduct “oppo research” on journalists. That means digging for any information Uber can manipulate in order to discredit its journalist critics. After public backlash the company made its apologies on Twitter and dropped the promotion.

The controversy with Lacy wasn’t the only anti-female press for Uber. Uber founder Travis Kalanick was quoted referring to his company as “Boob-er” because of all the ladies he pulls due to its success. With comments like that it’s no wonder the company’s headquarters have been deemed a boyish clubhouse.

It only got worse for Uber in December when it was banned from New Delhi, India after a male Uber driver was accused of sexually assaulting a female passenger. Unfortunately, that’s not the only case of alleged Uber sexual assault. In Boston, an Uber driver was charged with sexual assault after inappropriately touching a female passenger while dropping her off in the North End neighborhood. With that in mind, hiring more female drivers could make female passengers feel safer while using the service. In NYC, the app SheRides has already created a business model based on the concept, with an all female fleet that it claims is tailored to the needs of women.

Currently women make up only about 14 percent of Uber’s 160,000 drivers in the U.S., according to the The Huffington Post. This new female hiring initiative would increase Uber’s driving force by more than seven times its current total. Its clear that Uber realizes that referring to itself as “Boob-er” and hiring spies to stalk female journalists wasn’t the best idea. This hiring initiative, however, is a good first step of many that Uber will need to take in order to rid itself of its negative “bro culture” rep.

Alexis Evans

Alexis Evans is an Assistant Editor at Law Street and a Buckeye State native. She has a Bachelor’s Degree in Journalism and a minor in Business from Ohio University. Contact Alexis at aevans@LawStreetMedia.com.

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