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Category: RideShareRevolution

RideSharingRevolution

  • Uber Is Not Happy with NYC Mayor Bill de Blasio

    Uber Is Not Happy with NYC Mayor Bill de Blasio

    Like many cities, New York City has a powerful contingent that’s none too pleased with Uber and other on-demand ride services.

    The City Council is set to vote on a proposal that would cap Uber, putting a freeze on new drivers. According to the bill, the reason for the freeze is so the city can run a study on traffic patterns.

    Of course, Uber says the move is “less about traffic congestion than it is about political contributions.”

    As the NYT puts it, “the yellow-cab industry, which includes some of Mr. de Blasio’s most prolific campaign contributors, has pressured the administration to clamp down on Uber, a grave threat to owners amid the faltering values of the yellow-taxi medallion.”

    The bill, which has the backing of the Taxi and Limousine Commission, also has the support of another powerful NYC entity – the mayor.

    Bill de Blasio is throwing his weight behind the measure, citing concerns over worsening Manhattan traffic.

    And Uber is trolling the hell out of him.

    In New York City, Uber has added a new ride option inside its app – the “de Blasio”

    It’s not a real ride option, of course, just a way for Uber to show how long it would take to get a ride if de Blasio’s Uber freeze went into effect.

    Uber hopes that it will prompt people to speak out on Uber’s behalf.

    “Mayor de Blasio and members of the City Council are supporting a bill that would cap Uber in New York City. This means that wait times for Uber rides would double or even triple, and more than 10,000 New Yorkers would lose job opportunities overnight,” says Uber in an online petition.

    “Riders would experience less reliable service in the form of longer wait times and higher prices. Services like uberPOOL would also suffer, potentially reversing any traction gained on using carpool rideshare options to target congestion

    “New York overall would not see reduction in congestion from capping for-hire vehicles using Uber but instead would halt progress made through technological innovation over the past few years. Uber’s technology has helped expand service to those who were previously underserved, providing a safe and reliable transportation option to all New Yorkers while looking to a future with fewer cars on the roads — not more.”

    The council vote is expected as early as next week.

  • Uber Has a New Option for the Elderly and Disabled

    Uber Has a New Option for the Elderly and Disabled

    Uber is testing a new ride option that caters to the elderly and the disabled.

    It’s called UberASSIST, and it’s launching in Los Angeles.

    “At Uber, we strive to create transportation options that fit everyone’s needs. Today we are announcing a new option that will allow riders needing an extra hand to request safe and reliable rides at the tap of a button — uberASSIST,” says the company in a blog post. “uberASSIST is designed to provide additional assistance to members of the senior and disability communities. Driver-partners are specifically trained by Open Doors Organization to assist riders into vehicles and can accommodate folding wheelchairs, walkers, and scooters.”

    According to Open Doors, it’s dedicated to “creating a society in which persons with disabilities have the same consumer opportunities as non-disabled persons. ODO strives to teach businesses how to succeed in the disability market while at the same time empowering people with disabilities.”

    According to Uber, uberASSIST’s cost is the same as uberX, and will appear on your Uber app when you enter the ASSIST code into your promotions section.

    This is an interesting move from Uber, which has faced lawsuits in recent months over its treatment of disabled riders.

    Uber has said that it “was built to expand access to safe, reliable transportation options for all, including users with visual impairments and other disabilities,” and that it “seeks to make transportation options available to all individuals.” But the cruz of Uber’s argument against the aforementioned lawsuits involved the we’re just a technology company defense. As Fortune puts it, “Uber argues that as a technology company, it is not subject to laws regulating public transit and other transportation providers, such as the ADA, or required to provide accessible vehicles or accommodations.”

  • Google Tests Waze-Powered Ride Service

    Google is testing a Waze-powered carpooling program in Israel, according to multiple reports.

    The service, called RideWith, will let people pay drivers a “small fee for a ride to and from work,” reports Reuters. The service launched today in Tel Aviv.

    So, is Google jumping into the on-demand ridesharing space – and does Uber now have some big competition?

    Not really – at least not with this specific pilot program. Google has placed limits on it, which make it difficult to call it any sort of a “competitor”. From the Wall Street Journal:

    To avoid regulatory hurdles such as the ones facing Uber, Waze will limit drivers’ ability to generate income by connecting them only with passengers who wish to join the route they take to work and back, and limiting the driver to two rides a day. Drivers will only be able to pick up passengers if they leave from their home neighborhoods and drive toward their workplaces, or the other way round.

     

    Passengers can pay drivers for the ride through their credit cards linked to the app, but only for gasoline and wear and tear. The prices will be determined through the app based on indices for the cost of gas per kilometer and indices for wear and tear.

    “We’re conducting a small, private beta test in the greater Tel Aviv area for a carpool concept, but we have nothing further to announce at this time,” Waze told Reuters.

    No, this isn’t a direct shot at ridesharing companies, but it’s clear that Google is at least testing the waters here. It’s known that both Google and Uber are currently moving in on each other’s turf.

  • Lyft Pays $300K to Settle New York Lawsuit

    Lyft and the New York Attorney General’s office have settled a year-long beef, and Lyft has agreed to pay $300,000 in penalties.

    The settlement resolves a dispute born in July, 2014, when New York Attorney General Eric T. Schneiderman and the New York State Department of Financial Services filed a lawsuit against Lyft claiming the on-demand ride company let its drivers carry folks in Buffalo and Rochester around without proper insurance.

    Around that time, Lyft also faced criticism for its quick launches in Brooklyn and Queens.

    Lyft has agreed to pay $300K in fines, without admitting wrongdoing.

    “I have always been committed to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state,” Attorney General Schneiderman said. “However, it’s critical that the laws put in place to protect consumers and ensure fair competition are not violated in the process. Today’s agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable. I want to thank former Superintendent Lawsky and the Department of Financial Services for their continued partnership in making New York’s marketplace one where all entrepreneurs can thrive under the same set of rules.”

    Here are the other stipulations of the deal, according to the AG’s office:

    As part of the consent order, Lyft drivers will be required to have auto insurance issued by New York-authorized insurers. The insurance must cover drivers while they have the Lyft app turned on to receive requests to pick up passengers through the end of any rides they provide. Additionally, the consent order prohibits Lyft from offering, selling or providing insurance policies that do not comply with the New York Insurance Law.

     

    The consent order also requires Lyft to comply with all other state as well as municipal laws applicable to vehicles-for-hire. Lyft must also inform the Superintendent, the Attorney General, and the counsel of any municipality or other jurisdiction in the state where it intends to launch its service at least three weeks before such a launch.

