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Uber, a Start-Up Going So Fast It Could Miss a Turn

The New York Times

November 18th, 2014

 

http://www.themalaymailonline.com/images/sized/ez/uber_smartphone_app_german_taxi_20141010_840_538_100.JPG

 

In just four years of operation, Uber has ignited a new global ride-sharing industry with the promise of transforming urban transportation and helping many people get by without owning cars.

 

But these days, the hot start-up is facing its toughest challenge yet — curbing its ugliest, most aggressive impulses before its win-at-all-cost culture begins to turn off investors, potential employees and the ride-hailing public at large.

 

The revelation, reported on Monday by BuzzFeed, that an executive publicly floated the idea of investigating the private lives of journalists who criticize Uber was only the latest in a parade of unflattering news about Uber’s tactics as it navigates the next phase of its growth.

 

Uber has grown into one of the most valuable start-ups in Silicon Valley, with outposts around the world. It has raised about $1.5 billion and is valued at more than $17 billion, with the inevitable talk of a public offering.

 

 

Emil Michael, Uber’s senior vice president for business, was said to lay out a plan to hire a team to investigate journalists and defend the company from perceived negative coverage.Uber Executive’s Comments Leave Company ScramblingNOV. 18, 2014

Uber’s hard-charging culture is in many ways characteristic of start-ups in general. But fostering such a culture can become a losing proposition faster than you might imagine.

 

 

“The dangerous thing in tech is a narrative,” said Jan Dawson, an independent industry analyst. “The more stories that come out about Uber behaving badly — whether it’s about the way it competes with rivals or the fact that an executive discussed looking into journalists — the risk is that it starts to become the main story about the company, rather than the great service it provides or its low prices.”

 

On Tuesday afternoon, after the journalist-spying story had captivated much of Silicon Valley’s clubby tech press, Travis Kalanick, Uber’s chief executive, made an apologetic series of posts on Twitter regarding the executive, Emil Michael.

 

 

None of the 14 Twitter posts mentioned Mr. Michael’s future with the company.

 

Technology companies live and die by culture; “culture eats strategy for breakfast” is among the most cherished sayings in Silicon Valley. What that means is that a company’s ultimate success or failure is determined less by anodyne technological prowess than by the values and behavior of people who work there.

 

This may be particularly true for Uber, which is in many ways an incorporeal company. It owns no cars, its drivers are at-will contractors who can easily switch to rival services, and its customers are just one tap away from some other service. What’s more, though it is growing quickly, it is still young, and many people haven’t ever used one of its cars.

 

If Uber’s brand becomes associated with bad behavior, what’s to stop people from choosing its rival Lyft — or from just hailing a taxi?

 

Uber has recently been dogged by accusations of various sorts. Last New Year’s Eve, a driver hit an immigrant family in San Francisco, killing a 6-year-old and leading to a wrongful-death lawsuit against the company. There have also been several accusations of Uber drivers sexually assaulting passengers.

 

Meanwhile, some drivers have protested over their wages and working conditions. And this summer, The Verge reported that Uber was waging a sophisticated campaign to recruit drivers from its archrival Lyft, a plan that “resulted in thousands of canceled Lyft rides.”

 

Continue reading the main storyContinue reading the main storyContinue reading the main story

Mr. Kalanick later told Vanity Fair that he also tried to crimp Lyft’s recent round of fund-raising by calling venture capitalists and issuing a not-so-veiled threat that anyone who invested in Lyft could be blackballed from investing in Uber.

 

Some passengers have also worried whether the company plays fast and loose with riders’ privacy — whether an Uber employee will one day be able to track where you went, and with whom. Uber says it has a strict policy that forbids employees and drivers to check into riders’ travel habits.

 

Still, the new revelations could increase that fear. The idea that a senior executive at the company thought it would be fine to publicly reveal a plan for spying makes you wonder if anything is considered off-limits at Uber — and that may be the sort of deep-seated worry that an apologetic series of tweets can’t do much to fix.

 

 

Uber and its investors believe that the company’s long-term mission is to reinvent transportation, to become not just a taxi service but also a replacement for private cars. That mission can be realized only if people trust the company implicitly and automatically.

 

Mr. Dawson noted that Uber wasn’t in any serious danger of losing it all. It will surely keep growing, at least for the foreseeable future. The trouble may come when Lyft and other rivals become a more dominant force in a larger share of Uber’s markets.

 

“In places like San Francisco, where you have an abundance of options for ride-sharing, this is more likely to affect people’s willingness to use Uber,” he said. “In other places right now, people may not have much of a choice.”

 

Uber wouldn’t be the first start-up to see its early success overshadowed by problems with its culture and image. Consider Myspace, the once fast-growing social network whose rise was marked by internal struggle, and with a failure to take its millions of mostly teenage users’ privacy very seriously.

