Uber (company)

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Uber, Inc. Uber logotype.svg
Uber's logo
Type Privately held company
Industry Transport
Founded March 2009
Founders Travis Kalanick, Garrett Camp
Headquarters San Francisco, California, United States
Area served Worldwide
Key people Travis Kalanick (CEO)
Services Vehicles for hire, ridesharing
Website uber.com
Uber is a ridesharing service based in San Francisco. The company uses a smartph
one application to connect passengers with drivers of vehicles for hire.[1] Cust
omers use the app to request rides and track their reserved vehicle's location.[
2] As of September 16, 2014, the service was available in 45 countries and more
than 100 cities worldwide, and was valued at more than US$15 billion.[3]
Uber has met with protests from taxi drivers and taxi companies who believe that
ride-sharing companies are illegal taxicab operations that engage in unfair bus
iness practices and compromise passenger safety. As of September 2014, protests
had been staged in Germany, France, England, and other nations.[4][5]
Upon its inception, Uber only offered full-size luxury cars for hire, and the "U
berBlack" title was adopted for the company's main service (named after the "bla
ck cars" private transportation services in New York City).[2] In 2012 the compa
ny launched its "UberX" program, which made available to consumers smaller vehic
les such as the Toyota Prius. Due to the lower fees that accompanied the program
, the service became extremely competitive with traditional taxi services, expan
ding Uber's appeal to a broader cross-section of the market.[6]
Contents
1 History
1.1 Establishment in the U.S.
1.2 International expansion
2 Pricing and payments
3 Promotions
4 Reception
5 Regulatory opposition
5.1 Australia
5.2 Belgium
5.3 Canada
5.4 Germany
5.5 Poland
5.6 South Korea
5.7 United Kingdom
5.8 United States
5.9 India
6 Controversy
6.1 Lawsuits
6.2 National Federation of the Blind
6.3 Protests
6.4 Sabotage against competitors
6.4.1 Operation SLOG
7 References
8 External links
History
Establishment in the U.S.
Uber was founded as "UberCab" by Garrett Camp and Travis Kalanick in 2009. The s
ervice was officially launched in San Francisco in June 2010, with Ryan Graves a
ppointed as CEO. Graves later stepped down from his role as CEO to become VP of
Operations; he was replaced by Kalanick.[7] Uber's mobile appfor both iPhones and
Android phoneswas launched in San Francisco in 2010.[8]
The company received venture funding in late 2010 from a group of super angel in
vestors in Silicon Valley that included Chris Sacca.[9] In early 2011, Uber rais
ed more than US$11.5 million in Series A funding led by Benchmark Capital.[10] I
n late 2011, Uber raised an additional $32 million in funding from several inves
tors, including Goldman Sachs, Menlo Ventures, and Bezos Expeditions,[11] bringi
ng their total funding amount to $49.5 million.
International expansion
Paris, France, was the first city outside of the U.S. to be targeted by Uber and
the service began operating in December 2011 prior to the international "LeWeb"
Internet conference. LeWeb founder Loic LeMeur said to the TechCrunch publicati
on: This [Uber] is going to end the monopoly of the taxis in Paris.[12]
The company's entrance into the Canadian market occurred in March 2012 when an o
fficial launch was held in Toronto. At the time of the launch, the company prese
nted data that showed a ratio of 1.9 taxis per 1000 people and concluded that "o
ne must drive to effectively get around the city."[13] The Vancouver testing pha
se commenced in May 2012, and served HootSuite founder and CEO Ryan Holmes soon
after inception.[14]
In April 2012, Uber launched the Uber Garage initiative that was described by th
e TechCrunch online publication as "a workshop where the company will experiment
with new ideas for urban transportation." The first project occurred in Chicago
, Illinois, U.S., and provided Uber users with the option of both taxis and thei
r own vehicles on the mobile app. Kalanick explained to the media that the Chica
go project was an experiment with different car options to test the viability of
working with pre-existent taxis in U.S. cities. Chicago was chosen due to the h
igh ratio of cabs in the city and the low price.[15]
In July 2012, the company entered the London, United Kingdom, market with an ini
tial driving team of about 90 drivers of Mercedes, BMW, and Jaguar autos.[16] Du
ring the same month, in honor of National Ice Cream Month, Uber launched an "Ube
r Ice Cream" program in the U.S., so that users in seven cities could summon an
ice cream truck for on-demand delivery, while purchases were billed to users' ac
counts.[17]
Following a six-week testing period, Uber was officially launched in Sydney, Aus
tralia, in November 2012. Sydney represented Uber's first comprehensive launch i
n the Asia Pacific region and the band Art vs. Science participated in an early
promotional exercise.[18][19]
The soft launch of Uber in Singapore began in January 2013 after Kalanick expres
sed an intention to expand into Asia in an early 2012 interview.[20] The officia
l launch was attended by Graves and an article published by the Next Web website
stated that Singapore was specifically chosen due to its reputation as an Asian
technology hub.[21]
In July 2013, Uber began offering "UberCHOPPER" rides, from New York City to the
Hamptons, for US$3,000 in either a cab or helicopter.[22] On September 4, 2013,
Uber announced its first sports deal. By partnering with the NFL Players Associ
ation to promote safe rides for NFL players, Uber planned to appeal to a more ma
instream audience.[23]