    “Today’s mutually agreed upon settlement does not require any changes to existing Lyft service in New York. The settlement is part of our continued efforts to return true, peer to peer ride sharing to New York State at large, an effort supported by leaders and consumers across the state,” Lyft said in a statement.

    In other ridesharing news, Uber had a rough week as well.

    Image via Lyft, Facebook

  • Uber Sued for $2M over Teen’s Sexual Assault

    Uber is facing yet another lawsuit after one of its drivers assaulted a passenger.

    The mother of a 13-year-old Virginia girl is suing the ridesharing company for $2 million, claiming that Uber and its lax screening processes are responsible for her daughter’s sexual assault.

    The assault itself is not in dispute. In April, 39-year-old former Uber driver Isagani Morin was found guilty of assault and battery in the case and received a six-month suspended sentence. The lawsuit focuses on Uber’s responsibility in the incident.

    According to the lawsuit, the 13-year-old girl used Uber between 10 and 20 times last October and November – mostly for rides to and from school. Most of the time, Morin was the one to pick her up.

    The complaint states that Morin made unwanted and inappropriate advances toward to girl, including Can I buy you a pair of panties for your birthday? and Age doesn’t matter if two people are in a relationship.

    The abuse allegedly culminated in Morin “reaching backward between the seats and rubbed Child Doe’s inner thigh and asking Child Doe if her mother was home.”

    The lawsuit says that the girl gave Morin a low rating on the Uber app, but he continued to be the one to pick her up.

    In asking for damages, the lawsuit admonishes Uber for its screening practices.

    “Uber failed to properly screen and check the background of Morin before hiring him, and this negligence resulted in the hiring of an individual who exhibited overly aggressive sexual tendencies,” says the complaint. “Uber failed to adequately train Morin. Upon information and belief, Defendant became aware of Morin’s ongoing sexually aggressive tendencies and nonetheless retained him as an employee. Uber either knew or should have known of Morin’s propensity to make unwelcome sexual advances, requests and demands for sexual favors, and other verbal and physical conduct of a sexual nature aimed at minor children by various words and acts.”

    “Uber failed to exercise reasonable care and was negligent in hiring and retaining Morin, a dangerous employee who Uber knew or should have known was a dangerous sexual predator, and who was to harm passengers of the carrier, including Child Doe.”

    Uber’s terms of service state that “UBER DOES NOT GUARANTEE THE QUALITY, SUITABILITY, SAFETY OR ABILITY OF THIRD PARTY PROVIDERS. YOU AGREE THAT THE ENTIRE RISK ARISING OUT OF YOUR USE OF THE SERVICES, AND ANY SERVICE OR GOOD REQUESTED IN CONNECTION THEREWITH, REMAINS SOLELY WITH YOU, TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW.”

    But does this absolve Uber of responsibility for its drivers? The girl’s attorney thinks not.

    “Under Virginia law, employers are liable for their employees,” the mother’s attorney, Jake Denton, told The Daily Beast.

    But are Uber driver employees? Or are they just contractors. Uber says that it’s merely a logistics company – a tech startup that allows ride-wanters to connect with ride-providers. But just this week, a California labor board ruled that an Uber driver was in fact an employee, stating that Uber is “involved in every aspect of the operation.”

    In the case of the 13-year-old Virginia girl, Uber says it is “extremely troubled by these allegations” and it has “cooperated fully with law enforcement.”

    Image via Uber, Facebook

  • Uber Drivers Are Employees, Not Contractors, Says Calif. Labor Commission

    Uber Drivers Are Employees, Not Contractors, Says Calif. Labor Commission

    In a decision that could have far-reaching consequences for Uber and the whole ridesharing industry, the California Labor Commission has ruled that Uber drivers are actually employees.

    According to Reuters, “the ruling earlier this month and filed Tuesday in state court in San Francisco, said Uber is ‘involved in every aspect of the operation.’”

    Of course, Uber has always argued that its more than one million drivers around the world are simply contractors, not employees. As you would expect, Uber is set to appeal this decision.

    Uber drivers have existed in a sort of grey area between employee and contractor.

    As Slate points out, “their hours are flexible—but only to a point. Uber, for example, has threatened to suspend the accounts of drivers who accept less than 90 percent of rides. The same is true of drivers’ control over their work. Uber and Lyft might not make drivers wear uniforms, but the companies do instruct them on other points—how to interact with passengers, what kind of music to play during rides—and threaten to deactivate drivers who don’t meet standards.”

    Uber’s argument has always been that it’s a software company. Uber connects people wanting a ride to those offering a ride. It’s a logistics company. Uber simply connects third-party contractors with customers.

    But this new ruling turns that on its head. Suddenly, Uber could be a true transportation startup with a million employees. Talk about a shift in the business model.

    “The California Labor Commission’s ruling is non-binding and applies to a single driver. Indeed it is contrary to a previous ruling by the same commission, which concluded in 2012 that the driver ‘performed services as an independent contractor, and not as a bona fide employee.’ Five other states have also come to the same conclusion. It’s important to remember that the number one reason drivers choose to use Uber is because they have complete flexibility and control. The majority of them can and do choose to earn their living from multiple sources, including other ride sharing companies. We have appealed this ruling,” said Uber in a statement.

    Image via Uber, Facebook

  • PayPal Extends One Touch Payment Feature To Web

    PayPal Extends One Touch Payment Feature To Web

    PayPal announced the launch of One Touch for Web, enabling users to pay for things around the web without user IDs and passwords after their first login. The feature was first launched on mobile devices back in August.

    Since the mobile launch, merchants including Airbnb, Boxed, Jane.com, Lyft, Munchery, and YPlan have added One Touch to their services.

    “Not only did consumers love the experience, but we heard from many of our merchants that One Touch led to an immediate increase in sales, average order values, customer adoption and loyalty,” said Bill Ready, Senior Vice President, Global Head of Merchant and Next-Generation Commerce at PayPal. “For example, Yplan reported a double digit increase in conversions since using One Touch, and StubHub reported a double digit increase in total sales and transactions through PayPal on iOS with One Touch since enabling One Touch for mobile last fall. And because One Touch enables consumers to pay without entering any payment information even at signup, it helps to increase customer adoption.”

    “With the extension of One Touch for mobile and web browsers, merchants can now offer their customers this same great buying experience across the Web, enabling more seamless and secure shopping,” he added. “Most PayPal merchants will automatically have One Touch enabled for their customers, without needing to do any integration. Consumers that choose to pay via One Touch will soon be able to securely checkout across millions of PayPal enabled websites in a single touch, without having to re-enter their login information. And since we’ve extended the product beyond native mobile, One Touch will soon be available to PayPal’s 165M customer accounts regardless of whether they have the PayPal mobile app.”

    The change has already begun rolling out in the U.S. It will expand internationally over the coming months, the company says.

