Uber

[[File:Uber_Protest_Portland_(16089571079).jpg|thumb|right|165px|The 2015 Portland, Oregon anti-Uber protest.]]
{{business}}
{{cquote|In fact, Uber and Lyft are not making any profits at all. On the contrary, the companies have been haemorrhaging cash for years, undercharging users for rides in a bid to aggressively expand their market shares worldwide. Squeezing drivers’ salaries is not their main strategy for becoming profitable. Doing so merely slows the speed at which they burn through money. The truth is that Uber and Lyft exist largely as the embodiments of Wall Street-funded bets on automation, which have failed to come to fruition.|||Aaron Benanav<ref>[https://www.theguardian.com/commentisfree/2020/aug/24/gig-economy-uber-lyft-insecurity-crisis Why Uber's business model is doomed] by Aaron Benanav (24 Aug 2020 02.00 EDT) 'The Guardian''.</ref>}}
'''Uber''' is a controversial 
[[lobbying|taxi company]]
 "ride-sharing" company (but [[bullshit|definitely-not a taxi]] company) — though rides are not actually shared — which works through a phone app and is best known for its rapid growth and the severe backlash to its spread, particularly its opposition from traditional yellow-car taxis.<ref>[http://www.bbc.co.uk/news/world-us-canada-33281422 All you need to know about Uber] (9 July 2015) ''[[BBC]]''.</ref> 

==Background==
Uber currently does business in 57 countries, and has been heavily criticized for its performance and business tactics.<ref>[http://www.managementtoday.co.uk/news/1354165/france-charges-uber-bosses-illegal-practices/ France charges Uber bosses over 'illegal' practices: French resistance to the taxi-hailing app intensifies, but Uber remains defiant] By Adam Gale Wednesday, 01 July 2015 ''Management Today''.</ref> In many jurisdictions, taxicabs have been highly regulated and licensed, supposedly to protect public health and safety. In some areas, the licenses command very high prices.<ref>See, for example, the Wikipedia article on {{wpl|Taxicabs of New York City||.}}</ref> The licenses create an [[oligopoly]] market, exclude competition, and raise prices, which gives the license holders a comfortable and reliable living. 
By contrast, Uber doesn't require its drivers to have taxi licenses like 
other normal
 taxi drivers because they totally aren't taxi drivers and instead, as Uber claims, are a "ride sharing service."

==Criticisms==
{{cquote|I think it’s worth it. Violence guarantee[s] success. And these guys must be resisted, no? Agreed that right place and time must be thought out.|||Travis Kalanick, Uber CEO in 2016<ref>[https://www.theguardian.com/news/2022/jul/10/violence-guarantees-success-how-uber-exploited-taxi-protests 'Violence guarantees success': how Uber exploited taxi protests: Leak suggests former CEO believed there was an upside to attacks on drivers as firm campaigned for law changes] by Felicity Lawrence & Jon Henley (10 Jul 2022 12.00 EDT) ''The Guardian''.</ref>}}
{{cquote|Get some sleep when you can. Remember that everything is not in your control, and that sometimes we have problems because, well, we’re just fucking illegal.|||Nairi Hourdajian, Uber's head of communications in 2014<ref>[https://www.washingtonpost.com/business/2022/07/10/uber-taxi-driver-violence/ Uber leveraged violent attacks against its drivers to pressure politicians: In push for global expansion, company officials saw clashes with taxi cab workers as a way to win public sympathy, a trove of new documents shows] by Aaron C. Davis et al. (July 10, 2022 at 12:00 p.m. EDT) ''The Washington Post''.</ref>}}
[[File:Travis Kalanick - Disrupt SF 2012 (7979997908).jpg|thumb|right|165px|Kalanick: ex-CEO of Uber;<ref>[http://fortune.com/2017/02/24/travis-kalanick-must-go/ Travis Kalanick Must Go] by Ellen McGirt (Feb 24, 2017) ''Fortune''.</ref> Disrupt = "fucking illegal"]]
Uber's business was built on 
stealing
 copying technical innovations from Lyft, its competitor, while shrewdly observing that every Lyft trip is "a criminal misdemeanor" due to the commercial licenses and commercial insurance.<ref name=edelman>[https://hbr.org/2017/06/uber-cant-be-fixed-its-time-for-regulators-to-shut-it-down Uber Can’t Be Fixed — It’s Time for Regulators to Shut It Down] by Benjamin Edelman (June 21, 2017) ''Harvard Business Review''.</ref> The observation by Kalanick that everything Uber did was illegal made it difficult for their lawyers to advise which illegal acts were OK and which were not.<ref name=edelman/> For example, Uber's Chief Legal Officer Salle Yoo approved Uber's "Greyball" software (which concealed the company’s practices from government investigators)<ref>Julia Carrie Wong, [https://www.theguardian.com/technology/2017/mar/03/uber-secret-program-greyball-resignation-ed-baker Greyball: how Uber used secret software to dodge the law].''The Guardian'', 3 March 2017.</ref> and even reportedly participated in the hiring of a private investigator to interview friends and colleagues of litigation adversaries."<ref name=edelman/><ref>[http://www.uberscandals.org/category/managers/salle-yoo/ Category: Salle Yoo. Blocked regulators’ investigations by sending bogus data] ''Uber Scandals''</ref><ref>[https://www.nytimes.com/2016/07/26/nyregion/investigation-of-conservationist-conducted-on-ubers-behalf-crossed-the-line-judge-rules.html Thinking About Suing Uber? Let This Be a Warning.] by Benjamin Weiser (July 25, 2016) ''[[The New York Times]]''.</ref> Harvard Business School Professor Benjamin Edelman has concluded that Uber's business model is basically criminal and should be punished though existing laws and massive fines (up to hundreds of dollars per ride).<ref name=edelman/>