 

Myspace’s problems left a wide opening for a more disciplined start-up to take over social networking — an opportunity that Facebook was happy to exploit.

 

During its subsequent rapid rise, Facebook, too, was often the subject of outrage by its users over the indiscriminate way it seemed to alter people’s privacy settings. But brushes with users eventually prompted a shift in tone by the company.

 

 

Today, Facebook takes pains to offer plenty of warning to people about changes to its privacy options, and when it introduces products — like a new location-sharing app — it often leads its marketing pitch with its privacy options.

 

“I think that there’s a lesson there for Uber,” said Mark Rogowsky, a Silicon Valley entrepreneur who has closely followed the battle between Lyft and Uber. “Uber today is at the stage where Facebook was several years ago — they’re growing ridiculously fast, and we’re all wondering whether this will be the moment that they see they need to make a change.”

 

He added, “We just don’t know yet.”

 

source: http://www.nytimes.com/2014/11/19/technology/uber-a-start-up-going-so-fast-it-could-miss-a-turn.html?_r=0

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I can knock them, I haven't used Uber, I consider them a Scab Cab. Friends that have used this 'ride sharing service' have given them high marks.

 

That said, Time has documented some concerns. Including a driver attacking a passenger with a claw hammer!

 

http://time.com/3592098/uber-controversy/

 

As do I Armadillo....

 

http://blogs.browardpalmbeach.com/pulp/2014/08/uber_is_violating_palm_beach_countys_vehicle-gor-hire_rules_officials_say.php

 

http://www.bizjournals.com/southflorida/news/2014/10/17/broward-county-cracks-down-on-uber.html

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Why would any insurance company cover someone for an activity they aren't paying for? That's why there are commercial insurance policies. "Ride sharing" is all about skirting rules and regulations, like having the proper insurance coverage. These things cost money and there's a reason for that.

Uber, Lyft and AirBnB are all the same, companies that are trying to avoid paying their part of what needs to be at the same time trying to make money off the rest of us. Play by the rules and let's see how long those companies will last.

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Guest boiworship08

These companies represent an intrusive technology. I wasn't impressed with my one Uber ride; but I use Lyft all the time where I live and it's been fantastic. I'm hooked. The last cab I took was driven by someone who looked and acted like a terrorist. I also hate watching the damn meter adding up the dollars. If they try to get rid of ride sharing in many cities, like mine, there'll be a consumer outcry for sure.

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Why would any insurance company cover someone for an activity they aren't paying for? That's why there are commercial insurance policies. "Ride sharing" is all about skirting rules and regulations, like having the proper insurance coverage. These things cost money and there's a reason for that.

Uber, Lyft and AirBnB are all the same, companies that are trying to avoid paying their part of what needs to be at the same time trying to make money off the rest of us. Play by the rules and let's see how long those companies will last.

 

 

 

Uber bought a commercial auto policy that covers drivers and riders once the ride is ordered and then stops when the ride is over. When the ride is over the driver's own insurance on the car "takes over" again. Actually, Uber's insurance limits are higher than taxi companies coverage. Haven't used Uber yet as they aren't in my area yet so I can't comment on the service. But the taxis in my area aren't very responsive. Competition might be good

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I don't take cabs very much. It's been years. I avoid them like the plague if I can help it. However, because of flights that were generated out of Miami in the middle of the night, I used the local cab company several times recently. I was surprised how efficient they have become. The dispatcher answered immediately, they arrived within 10 mins of the call, the fair was within one dollar of the quote, and you can track them by GPS using your cell phone, and the system called me to tell me the driver had turned up my street, then once again when he was out front. Uber might be a little cheaper, I haven't checked, they wanted credit card information to sign up first, but I still stand with the other poster who called them a 'scab cab'. In my area, there has been a lot of push back from Broward County towards Uber. For me at least, this goes way beyond questions of insurance. Numerous questions and concerns would probably keep me from ever using them.

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Uber bought a commercial auto policy that covers drivers and riders once the ride is ordered and then stops when the ride is over. When the ride is over the driver's own insurance on the car "takes over" again. Actually, Uber's insurance limits are higher than taxi companies coverage. Haven't used Uber yet as they aren't in my area yet so I can't comment on the service. But the taxis in my area aren't very responsive. Competition might be good

 

someone speaks the truth finally

 

if you haven't used uber or know enough to learn about it on line, don't make false statements

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Well Jimboi, try Ubering next time you leave your swanyk hotel when in Vegas:

 

 

Company faces first state-wide ban in U.S. as court rules that is operating “in all ways” like a taxi company.