    PayPal released this infographic illustrating the time and effort One Touch saves:

    According to Reuters, PayPal hopes the feature will reduce the “$4 trillion in merchandise abandoned in retailers’ online shopping carts every year due to complicated checkout procedures.”

    Shopping cart abandonment is indeed still a major issue for online businesses, and things have only gotten worse. Unfortunately, PayPal’s solution will do little to influence one of the biggest reasons people abandon their carts, and that’s shipping costs.

    Last fall, UPS and comScore partnered on a study, which found that as many as 81% of online shoppers in the U.S. indicated free shipping played a major role in their experience. 9 out of ten shoppers said they abandon shopping carts, while 6 out of 10 said they’ve done so after finding out that shipping costs made the price higher than expected. Half said they abandoned carts because their order value wasn’t large enough to qualify for free shipping.

    Other reasons included people not being ready to purchase, but wanting to save the cart for later or wanting to get an idea of the cost for comparison, getting distracted and forgetting to complete a purchase, and preferred payment options not being offered.

    Image via PayPal

  • Uber Driver Accused of Rape Spent 14 Years in Prison

    A Houston Uber driver accused a raping a passenger has a criminal record, and had just been released from prison three years ago, according to reports.

    57-year-old Duncan Eric Burton has been arrested and charged with sexual assault after allegedly taking a woman back to his apartment and raping her in January.

    According to court documents, the last thing the woman remembers is being at a bar with a couple of friends on January 26. According to her friends, she was pretty drunk (“Ill and throwing up”), so they called an Uber and gave the driver (Burton) her address.

    The Houston Press blog picks it up from there:

    The woman told the officer that “the last thing she recalls is being at the club with the two friends, ordering one round of drinks, and then has no recollection of anything after, until waking up the next morning, alone, in an unfamiliar apartment,” according to the affidavit. She went to Memorial Hermann Southwest to have a sexual assault exam conducted.

    When the officer contacted Burton, the Uber driver said that she did not live at the address on her driver’s license, but had moved around the corner, the affidavit states. But when the woman knocked “on an unknown apartment door…a male answered, advising [the woman] that she did not live there,” according to the affidavit.

    Because Burton “was unable to get an exact address” for the woman, he took her to his apartment off Wilcrest Drive, the affidavit states.

    It’s at his apartment where police say Burton “admitted to performing oral sex, vaginal sex, and anal sex with [her].” The victim says she has absolutely no memory of the Uber ride, the sexual assault, or even Burton himself.

    Now, the Houston Chronicle is reporting that Burton had a criminal record. Uber, as you may know, claims to perform extensive background checks on all of its drivers.

    According to the Chronicle, Burton served 14 years for conspiracy to possess with intent to distribute cocaine. He was released in 2012 after serving only part of his original 18-year sentence. And Uber spokesperson told the Chronicle that Burton has passed the company’s background checks.

    Of course, this raises a couple of questions – mainly how? and who let that slide by?

    Watchdog group Who’s Driving You highlights the pickle this puts Uber in:

    “Either this driver slipped past Uber’s criminal background check or Uber did discover his criminal history and decided it was OK to let him drive. Regardless, this case illustrates how trusting Uber to conduct its own criminal background checks amounts to allowing the company to decide whether or not to put this individual behind the wheel. Houston would not have allowed this now alleged rapist to drive. Uber did,” said Dave Sutton, spokesperson for ‘Who’s Driving You?’.

    Uber has called its background check “rigorous”.

    “All Uber ridesharing and livery partners must go through a rigorous background check. The three-step screening we’ve developed across the United States, which includes county, federal and multi-state checks, has set a new standard. These checks go back 7 years, the maximum allowable by the Fair Credit Reporting Act. We apply this comprehensive and new industry standard consistently across all Uber products, including uberX,” said the company in a blog post.

    But it’s not just abut background checks. In Houston, there appears to be a backlog when it comes to getting Uber drivers up to speed with the latest city permits.

    Listen to what and Uber spokesperson told Houston Press:

    “When the city implemented its permitting process, thousands of driver partners were already using the Uber platform to make a living. We have been working closely with the city to move these drivers through the permitting process as quickly as possible, and every week hundreds of drivers complete the process, but the system is not designed to quickly and efficiently issue permits to a large volume of applicants.”

    Apparently, Uber is struggling to get its drivers the proper permits – a permit that likely would not have been granted to Burton.

    “Someone with a negotiated drug conviction on his or her record would not be eligible for a city-issued permit, but could appeal and attempt to receive one,” said Laura Cottingham, deputy assistant director with Houston’s Administration and Regulatory Affairs Department.

    It would be easy to pile this on top of all the other stories about Uber drivers and assault – but this one appears to be a bigger black eye for Uber. This is the first time a convicted felon seemingly slipped through the company’s background checks and wound up (allegedly) raping a passenger.

    Last month, Uber highlighted all the steps it’s taking to improve user safety.

    “Our Safety Product Team is developing more ways to put technology to work to ensure the safety of riders and drivers in key areas. We are initiating research & development on biometrics and voice verification to build custom tools for enhanced driver screening,” it said. The company has also discussed employing lie detectors during the screening process.

    On April 2, the day Uber revoked Burton’s privileges, the company poached Facebook’s Chief Security Officer.

    “We believe deeply that, alongside our driver partners, we have built the safest transportation option in 260 cities around the world,” said Philip Cardenas, Head of Global Safety, in a blog post back in December. “But we have more work to do, and we will do it. Uber is committed to developing new technology tools that improve safety, strengthen and increase the number of cities and countries where background checks are conducted and improve communication with local officials and law enforcement … Our responsibility is to leverage every smart tool at our disposal to set the highest standard in safety we can. We will not shy away from this task.”

    Just last month the story emerged of an Uber driver accused of kidnapping and rape in Philadelphia. Adding to the disturbing nature of the allegations is the fact that Uber only suspended the driver near the end of March, even though the alleged assault took place on February 6. Uber claims that they were not notified of the incident until then and it suspended the driver immediately, so it appears the police may have forgotten to mention it to Uber.

    Still, the incidents continue to pile up, and they’re becoming more and more disturbing.

    Image via Jason Newport, Flickr Creative Commons

  • Lyft Wants You to Get All Chummy with Your Driver

    Lyft Wants You to Get All Chummy with Your Driver

    Lyft wants you to get to know your driver, and vice versa.

    If you’re the type of person who wants to have a conversation with the person who picks you up from the bar (and there are plenty of you out there), you’ll likely dive right in to a new Lyft feature called Lyft Profiles. The on-demand ride service and Uber competitor plans to roll it out soon on iOS, with Android support coming later.

    So, what are Lyft Profiles?