Critics of Uber point out their drivers' lack of training in contrast to regular taxi drivers who do undergo training.<ref name="bbcrights">[http://www.bbc.co.uk/news/business-33699430 Uber facing legal action in UK over its workers' rights] (29 July 2015) ''[[BBC]]''.</ref> Furthermore, the drivers themselves have protested the way that they are treated by the company<ref name="bbcrights"/> because they are considered "independent contractors" so they are not protected by labor laws and must go to a company-chosen arbitrator at $3,500 a day plus a $2,500 retainer if they wish to have any labor issues resolved in court.<ref>[http://www.bloomberg.com/news/articles/2015-09-24/uber-s-plan-to-keep-driver-complaints-out-of-court Bloomberg - Uber plans to keep Driver Complaints out of Court]</ref>  They must pay the fees of the court arbiter, the opposing counsel, and their own counsel even if they win.

Being an Uber driver tends to average out at $14 an hour, about half of what the average taxi driver makes, according to drivers,<ref>[https://www.glassdoor.com/Hourly-Pay/Uber-Driver-Hourly-Pay-E575263_D_KO5,11.htm Glass Door - Average Uber Driver Salary]</ref><ref>[http://bgr.com/2015/05/13/uber-driving-salary-costs-insurance/ Uber Salary by drivers after costs]</ref><ref>[http://www.businessinsider.com/how-much-uber-drivers-make-in-each-city-2015-7 Uber and Lyft Salaries per city]</ref> while Uber contends that drivers make an average of $25 an hour with a median of $90,000 a year.<ref>[https://www.washingtonpost.com/news/innovations/wp/2014/05/27/ubers-remarkable-growth-could-end-the-era-of-poorly-paid-cab-drivers/ The Washington Post Reports Uber's Claimed Salary]</ref>  The fine print is that drivers must maintain their vehicle, pay appropriate vehicle taxes, gas, tolls, vehicle registration, and other employment taxes.  To put that into context one would need to work 27 hours a day, 365 days a year, in order to make the median estimated Uber salary. Do note the fact that this is mathematically impossible.<ref>[https://web.archive.org/web/20160324000414/http://citypaper.net/uberdriver/ I was an undercover Uber driver] by Emily Guendelsberger (05/07/2015) ''City Paper'' (archived from March 27, 2016).</ref> A 2018 MIT study of Uber and Lyft drivers found that net profit for drivers was "very low", with a median profit of US$3.37/hour with 74% of drivers earning less than the minimum wage in the state in which they operated.<ref name=lomas>[https://beta.techcrunch.com/2018/03/02/mit-study-shows-how-much-driving-for-uber-or-lyft-sucks/ MIT study shows how much driving for Uber or Lyft sucks] by Natasha Lomas (March 2, 2018) ''TechCrunch''.</ref> The study also found that drivers had a negative impact on taxation due to how the mileage deduction affects taxes in the US.<ref name=lomas/>

Uber's interest in autonomous cars might be motivated by a desire to replace its current (underpaid, overworked, untrained and complaining) workforce.<ref>[http://www.businessinsider.com/why-uber-is-investing-in-autonomous-cars-2015-8?IR=T Why Uber is developing autonomous cars] Jonathan Camhi (Aug. 27, 2015, 11:12 PM) ''Business Insider''.</ref> If successfully implemented, this could have the effect of eliminating ten million jobs.<ref>[http://zackkanter.com/2015/01/23/how-ubers-autonomous-cars-will-destroy-10-million-jobs-by-2025/ How Uber’s Autonomous Cars Will Destroy 10 Million Jobs and Reshape the Economy by 2025] by Zack Kanter</ref> 

On top of that, the woefully inadequate background checks for prospective drivers have resulted in numerous reported instances of Uber drivers assaulting, [[Rape|raping]] and even kidnapping passengers who hire rides from the service.<ref>[http://www.whosdrivingyou.org/rideshare-incidents Who's Driving You? Reported List of Incidents Involving Uber and Lyft]</ref>  Other complaints have run the gamut from reports of drivers leaving the meters on long after their ride is complete without Uber taking any action, unexplained mystery fees that can more than double the agreed fare after the ride, "surge pricing" that can be up to $20 per mile traveled, and some drivers attempting to take advantage of riders paying in cash when drive totals [[Bullshit|somehow]] happen to be higher than the cash on hand.<ref>[http://www.consumeraffairs.com/travel/uber.html Consumer Affair - Uber Complaints]</ref><ref>[http://www.sitejabber.com/reviews/www.uber.com Site Jabber - Uber's 13% rating]</ref>