 

Ride-sharing app Uber Technologies Inc. has been forced to suspend operations in Nevada after a preliminary court order.

 

A Washoe Country District Court granted the Nevada Transportation Authority’s request for an injunction, saying the company’s refusal to comply with state laws on carrying passengers could threaten public safety, Reuters reported.

 

Uber spokeswoman Eva Behrend said that the court’s decision was “unfortunate” and would threaten 1,000 jobs in the state. She added that “we remain committed to working with Nevada’s leaders to create a permanent regulatory framework that affords Nevadans the flexibility and innovation offered by Uber.

 

http://fortune.com/2014/11/28/uber-suspends-activities-in-nevada-after-injunction/

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  • 2 weeks later...

Guess you better add Delhi to the list:

 

The Delhi state government banned Uber Technologies Inc. immediately from operating in the Indian capital after a passenger accused its driver of rape.

 

The company is also “blacklisted” from providing transport services in the future, according to a statement from Delhi’s Transport Department. Uber’s co-founder today joined Indian Home Minister Rajnath Singh in vowing justice for the victim, 26, who told authorities she fell asleep in the taxi two days ago and woke up to find the driver molesting her.

 

“What happened over the weekend in New Delhi is horrific,” Travis Kalanick, Uber’s chief executive officer, said in a blog post. “We will do everything, I repeat, everything to help bring this perpetrator to justice and to support the victim and her family in her recovery.”

 

The ban and rape allegation threatens to hurt Uber’s business in India, its largest market outside the U.S. by number of cities. It comes days before the second anniversary of the December 2012 gang rape and murder of a student in a moving Delhi bus, which shocked the nation and prompted India to tighten rape laws.

 

http://www.bloomberg.com/news/2014-12-08/delhi-uber-driver-accused-of-rape-had-prior-rape-charges.html

 

And, Uber does very thorough background checks:

 

BACKGROUND CHECKS YOU CAN TRUST

 

Every ridesharing and livery driver is thoroughly screened through a rigorous process we’ve developed using constantly improving standards. This includes a three-step criminal background screening for the U.S. — with county, federal and multi-state checks that go back as far as the law allows — and ongoing reviews of drivers’ motor vehicle records throughout their time on Uber.

READ MORE

 

https://www.uber.com/safety

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It'd take too long for me to find the link, but from what I've seen elsewhere (mostly sites frequented by women) Uber is a risky choice for women, period. I've even seen a statement from an Uber driver that he would not want his female loved ones using Uber because of personal security concerns. Background checks are only as good as the database used and the arrests and convictions. I'm not sure how meaningful an arrest without a conviction is anyway. Many people get away with assaults and the like -- those usually specifically aimed at women, like domestic violence and sexual assault especially -- without ever seeing the criminal justice system.

 

Also, a business whose executive threatens to out and doxx [reveal personal information of] a female journalist giving it a hard time over the personal security issue is not a business I wish to support or frequent.

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http://ww2.hdnux.com/photos/25/50/64/5672233/16/920x920.jpg

 

How'd you like this guy shlepping you around late at night?

 

(Syed Muzaffar, charged today with vehicular homicide in San Francisco whilst driving for Uber.)

 

Elsewhere:

 

In Portland, Ore. Uber began operating illegally on Friday night and could face penalties, according to the city’s transportation bureau, including $1,500 for being caught the first time, $2,500 for a second offense and $5,000 thereafter. Portland isn’t happy: the city’s transportation commissioner Steve Novick said, “They think they can just come in here and flagrantly violate the law? This is really amazing. Apparently, they believe they’re gods.”

 

A court challenge against Uber in the Netherlands resulted this week in an injunction against the ride-sharing service, with a court saying the company can’t work with drivers who don’t have a license. Licensed taxi drivers, and drivers who don’t seek payment, can still drive for the service.

 

Uber has always faced a tough market in Germany, where the standard taxi cab is a Mercedes-Benz luxury sedan and Uber fancy cabs don’t stand out. And in September, courts in Berlin and Hamburg ruled the company did not comply with German laws and officially banned the service from using unlicensed taxi drivers.

 

Toronto authorities argued last month that Uber is “jeopardizing public safety” and is getting ready to fight the ride-sharing service in court.

 

Nevada issued a statewide ban against Uber last week, with a court arguing the company operates like a taxi business. Uber halted operations in the state.

 

http://time.com/3623241/uber-battles/

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NEW YORK (CNNMoney)

Uber tracks and analyzes a lot more than you'd think -- from your one-night stands to the prevalence of prostitutes in your favorite pick-up location.

But Uber is in damage control mode, under intense scrutiny for its aggressive tactics and threatening journalists. And that means it has been pulling down some of its most interesting (and sometimes edgy) blog posts.