    Exactly what they sound like, really. Both passengers and drivers will be able to create their own profile – the depth of which is rather shallow. If you’re a driver, your profile will include the date you joined, how many rides you’ve given, your star rating, your hometown, and your favorite music. The user profiles will show most of that, minus the ride count. Both profiles will have an open-ended “About Me” section which can be populated however you like. So, if you don’t really want to talk, you can let drivers know that in your About Me section.

    Or you could just not fill out a Lyft profile. They’re going to be completely optional.

    Of course, Lyft’s goal here is to get everyone in the car friendly with each other in the hopes that it will facilitate a better travel environment. And that could work, given both driver and passenger have a genuine interest in striking up conversations about shared interests.

    “In cities with Lyft Line, we’ve heard countless stories of Line passengers connecting over shared interests or acquaintances. Profiles makes unearthing these small-world connections even easier, and is a big step toward our vision of reconnecting people and communities through better transportation,” says Lyft.

    There’s one more interesting thing about Lyft profiles. They’ll allow you to connect to Facebook so that Lyft can tell you if you and your driver have any mutual friends.

    Oh, you know my ex Tina? How do you know Tina?

    Uh…

    That feature is also optional.

    Ride service companies are constantly on the defensive over concerns about their safety. Uber gets all the press attention when it comes to horrible incidents like rape and assault. There have been incidents involving Lyft drivers in the past, but you see much less of that than you do of Uber driver malfeasance. For Uber’s part, the company continues to say that it’s committed to safety, number one, numero uno, before all else, at all costs, seriously.

    But Lyft hasn’t faced the same criticism and scrutiny as Uber. Of course, Lyft’s not worth $40 billion. It appears that until forced to do otherwise, Lyft will continue to play the we’re all buddies card. It’s working.

    Image via Lyft

  • Uber Says It’s Committed to Making the Service Safer, but Is It Capable?

    On any given day, ‘everyone’s private driver’ Uber is dealing with some sort of problem. These include, but are not limited to, drivers being pissed about fare cuts and how they affect their bottom line, taxi companies being pissed that Uber is skirting past rules and regulations, and cities battling the entire Uber operation both at home and abroad.

    These are clearly some big concerns for the company, which continues to raise money at a staggering rate and is now valued at north of $40 million. But the one Uber storyline that dominates discussion, at least from a purely consumer standpoint, is rider safety.

    Rape, kidnapping, and assault tends to attract a lot of attention. Imagine that.

    And it’s this pressure that has forced Uber’s hand in a way. Uber must get serious about customer safety. Over the past year, the company has talked a lot about what it’s doing to make rides safer – but is it working? Is there more it could be doing?

    Here’s a brief rundown of some incidents involving Uber drivers that have occurred in just the past year:

    – A Washington DC Uber ride turned into a Keanu Reeves movie when the driver took his passengers on a high-speed chase with police, about 10 minutes of speeding, running red lights, and sideswiping cars, according to the victim. It all started when a taxi inspector tried to flag down the driver. He reportedly told the passengers that it “wasn’t a real cop” and then proceeded to turn the experience into an episode of Cops.

    – A woman accused her Uber driver of kidnapping and sexual assault, after the driver “took advantage of the situation (she was drunk), and drove her to a cheap motel, which he had visited before, and carried her into the room. He slept the night in the room, and when she awoke, he let her leave, though he asked her to stay, according to the victim,” according to police. He allegedly “fondled her over her clothes and suggested he wanted to have sex, but didn’t force it.”

    – A woman alleged she was briefly kidnapped over a fare dispute.

    – A woman was allegedly raped in the backseat of an Uber driver’s car last July. From the affidavit:

    She passed out in the cab and when she woke, the driver was rubbing her breasts. She then fell back asleep, according to court documents, and woke up again to the sound of car doors locking. The cab had stopped and the driver was feeling her breasts and pulling down her underwear down to her knees. She says she asked the driver to be let out of the vehicle, but he refused and at one point asked if he could go back to her hotel with her. In a follow-up interview with authorities, she said [the driver] briefly penetrated her with his finger or another thin object.

    – In September of last year, an Uber driver reportedly smashed his passenger in the head with a hammer. According to authorities, it was a route dispute gone bad. The driver pulled over and demanded the passenger exit the vehicle. Once he was out, the driver struck him in the side of the head with a hammer and drove away, leaving him “slipping in and out of consciousness on the sidewalk, suffering from severe fractures and trauma to the head,” according to police.

    – An Uber exec used a sort of “God view” mode to track the Uber activity of a journalist. This happened after another Uber exec questioned whether it would be prudent for Uber to go after critical journalists. This whole incident raised a lot of questions about customer privacy, as you can imagine.

    – In December, a Boston Uber driver was charged with battery and rape after he allegedly picked up a woman, took her to a secluded area, and beat her and sexually assaulted her.

    – A San Francisco driver was charged with assault and battery after hitting a passenger. According to Forbes, “[the driver] picked up his passenger in San Francisco’s Castro District early on Nov. 24, and the two began to argue while riding in the car, authorities said. He pulled over, told the passenger to get out, and when the passenger tried to take a photo of the car, he allegedly punched him in the hand and elbowed him in the chest.”

    – A Chicago man allegedly fondled his Uber passenger. “When the woman said she knew how to get to her destination, Patel asked her to sit in the front seat. After she moved to the front, Patel began telling her how pretty she was, and allegedly touched her legs and her breast,” according to the report.

    – The safety issues have been international issues as well. Uber is currently embroiled in a lawsuit over an alleged rape in India. Uber just suspended a driver in France over an alleged sexual assault.

    – Just this week the story emerged of an Uber driver accused of kidnapping and rape in Philadelphia. Adding to the disturbing nature of the allegations is the fact that Uber just now suspended the driver, even though the alleged assault took place on February 6. Uber claims that they were not notified of the incident until this week and it suspended the driver immediately, so it appears the police may have forgotten to mention it to Uber.

    I’ll stop there. ‘Brief’ may have been the wrong word, but it’s important to know what Uber is dealing with here. There are a lot of incidents and sadly, most of them begin with the phrase “A woman claims …”

    In December of last year, following a year of bad press, Uber made a public promise to make the service safer.

    “We believe deeply that, alongside our driver partners, we have built the safest transportation option in 260 cities around the world,” said Philip Cardenas, Head of Global Safety, in a blog post.

    “But we have more work to do, and we will do it. Uber is committed to developing new technology tools that improve safety, strengthen and increase the number of cities and countries where background checks are conducted and improve communication with local officials and law enforcement.”

    That kicked off a so-called “global review to assess the areas where greater investment is required.”

    “Our responsibility is to leverage every smart tool at our disposal to set the highest standard in safety we can,” said Cardenas. “We will not shy away from this task.”