One notable incident happened in Los Angeles in 2014, where a woman was taken to an abandoned lot instead of her home and Uber only apologized for the "inefficient route"!<ref>Gawker.com: [http://archive.ph/http://valleywag.gawker.com/uber-calls-womans-20-mile-nightmare-abduction-an-ineff-1645819700 archive.ph], [http://web.archive.org/web/*/http://valleywag.gawker.com/uber-calls-womans-20-mile-nightmare-abduction-an-ineff-1645819700 web.archive.org] Uber Calls Woman's 20-Mile Nightmare Abduction an "Inefficient Route"]</ref>

Another, more prominent, area of criticism for Uber has been their tendency to price gouge, particularly on holiday nights.<ref>[http://www.nydailynews.com/news/national/uber-customer-outraged-billed-539-18-mile-ride-article-1.1997960 Uber customer outraged over $539 bill for 18-mile ride caused by 'surge pricing']</ref> Known as 'surge pricing', this includes raising their rates by as much as 900% of the normal rate on various special days of the year.<ref>[http://www.nbcbayarea.com/news/california/Uber-Surge-Pricing-on-New-Years-Eve-Sparks-Social-Media-Maelstorm-364005661.html Uber Surge Pricing on New Year's Eve Ignites Social Media Maelstrom], "However, in some places, New Year’s Eve surge pricing led to rates nine times the normal price – and customers were not pleased."</ref><ref>[http://www.ibtimes.com/uber-issues-holiday-reminder-users-surge-pricing-will-be-effect-1717023 Uber Issues Holiday Reminder To Users: Surge Pricing Will Be In Effect]</ref> This has tended to create backlash among consumers and consumer advocacy groups alike, as it tends to especially take advantage of vulnerable partygoers who may be too intoxicated to notice the price hike.<ref>[http://time.com/4165410/uber-new-years-eve-price-surge-rides/ Uber Users Are Complaining About Pricey New Year’s Eve Rides]</ref>

Uber was the subject of an independent investigation into its corporate culture of sexual harassment, discrimination, and retaliation.<ref>[https://www.recode.net/2017/6/13/15794412/read-entire-investigation-uber-culture-management-ethics-eric-holder Read the full investigation into Uber’s troubled culture and management: Uber released the findings of an external investigation to its staff at an all-hands meeting today.] by Meghann Farnsworth (Jun 13, 2017, 2:41pm EDT) ''recode''.</ref>  The investigation eventually led to the departure of founder and CEO Travis Kalanick, as well as other changes to Uber's organization.<ref>[https://www.nytimes.com/2017/06/21/technology/uber-travis-kalanick-final-hours.html Inside Travis Kalanick’s Resignation as Uber’s C.E.O.: At a Chicago hotel on Tuesday, two venture capitalists presented Mr. Kalanick with a list of demands, including his resignation by the end of the day.] by Mike Isaac (June 21, 2017) ''The New York Times''.</ref> Is it any surprise that such a man would support [[Donald Trump|a President known for being abusive towards women]]?<ref>Mike Isaac, [https://www.nytimes.com/2017/02/02/technology/uber-ceo-travis-kalanick-trump-advisory-council.html Uber C.E.O. to Leave Trump Advisory Council After Criticism]. The New York Times, 2 February 2017.</ref>

On 23 September 2017, London revoked Uber's license.<ref>[http://www.dw.com/en/ubers-london-license-to-be-suspended-uber-to-appeal/a-40639387 Uber's London license to be suspended, Uber to appeal]. dw.com via AFP, Reuters, and AP.</ref>

It was revealed that the Apple Uber app was given a special permission by Apple to screen capture phones using the Uber app.<ref>[http://nordic.businessinsider.com/uber-iphone-app-secret-access-sensitive-apple-features-2017-10?r=US&IR=T Apple gave Uber's app 'unprecedented' access to sensitive Apple features that can record iPhone screens], ''Business Insider'', October 5, 2017</ref>

Uber admitted to shareholders that they could "make any model work" following European laws requiring Uber drivers to be classified as full employees rather than contractors. This is despite ''years'' of [[deceit|claims]] by Uber that classifying Uber drivers as full employees entitled to benefits would force them to lay-off 75% of their American workforce.<ref name="vice">[https://www.vice.com/en/article/pkpkny/uber-ceo-admits-it-can-make-any-model-work-after-years-denying-employment "Uber CEO Admits It 'Can Make Any Model Work' After Years Denying Employment"] - ''VICE''. Written by Edward Ongwesso, Jr. on January 11th, 2022.</ref> Perhaps the most notorious instance of this is where Uber successfully carved an exemption for itself in California's Proposition 22 that required gig workers to be classified as employees. Uber claimed that it would have to lay off 926,000 drivers if the proposition followed through.<ref name="vice"/> This is quite clearly [[bullshit]] in light of recent admissions.

==External links==
*[http://www.uberscandals.org/ Uber Scandals]

==References==
{{reflist|2|80%}}

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