The ride service company's #UberData blog is now squeaky clean.

Among the missing posts: A 2011 study that finds people who are located in the San Francisco neighborhoods with the most prostitution, theft, burglary and alcohol-related crimes order the most Uber rides.

Uber recently took down the blog post, but a cached version is still available online.

 

Better be careful taking your scab cab rides back to your Private Jet!

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Uber remains to be classy.

 

After an armed gunman took patrons of a Sydney chocolate shop hostage during rush hour Monday morning, the transportation company Uber quadrupled its fares for panic-stricken customers fleeing the central business district.

 

It charged a minimum of $100 ($82 U.S. dollars) to escape.

 

As the Sydney Opera House and other buildings were evacuated and images flashed on TV screens of hostages holding a flag bearing the message “There is no God but Allah” and “Mohammed is the messenger of God,” Uber tweeted it was raising prices.

 

The company has defended what it calls “surge-pricing” as necessary to encourage more drivers to pick up passengers when demand is high.

 

Within an hour, Uber backtracked after the media publicized customer complaints of price-gouging.

 

http://www.washingtonpost.com/news/morning-mix/wp/2014/12/15/uber-backtracks-after-jacking-up-prices-during-syndey-hostage-crisis/

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Uber remains to be classy.

 

After an armed gunman took patrons of a Sydney chocolate shop hostage during rush hour Monday morning, the transportation company Uber quadrupled its fares for panic-stricken customers fleeing the central business district.

 

It charged a minimum of $100 ($82 U.S. dollars) to escape.

 

As the Sydney Opera House and other buildings were evacuated and images flashed on TV screens of hostages holding a flag bearing the message “There is no God but Allah” and “Mohammed is the messenger of God,” Uber tweeted it was raising prices.

 

The company has defended what it calls “surge-pricing” as necessary to encourage more drivers to pick up passengers when demand is high.

 

Within an hour, Uber backtracked after the media publicized customer complaints of price-gouging.

 

http://www.washingtonpost.com/news/morning-mix/wp/2014/12/15/uber-backtracks-after-jacking-up-prices-during-syndey-hostage-crisis/

 

Interesting, but not surprising. Will Uber survive? time will tell, but there are leaks, the ship is listing, and taking on water.

 

http://www.huffingtonpost.com/david-sable/uber-or_b_6213902.html

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I've ubered too many times to count. Probably 50+ and all of them have been A+. The surge pricing is real but you're notified that you're in the surge before you request a ride so it's never a surprise. You can get a price estimate that comes as a range that I've found to be reliable. And because the driver doesn't know your destination until you're in the car and clicks his device to start the trip, there's no more "I don't want to go downtown…or uptown…or to the airport".

 

It's surely not perfect but it's a pretty cool innovation linking these stupid devices that make us stay connected 100% of the time and never get more than 3 feet away from our bodies, with a routine consumer need. Maybe I'm scabbing. But I like it.

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Well you won't be able to scab in France Mr. Chebaz:

 

PARIS—Uber Technologies Inc.’s regulatory problems deepened Monday when France became the latest country to say it would ban one of the car-hailing company’s main services. Meanwhile, taxis took to the streets in a protest against the U.S. company’s “unfair competition.”

 

The French government said the company’s Uberpop service that uses drivers without professional licenses is “illegal.” Officials said they would move quickly to apply a new transport law that will take effect on Jan. 1 and stiffens penalties for operating such services.

 

WallStJournal

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Uber is a great option!

 

A Boston man working as an Uber driver is facing charges that he raped and kidnapped a young woman that had summoned the ride-sharing service earlier this month, authorities said.

 

Alejandro Done, 46, was held without bail at his arraignment in Cambridge District Court on Wednesday, where he pleaded not guilty to charges of rape, assault to rape, kidnapping, and two counts of assault and battery, according to a statement from Middlesex District Attorney Marian T. Ryan’s office.

 

Done allegedly picked up the woman on Tremont Street in Boston at around 7:30 p.m. on Dec. 6. She had been out with friends and summoned an Uber driver to pick her up from the residence, and take her to her home in Cambridge, according to investigators.

 

Through Uber, a smartphone application, customers can contact drivers and pay them directly.

 

When the woman was in the car, Done allegedly told her she would need to pay with cash and drove her to an ATM. After she got back into the car, he allegedly drove to a secluded area, Ryan’s office said.

 

Done then allegedly stopped and jumped into the back seat, and struck the woman. He allegedly strangled her, locked the car doors to keep her from escaping, and covered her mouth so she could not scream, prosecutors said in the statement.

 

http://www.bostonglobe.com/metro/2014/12/17/uber-driver-accused-rape-kidnapping-customer/KYnOQczKFqggfbnri2FpGL/story.html

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