    We’ll talk more about the technology later, but let’s just say that Uber’s investments in safety have leaned more toward personnel than tech.

    A Safety Update

    Which leads us to Uber’s new update on what it’s doing to improve safety. Phillip Cardenas is back with an update from the Uber safety team, wherein he talks about some actions the company has taken and some it plans to take. Spoiler alert: there are a lot of boards, teams, panels, and audits.

    Here’s what Uber says it will do and what it has done in terms of responding and reviewing safety-related incidents, on a human level:

    SAFETY ADVISORY BOARD
    Uber will establish a permanent global Safety Advisory Board to work with us on an ongoing basis. The board will review our safety practices and advise on our roadmap for adding safety features to the platform. As part of this process, we are already engaging with outside experts to help us create the strongest board possible. We will continually embed their recommendations and independent guidance into our safety roadmap.

    QUALITY ASSURANCE
    Working with law enforcement and security experts, we have created the Uber Quality Assurance program. Off-duty law enforcement and security professionals will audit activity on the platform to ensure that partners are complying with safety standards, including refusing all street hails and acting in accordance with the Code of Conduct. Their reports will help ensure that any issues are dealt with expeditiously.

    INCIDENT RESPONSE TEAMS
    To quickly respond to safety incidents, we have created Incident Response Teams that are on call worldwide on a 24/7 basis. These are specially trained groups that investigate and respond to serious safety concerns that may occur. The teams are distributed in regions around the globe and are there for those critical moments when a rapid resolution is needed.

    Uber has also published a new “Code of Conduct” which outlines principles like non-discrimination, no aggressive behavior, and “human kindness”. Not exactly groundbreaking stuff here.

    In the safety update, Uber also touts the fact that all rides are tracked by GPS, that it works closely with law enforcement, and that it’s “confident [its] driver screening program is elevating the standard for the transportation industry.”

    What can Uber do to improve safety?

    When Uber first made its promise to improve safety, it touched on some new tech that could help.

    “Our Safety Product Team is developing more ways to put technology to work to ensure the safety of riders and drivers in key areas. We are initiating research & development on biometrics and voice verification to build custom tools for enhanced driver screening. We are also investing in ways to provide riders the instant ability to communicate with us and their loved ones in the event of an emergency, building on top of our ShareMyETA feature,” said Uber.

    Uber even discussed using lie detectors during background checks. None of these tech advances have materialized – at least for the majority of Uber customers.

    Other apps are looking to make the process of riding with anyone (Uber, taxis, etc) safer. For instance, an app called AsterRide offers instant alerts that notify friends and family when they’re picked up, and sends notifications when thy’ve arrived safely at their destination. Uber should expand on the “ShareMyETA” feature and provide and even more detailed real-time travel log to friends and family of its passengers. They’ve done this in India, but it’s not been shipped to the rest of the world.

    Uber has also instituted an SOS button in its app in India, which allows riders to contact local law enforcement directly from the app in emergencies.

    For Uber’s part, it says it “intends to make these and other new features available in the coming months elsewhere.”

    The company might want to think about turning to a third party for background checks – which are arguably the most important tool it has for building a fleet of safe, well-intentioned drivers. Uber’s current background check process is rigorous, according to the company. But as The Daily Dot points out, there are major advantages to shipping the process out-of-house:

    Moving the process to a third party would create transparency (third parties could create documentation and put it in the public domain for the benefit of interested parties). It also eliminates concerns about potential conflicts. Third parties can focus on determining whether people are safe to drive for the company, period, without having to consider the PR implications or other issues. The use of third-party assurances is common in other industries, and it makes sense for any company that offers a service where strangers provide potentially intimate services.

    What can we realistically expect from Uber?

    Is it unrealistic to expect there to never be an assault or attempted assault inside an Uber car? Uber, like Lyft, like taxis, involve something inherently dangerous at its core – getting in cars with strangers. It’s Uber’s job to do all it can to make sure the stranger who’s driving you around isn’t prone to rape and battery. The problem is that Uber’s entire business model – contract drivers using their own cars with minimal training – isn’t exactly set up to foster a situation where the company knows enough about its employees to know if they’ve accidentally hired a rapist. There’s a giant disconnect between Uber and its workforce.

    Of course, background checks help. But a background check doesn’t turn up the intent to assault.

    And it’s not like Uber is the only transportation company with customer safety red marks on the record. A recent study from the Cato Institute found that in terms of passenger safety, Uber, Lyft, an taxis all offer about the same level of protection.

    Then again, Uber’s schtick is being a cut above taxis.

    Uber is committed to connecting you to the safest ride on the road

    Committed? I guess that’s debatable. Capable? That’s a much tougher question.

    Image via Uber

  • Uber Looks to Build Its Own Navigation, Buys Mapping Company deCarta

    Uber has bought mapping company deCarta, acquiring its tech and its people.

    An Uber spokesperson confirmed the acquisition, which will close later this week, to Mashable:

    “A lot of the functionality that makes the Uber app so reliable, affordable and seamless is based on mapping technologies. With the acquisition of deCarta, we will continue to fine-tune our products and services that rely on maps –- for example UberPOOL, the way we compute ETAs, and others – and make the Uber experience even better for our users.”

    This is definitely the most notable acquisition for Uber, but not the only one. Uber has made several low-profile buys recently, but the company won’t name them.

    deCarta, “the LBS platform company”, is now a part of the on-demand ride company. deCarta offers personalized mapping services, and part of its pitch has always been to differentiate itself from big box mapping like Google or Bing.

    “There’s no reason to sacrifice your own business model, brand or control of your content by opting to use generic consumer mapping services like Google or Bing. deCarta’s LBS platform offers comparable LBS technology but can be customized to fit your company’s needs, giving you the freedom to use the technology as you want,” says deCarta.

    Uber currently relies on Google and Apple maps for navigation, and this appears to be the first big step to weening itself from that dependency. Uber and Google are reportedly moving in on each other’s turf, and it makes sense that Uber would want to develop its own mapping technology – considering routes and navigation are pretty important to a ridesharing company.

    Image via Uber

  • Google, Uber Moving in on Each Other’s Turf?

    Google, Uber Moving in on Each Other’s Turf?

    It’s possible that Google and Uber, two companies which, at least historically, have been friendly, are developing a bit of a rivalry.

    Uber has announced a “strategic partnership” with Carnegie Mellon University that will see the creation of the “Uber Advanced Technologies Center” near the school’s campus.

    “The center will focus on the development of key long-term technologies that advance Uber’s mission of bringing safe, reliable transportation to everyone, everywhere,” says Uber. More specifically, “mapping and vehicle safety and autonomy technology”.

