The Uber Files The Uber Files is an international investigation into the ride-hailing company's aggressive entrance into cities around the world — while frequently challenging the reach of existing laws and regulations. Documents illuminate how Uber used stealth technology to thwart regulators and law enforcement and how the company courted prominent political leaders as it sought footholds outside the United States. The project is based on more than 124,000 emails, text messages, memos and other records. They were obtained by the Guardian and shared with the International Consortium of Investigative Journalists, which helped lead the project, and dozens of other news organizations, including The Washington Post. Journalists from 29 countries joined the effort to analyze the records over four months. (Lucy Naland/Washington Post illustration; Justin Sullivan/Getty; Uber screenshots; Unsplash; iStock) | Five years into Uber's war to supplant the taxi industry, executives at the ride-hailing app were in danger of losing a crown jewel in their global conquest: Paris. The San Francisco start-up was flush at the start of 2016, valued by investors at more than $50 billion, and was racing to expand into Africa, India and Asia. But Uber's first international outpost — the French capital — had become the center of a bloody battle over the company's ambition, a trove of documents from inside the corporation shows. In the previous year, more than 80 Uber drivers had been physically attacked across Europe, and dozens of their cars destroyed, in clashes with taxi drivers who were fearful of losing their livelihoods as Uber's low fares upended their industry. When protests against the company erupted in Paris, managers began working from an unmarked office and for safety reasons were ordered not to wear Uber-branded clothing in public, the documents show. In a series of text messages on Jan. 29, 2016, Uber's then-chief executive, Travis Kalanick, pushed his top lieutenants to mount a counterprotest. Kalanick wanted a peaceful sit-in or march in the city's center. "Civil disobedience" "15,000 drivers" "50,000 riders," he wrote in a burst of unpolished, often abbreviated messages. One executive in response raised concern "about taxi violence against" Uber drivers, and another said the company could "look at effective civil disobedience and at the same time keep folks safe." Kalanick shot back, saying that if the crowd was big enough, Uber drivers would be safe. And if clashes did occur, he appeared to suggest, that could benefit Uber, too: "I think it's worth it," the chief executive wrote. "Violence guarantee success." The company launched operations on four continents in rapid succession, often without seeking licenses to operate as a taxi and livery service, casting itself as merely a technology platform that connected willing passengers and drivers. To try to rewrite laws to recognize its position, Uber exported sophisticated American lobbying methods, the documents show, and it leveraged violence against its drivers in its efforts to win sympathy from regulators and the public. In some instances, when drivers were attacked, Uber executives pivoted quickly to capitalize, the documents show. If a driver had been stabbed or beaten, or bricks had been thrown at his car, company officials behind the scenes provided details to the media if they thought the violence would result in negative attention for the taxi industry, the communications show. Uber would simultaneously activate its lobbyists, using attacks on drivers to secure meetings with politicians and push for regulatory changes, the documents show. In the case of the demonstration in Paris, Kalanick and Uber managers helped arrange for a public show of support for the company at a time when taxi drivers were already clashing with police over Uber's growing presence in the country. The night after the counterprotest in the city's center, police said they intervened to prevent serious injuries as some 50 taxi drivers clashed with Uber drivers on the outskirts of Paris. Two former Uber executives who spoke on the condition of anonymity said that company officials saw potential utility in the violent clashes and sought to capitalize on such incidents for public relations and political benefit. One said that the company would have been foolish not to do so. "Why can't we be as fierce competitors as they are, so long as we are doing it in a reasonably legal way?" the person asked. In response to questions from The Post, Jill Hazelbaker, Uber's senior vice president for marketing and public affairs, acknowledged past mistakes in the company's treatment of drivers, especially under Kalanick, who was forced out as chief executive by investors in 2017. But she said no one, including Kalanick, wanted violence against Uber drivers. Taxi drivers clashing with riot police protesting against transport services such as Uber and Cabify as tourism exhibition FITUR starts. (Marcos del Mazo/LightRocket via Getty Images) | The documents shed new light on how Uber's arrival in Paris and around the world drove taxi drivers to desperation. Uber burned through investor money, suddenly and radically altering the ride-hailing market with artificially low fares when it entered a new foreign city. In Madrid, the documents show, the company at one point was paying incentives of $17.50 an hour to each driver — accounting for almost two-thirds of their pay. In Hamburg, Uber drivers would have made $2.20 per hour under market conditions, minus a small commission, but the company paid each driver an additional $15 per hour — giving away rides almost for free. Uber was spending heavily to influence the levers of power in countries it entered. Globally, the company's budget for policy and communications work was $90 million in 2016, according to one draft budget document. Uber confirmed that the figure was accurate and that about 45 percent went to public affairs work overseas. To press its case with foreign governments, the company was also spending heavily to hire big names such as David Plouffe, a senior White House adviser under President Barack Obama. As it operated in some countries despite court orders to desist, Uber maintained a 24-hour, multicountry emergency-response system that was used to keep company information out of the hands of investigating authorities, the documents show. The "kill switch," as the company's chief executive and others called it, was used at least a dozen times to sever connections to Uber's internal computer networks as investigators moved in, sometimes with employees using stall tactics to keep detectives away from screens until they went dark, records show. Hazelbaker said Uber does not employ such tactics today. She said "mistakes" made under Kalanick led five years ago to "one of the most infamous reckonings in the history of corporate America. That reckoning led to an enormous amount of public scrutiny, a number of high-profile lawsuits, multiple government investigations, and the termination of several senior executives. It's also exactly why Uber hired a new CEO, Dara Khosrowshahi, who was tasked with transforming every aspect of how Uber operates." "We have not and will not make excuses for past behavior that is clearly not in line with our present values. Instead, we ask the public to judge us by what we've done over the last five years and what we will do in the years to come," Hazelbaker said. Today, Uber has abandoned its ambitions to dominate markets such as Germany and India. It is winding down its operations in Russia and has pulled out of China altogether. In some countries, Uber has begun to work with the taxi industry it couldn't replace, allowing passengers to book cab rides on its app. Nonetheless, Uber is growing. The company operates in 71 countries and books some 19 million trips over its app each day. In the wake of that success are altered lives and livelihoods. Taxi drivers from Cape Town to Connecticut have been plunged into financial hardship, according to records and interviews, strapped by falling fares and in some cases encumbered by debt from mortgaged taxi licenses that have plummeted in value. As the Uber subsidies waned, many of its drivers also have struggled to make ends meet. From New York to New Delhi, a handful of taxi and Uber drivers have died by suicide, citing deep debt and disgust with the company. Moments of candor tucked in the gigabytes of leaked internal records show that some Uber executives knew early on that the phone app was on a collision course with hard realities. "Get some sleep when you can," the company's head of communications, Nairi Hourdajian, wrote to one of the company's top European lobbyists in December 2014. "Remember that everything is not in your control, and that sometimes we have problems because, well, we're just f------ illegal." Hourdajian declined to comment. — Aaron C. Davis, Rick Noack and Douglas MacMillan 'Hit the kill switch': Regulators entered Uber's offices only to see computers go dark before their eyes as the company used covert tech to thwart government raids. Read the full story. As Uber steamrolled into France, Emmanuel Macron was a 'true ally': The French president has never hid that he was an early Uber supporter. But documents suggest his backing for the controversial company went far beyond what has been known publicly. Read the full story. Takeaways from the Uber Files investigation: Findings from the Uber Files, an investigation based on more than 124,000 records exposing the company's aggressive entrance into cities around the world. Read the full story. |
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