    In other words, Uber is jumping in the self-driving car ring – an arena currently dominated by the folks at Google.

    “We are excited to join the community of Pittsburgh and partner with the experts at CMU, whose breadth and depth of technical expertise, particularly in robotics, are unmatched. As a global leader in urban transportation, we have the unique opportunity to invest in leading edge technologies to enable the safe and efficient movement of people and things at giant scale. This collaboration and the creation of the Uber Advanced Technologies Center represent an important investment in building for the long term of Uber,” said Uber Chief Product Officer Jeff Holden.

    So, it appears that adding autonomous vehicles to its fleet is part of Uber’s “long-term” goal.

    Around the same time Uber was making this announcement, Bloomberg published an exclusive report citing Google’s intentions to take a direct shot at Uber with the formation of its own on-demand car service.

    From Bloomberg:

    Google is preparing to offer its own ride-hailing service, most likely in conjunction with its long-in-development driverless car project. [Google CFO David] Drummond has informed Uber’s board of this possibility, according to a person close to the Uber board, and Uber executives have seen screenshots of what appears to be a Google ride-sharing app that is currently being used by Google employees. This person, who requested not to be named because the talks are private, said the Uber board is now weighing whether to ask Drummond to resign his position as an Uber board member.

    Drummond currently sits on Uber’s board, and Google Ventures has invested hundreds of millions of dollars into Uber in the past. Uber relies on Google Maps. The two are definitely intertwined, and Bloomberg points out that most feel that Google and Uber are obvious partners for a wide range of future endeavors. At least, until now.

    Google did provide this somewhat cryptic statement on Twitter, pointed directly at Bloomberg.

    The Wall Street Journal has put a bit of a wrinkle in the story, however. According to multiple sources cited by the paper, Google’s not really working on an Uber competitor and the whole thing has been “blown out of proportion”.

    From the WSJ:

    But a person familiar with the matter said news that Google is developing an app to rival Uber has been blown out of proportion. The person said a Google engineer has been testing an internal app that helps Google employees carpool to work, and the app isn’t associated with the company’s driverless cars program.

    Two people familiar with the matter said they weren’t aware that Drummond had been asked by anyone to step down and believe he would do so of his own volition if he sees a potential conflict.

    Google recently unveiled what it called the “first real build” of its self-driving vehicle prototype.

    Image via Google+

  • Google Now Just Got A Lot More Useful

    Google Now Just Got A Lot More Useful

    Google Now may be getting a whole lot more useful as Google just announced that it’s integrating with third-party apps on Android. The company has already partnered with over 30 developers to bring new cards into the fold, giving users helpful updates from the apps they use.

    “Starting today, the Google app on Android can help you keep up with all the good stuff in 40 different apps at a glance—it’ll bring you Now cards to help you out with your day-to-day life, giving you information that’s helpful to you, right when you need it,” says Director of Product Management Aparna Chennapragada.

    “In the morning, catch up on news of the day with cards from The Guardian,” she adds. “On your commute, Pandora can give you recommendations for music to play, based on what you like, or you can be reminded to complete your daily French lesson on Duolingo. During your downtime, you can take care of the groceries, with a card from Instacart reminding you to stock up on the things you often order. If you’re planning a trip and looked up places to stay on your Airbnb app but couldn’t make up your mind, you’ll see Now cards from Airbnb for the location and dates you’ve researched. And when you land at an airport, you’ll see a card to order a Lyft.”

    Compatible apps include: Airbnb, Instacart, Pandora, Shazam, Lyft, TripAdvisor, Kayak, eBay, Walgreens, Ford, Waze, Strava, Duolingo, Intuit, The Economist, The Guardian, Belly, Bitcoin Wallet, Redfin, Zillow, Family Locator, Hootsuite, Wattpad, Runtastic Running & Fitness, Runtastic Me: Daily Tracker, Delivery Hero, Hailo, MyTaxi, Busuu, ESPN Cricinfo, Housing, Meru, Shaadi, The Economic Times, Cookpad, SmartNews, Suumo, BookMyShow, and Lincoln.

    These are all, of course, in addition to all the services using Gmail mark-up for Now cards.

    Google lists all of the cards associated with its new partner apps here, and lets you see specifically what each one allows you to do.

    Image via Google

  • Uber Continues to Raise Tons of Money

    Someone just gave Uber a bunch of money, again.

    Bloomberg reports that the on-demand car company has just raised $1.6 billion in convertible debt from Goldman Sachs’ wealth management clients.

    Bloomberg has the specifics on the deal:

    The bond Uber placed with Goldman Sachs’ private clients is a six-year bond that will convert into equity at a 20 percent to 30 percent discount to Uber’s valuation at the time of an initial public offering, people familiar with the situation told Bloomberg News last month.

    The convertible bond carries a coupon that increases over time if Uber hasn’t gone public within 4 years, the same people have said.

    Why wouldn’t these investors want to get it now?

    Barely more than a month ago, Uber raised $1.2 billion – and the company is apparently in talks to add another $600 million to that. This funding round valued the company at over $40 billion.

    Uber is in the process of playing Hungry Hungry Hippos with market share – so cash is needed. It’s looking to expand into more cities all across the world – if it can clear the legal hurdles. The sources who reported this new round of funding suggest that’s what it’ll be used for, along with R&D and “improving safety”.

    Uber just slashed fares in 48 cities across the US, a move that hurts the company’s bottom line, but helps them grab more of the market from competitors like Lyft. Uber’s playing the long game, and it’s currently working.

  • Lyft Ditches Pink, Furry Mustache for Pink, Glowing Mustache

    Lyft is ditching the giant, pink mustache that has adorned all some of its fleet since the company’s launch.

    Don’t worry – the pink mustache is still going to be there. Except now it’s going to be smaller, dash-mounted, and not furry.

    “It was this big giant fuzzy thing. If you were going to an important business meeting, it might not be the best way to roll up … the reality is, people were using it less and less,” Lyft President John Zimmer told Wired in a interview.

    And for the new glowstache?

    It’s “more modern, more fresh, and also more acceptable for everyone,” says Zimmer.

    Cool.

    Image via Lyft, Twitter

  • Yelp Filter Not Catching Biased Reviews

    Yelp Filter Not Catching Biased Reviews

    It may be a new year, but there are still problems with Yelp’s review filter. We’ve been tipped to some research finding reviews featuring promo codes, which would seem to violate Yelp’s guidelines, showing up for Uber and Lyft, as well as a competing taxi service. Yelp’s filter has long been the subject of controversy with small business owners, and these findings highlight yet another issue with it.

    Are you happy with Yelp’s review filter? Do you think it does a good job of eliminating spam? Let us know what you think.

    “We conducted some research that found many customers of Uber are spamming Yelp’s review in order to promote their promo code. These codes work as an affiliate program so whenever a new customer uses the code, then the person gets $5 in Uber credit,” Strategy Response tells WebProNews in an email. “In smaller markets, most of the 5-star reviews for Uber are clearly biases as they are promoting a code. These codes allow the person to receive credit when someone else uses their code.”

    These promo codes got some attention last year when celebrities like Lindsay Lohan, Snoop Dogg, and Neil Patrick Harris were promoting their codes on social media.

    As Strategy Response notes, such a conflict of interest on the part of reviewers is a clear violation of Yelp’s guidelines. This is what Yelp actually says under the “Conflicts of interest” section:

    Your contributions should be unbiased and objective. For example, you shouldn’t write reviews of your own business or employer, your friends’ or relatives’ business, your peers or competitors in your industry, or businesses in your networking group. Business owners should not ask customers to write reviews. Emphasis added.

    While this sort of thing might be fine on a platform like Twitter, Yelp is a different animal. It has direct influence on whether or not people use a business. That’s the whole point. It’s easy to see why reviews with these promos would be a violation of Yelp’s guidelines. They’re obviously biased. The problem is that the filter isn’t doing its job in eliminating them.

    Strategy response found examples in a variety of cities across the U.S. In Louisville, there’s only a single review for Uber, and that review gives the company a five-star review and includes a promo code.

    The same goes for Kalamazoo. In Charleston, 3 of the 4 reviews include a promo code. In Des Moinses, 2 out of the 3 reviews promotes a code.

    You can see an example for Lyft in Raleigh-Durham here.

    Yellow Cab in Austin, which has a one-and-a-half star review, displays this review promoting an Uber user’s code:

    So this is also something that could potentially have an impact on competition.

    “We believe that this is a serious issue as it brings into question Yelp’s filter,” Strategy Response tells WebProNews, noting that in many of our previous articles about Yelp, readers mentioned their frustration and anger with Yelp’s ‘recommended reviews’ section. “Also, Uber is gaining an unfair competitive advantage from an artificially higher Yelp review based on these biased reviews. A Harvard study found that restaurants are able to get a 5 to 9 percent increase in business based on an increase of one-star on Yelp. With some markets only have a single 5 star review for Uber based on a reviewer promoting their own code, this gives them an unfair advantage that Yelp has been unable to address.”

    In its report, Strategy Response says:

    What we do want to highlight is that Yelp’s filter system is not perfect. These reviews got through the filter, and once they were posted, it appears as if there were no further quality control investigation by Yelp. There has been many articles written about Yelp’s filter. If you have a small business, you have probably express anger, frustration, and fear when the filter prevents customers from leaving a glowing review. However, in addition to worrying over your own profile, it is also very important to check your competitors profile to see what has gotten through. In these examples, the competing taxi companies and ride-sharing apps in these markets should have flagged these reviews to get them removed. Regardless of the true intentions of the reviewers, the fact that it included a promo code should have prevented them from being displayed.

    Last month, Yelp launched a new app for business owners aimed at enabling them to better manage their Yelp reputations and respond to consumers more quickly. Based on our reader response, businesses aren’t very impressed.

    Do you think Yelp’s filter is adequate, or is it detrimental to businesses? Share your thoughts in the comments.

  • Uber Sued in Hometown, Accused of Misleading Users over Background Checks

    Uber Sued in Hometown, Accused of Misleading Users over Background Checks

    Uber is under fire from more cities – now including the one in which it is headquartered.

    San Francisco District Attorney George Gascon says that Uber has made “false or misleading statements to consumers and for engaging in a variety of business practices which violate California law.” He specifically addresses Uber’s driver background checks.

    Though the very first thing you find on Uber’s ‘Safety’ page is a blurb about “Background check you can trust”, the company has come under fire recently for the bad actions of some drivers. The latest story involved an accused rape in New Delhi, which led to many Indian officials calling for a countrywide ban. Here in the states we’ve also heard plenty of Uber driver horror stories – including a brutal hammer attack, stories of sexual assault, and one instance of a driver taking passengers on a high-speed police chase.

    “Uber has refused to comply with straightforward California laws that protect consumers from fraud and harm,” said Gascon. “These companies can be innovative in the way they deliver services without ignoring the laws that protect the public.”

    Los Angeles County D.A. Jackie Lacey has joined Gascon is his suit.

    From SiliconValley News:

    The two officials claim that Uber makes misleading statements about the background checks it performs on drivers and falsely charged a $1 “Safe Rides Fee,” among other accusations. The officials had threatened such action in September, warning the car-sharing companies — which connect passengers with drivers through a mobile app – were operating illegally.

    According to a report from the New York Times, Uber has consistently lobbied legislatures across the country against imposing background check requirements that are as strict as those required of traditional taxi services. Uber’s not alone in this, as other on-demand ride companies like Lyft and Sidecar have also done the same thing.

    Uber, a company now valued at over $40 billion, is also facing a lawsuit from the city of Portland, Oregon. The city has accused Uber of operating illegally.

    “There’s nothing sharing about this so-called ‘sharing economy’ company: They want to profit in Portland without playing by the same rules as existing cab companies,” said Portland City Commissioner Steve Novick.

    Image via Uber

  • Uber Facing Lawsuit from the City of Portland, Oregon

    On-demand ridesharing companies like Uber and Lyft often operate in legal grey areas, residing somewhere between illegal and kind-of legal – depending on the specific laws of the cities in which they launch. Most of the conflicts that arise between local governments and Uber have to do with current on-the-books laws regulating taxi services and the acquisition of permits. This sort of struggle is definitely not unprecedented.

    Last week, Uber launched in Portland, Oregon. This was notable because technically, Uber is illegal in Portland, Oregon. In the city, it is illegal for drivers to pick up passengers for a fee inside the city limits without proper permits – which Uber does not possess.

    Uber operates in nearby localities, which makes it an even trickier situation. Portland allows Uber drivers to operate inside the city limits, as long as they are just dropping off passengers they picked up in another city. Anyway, the city of Portland condemned Uber’s decision to begin operations and threatened fines.

    “There’s nothing sharing about this so-called ‘sharing economy’ company: They want to profit in Portland without playing by the same rules as existing cab companies,” said City Commissioner Steve Novick. “People who pick up passengers for Uber in Portland should know that they are operating illegally and could be subject to penalties. Public safety, fairness among competitors and customer service are our top priorities. Unlike permitted drivers, Uber drivers do not carry commercial insurance, putting Portland customers at great risk.”

    Fast forward a few days and the city of Portland is taking even stronger measures to stop Uber – by filing a lawsuit.

    “The lawsuit seeks declaratory relief that Uber is subject to and in violation of the City of Portland’s Private for Hire Transportation Regulations and Administrative Rules. The City’s lawsuit is asking for a declaration by the court that Uber is subject to the City’s regulations. The lawsuit also asks the Court to order Uber to stop operating in Portland until it is in compliance with the City’s safety, health and consumer protection rules,” according to a release from the city government.

    Mayor Charlie Hales says this is about both safety and fairness.

    “Our main concern is public health and safety, because the state invested in the cities the responsibility to do that,” Mayor Charlie Hales said. “Beyond that, though, is the issue of fairness. Taxi cab companies follow rules on public health and safety. So do hotels and restaurants and construction companies and scores of other service providers. Because everyone agrees: good regulations make for a safer community. Uber disagrees, so we’re seeking a court injunction.”

    Despite common legal objections and some incredibly bad PR, Uber just found itself at the end of a $1.2 billion round of funding. Uber is now valued at over $40 billion.

    Image via Uber, Facebook

  • Uber Could Soon Be Valued at $40 Billion

    Uber could be valued at a staggering $35 to $40 billion after a new round of funding, according to a report.

    “T. Rowe Price Group Inc. is in discussions to be a new investor, said the people, who asked not to be identified because the details are private. Existing investor Fidelity Investments is also set to participate in the funding, they said. Uber is raising at least $1 billion, the people said,” according to Bloomberg.

    For some perspective, that would put Uber on par with companies like Delta Airlines and Kraft. In the transportation realm, Uber would outpace rental service Hertz by a factor of four.

    The last time Uber saw a pretty shocking valuation was this past summer, when a new round of funding valued the company at around $17 billion.

    This massive valuation would come at a time when Uber is fighting off some pretty bad press. Most recently, an Uber exec suggested that the company could, in theory dig up dirt on any journalists who painted the company with a negative light. Those comments were walked back faster than you can say ‘take a Lyft’.

    A few days later, it was revealed that another Uber exec had violated a journalist’s privacy by looking up ride records without cause.

    One foot-in-mouth investor later and we saw rival Lyft have its best week ever.

    All of this, of course, comes on the heels of various troubling reports of violent incidents between drivers and passengers.

    Image via Uber, Facebook

  • Lyft Has Best Week Ever After Uber’s Run of Bad PR

    Uber hasn’t had a good few months, PR wise – and the past couple of weeks have been brutal. When one of your executives says that the company should start digging up dirt on journalists who criticize the company, well, it’s bound to generate some bad press.

    And then when one of your execs actually does breach privacy and access a journo’s history, well, things are bound to get worse.

    Big-mouthed investors don’t really help, either.

    You would imagine that if anyone would benefit from Uber’s bad PR, it would be rival on-demand car service Lyft. And you would be right, according to the company.

    A rep recently confirmed to Mashable that the past week was the company’s best yet.

    “A rep for the company says last week was the biggest week yet for the company. The rep declined to go into specifics, but said ‘percentage-wise’ it was the ride-share company’s biggest boost yet,” reports Mashable.

    Lyft has also just introduced an initiative called “Driver Destination’, which is pretty much a shoot-off of Lyft Line (the carpooling service), but with a focus on the driver’s side of the equation.

    Here’s how it works, according to Lyft:

    Nearly 80% of commuters currently drive to work alone. With the latest evolution of Lyft Line, now these drivers can easily turn their daily solo drives into shared rides. Here’s how it works: when drivers enter a destination into the Lyft app, they will only receive ride requests from Lyft Line passengers going the same way, with minimal detours. Drivers can earn even more every week by starting to pick up rides while heading to and from work – some of the busiest times of day. By enabling Lyft Line with Driver Destination to and from work every day, you could earn up to $400 per month – enough to cover a car payment – and connect with interesting people who live and work nearby.

    As long as Uber continues to receive bad press, Lyft only stands to benefit. That is, of course, until Lyft drivers start attacking people with hammers.

  • Uber Going After Journos Has ‘No Basis in Reality’ Says Company

    Uber Going After Journos Has ‘No Basis in Reality’ Says Company

    The bad press for Uber has just gone a bit meta.

    According to a report from BuzzFeed, an Uber VP recently proposed an idea to combat the negative press the company’s been receiving as of late. According to Emil Michael, Uber could, in theory, dig up dirt on critical journalists and use that to fight back. Now, instead of stories of hammer attacks carrying Uber’s bad press, the bad press is that the company might want to attack the press over bad press.

    BuzzFeed noted Michael’s remarks at a company dinner – to which BuzzFeed was invited. Apparently, Michael thought the whole thing was off the record – a point that was not communicated to BuzzFeed. From their report:

    A BuzzFeed editor was invited to the dinner by the journalist Michael Wolff, who later said that he had failed to communicate that the gathering would be off the record; neither Kalanick, his communications director, nor any other Uber official suggested to BuzzFeed News that the event was off the record.

    Michael, who Kalanick described as “one of the top deal guys in the Valley” when he joined the company, is a charismatic and well-regarded figure who came to Uber from Klout. He also sits on a board that advises the Department of Defense.

    Over dinner, he outlined the notion of spending “a million dollars” to hire four top opposition researchers and four journalists. That team could, he said, help Uber fight back against the press — they’d look into “your personal lives, your families,” and give the media a taste of its own medicine.

    Though Michael implied that this sort of targeted attack could be used against any critical press, he focused his attention on one tech writer in particular, PandoDaily editor Sarah Lacy. Apparently, it was this October 22 article that had incensed Michael to the point of pondering retribution. In Lacy’s article, titled The horrific trickle down of Asshole culture: Why I’ve just deleted Uber from my phone, she accuses the company of deep-seated sexism and misogyny.

    More from BuzzFeed:

    Uber’s dirt-diggers, Michael said, could expose Lacy. They could, in particular, prove a particular and very specific claim about her personal life.

    Michael at no point suggested that Uber has actually hired opposition researchers, or that it plans to. He cast it as something that would make sense, that the company would be justified in doing.

    Uber was quick to respond, saying that it has not and will not investigate journalists.

    “We have not, do not and will not investigate journalists. Those remarks have no basis in the reality of our approach,” said Uber spokesperson Nairi Hourdaijan in a statement.

    As for Michael himself, he’s also issued a statement saying his remarks do not accurately reflect his true views.

    “The remarks attributed to me at a private dinner – borne out of frustration during an informal debate over what I feel is sensationalistic media coverage of the company I am proud to work for – do not reflect my actual views and have no relation to the company’s views or approach. They were wrong no matter the circumstance and I regret them,” he said.

    And according to Lacy, he sent her a more personal apology via email.

    There are a lot of losers here and not a lot of winners, but you’d have to imagine that Lyft is among the latter.

    Image via Uber, Facebook