Uber's main ridesharing service was launched in August 2013 in the South Korean
capital city of Seoul.[24] In accordance with standard practice, Uber Seoul star
ted as a test phase, and football star Koo Ja Cheol was the first Korean to use
the service in the city.[25]
Although Uber was already banned in the Belgian capital of Brussels, the company
advertised for a Brussels-based "General Manager" on the LinkedIn website in Ju
ne 2014. The advertisement explained that the role was "by far the most demandin
g position Uber has to offer."[26] On June 6, 2014, Uber announced US$1.2 billio
n in funding during its latest round. The round valued Uber at around $17 billio
n pre-money.[27]
Following a soft launch of the Uber app in the Sanlitun shopping district in Mar
ch 2014, an official launch occurred in Beijing, China, in mid-July 2014, meanin
g that the company's technology exists in all of Chinas four "tier-one" cities. A
t the time of the Beijing launch, Allen Penn appeared in the media as the head o
f Uber's Asia division.[28]
On August 4, 2014, the company announced the scheduled removal of a driver from
the apppending a medical reviewafter the driver suffered an epileptic seizure whil
e driving that resulted in an accident with a pedestrian in San Francisco. The 5
6-year-old driver was hospitalized after hitting three parked cars and then a ma
n on the sidewalk; an Uber spokesperson said to the media as part of the announc
ement that the driver "has an outstanding record of service and safety with no p
rior incidents."[29]
Drivers in the Polish capital city of Warsaw began using the Uber app on August
18, 2014. A taxi license or a taximeter are not requirements for drivers, and al
l payments are made through the mobile app. Swathy Prithivi, coordinator of Uber
's entry into new markets, said to Polish media: our premise is to be the cheapes
t. We will even be cheaper than the most popular Warsaw carriers."[30]
Although the Metropolitan Government of Seoul officially stated in mid-2014 that
it would seek to ban Uber from operating in its jurisdiction, while also develo
ping its own Uber-like app for registered taxis to be launched in December 2014,
[31] Uber proceeded to introduce its UberX service in the city at the end of Aug
ust 2014. According to the Wall Street Journal, UberX uses a "for-pay rideshare
scheme" and "trips cost less than the same journey in an ordinary taxi." At the
time of the launch, an Uber representative based in Seoul said that a charge wil
l not apply to rides in Seoul until further notice.[24]
At the end of August 2014, the company had reportedly raised US$1.5 billion in v
enture capital.[32] Following a series of 2014 media articles, in which Uber's a
ggressive business practices were exposed, the Salon publication published an ar
ticle on August 31, 2014 by staff writer Andrew Leonard, titled "Why Uber must b
e stopped." Leonard described Uber as "the closest thing weve got today to the li
ving, breathing essence of unrestrained capitalism," and warned of the harms tha
t will occur if the company achieves a "dominant market position in every major
city on the globe."[33]
Pricing and payments
Uber's pricing is similar to metered taxis, although all hiring and payment is h
andled exclusively through Uber and not with the driver personally. If the Uber
car is travelling at a speed greater than 11 mph (18 km/h), the price is calcula
ted on a distance basis. Otherwise, the price is calculated on a time basis.[34]
At the end of a ride, the complete fare (which does not include a gratuityUber's
exact wording is "No Need to Tip") is automatically billed to the customer's cr
edit card.[2] Uber has said its high prices are the premium that the customers p
ay for a cab service that is not only reliable, but also punctual and comfortabl
e.[35][36][37]
During high demand times such as Halloween, New Year's Eve, or severe inclement
weather (such as heavy snowstorms), Uber increases its prices to "surge price" l
evels, attracting more drivers.[38][39] Uber has also used surge pricing during
extremely inclement weather, such as a July 8, 2013, rainstorm that flooded many
streets in the greater Toronto area, and during Hurricane Sandy.[40] Customers
receive notice when making a reservation that prices have increased.[38] During
New Year's Eve 2011, prices were as high as seven times normal rates, causing ou
trage in response.[41] Uber co-founder Travis Kalanick responded: "...because th
is is so new, it's going to take some time for folks to accept it. There's 70 ye
ars of conditioning around the fixed price of taxis."[41][42]
Promotions
DeLorean time machine provided by Uber
Uber's promotions include hiring ice cream trucks to deliver ice cream,[43] offe
ring rides in DeLorean DMC-12s to Back to the Future fans,[44] offering helicopt
er service from New York City to the Hamptons during the July 4 weekend,[45] a N
ational Cat Day promotion in which Uber drivers delivered kittens,[46] and a Chr
istmas tree delivery service.[47]
Reception
In 2013, USA Today named Uber its tech company of the year.[48]
In 2011, Marc Andreessen said he would love to invest in Uber. He told CNET, "Ub
er is software eats taxis. [...] It's a killer experience. You watch the car on
the map on your phone as it makes its way to you."[49] Also in 2011, The New Yor
k Times called Uber "clever but costly", noting the cars are "particularly nice
by livery standards" and pickup times were slow compared with traditional New Yo
rk City taxis and black cars.[35]
Uber faces competition from lower-cost real-time ridesharing startups such as Ly
ft, Sidecar and Haxi. To compete at lower price levels, Uber has introduced Uber
Taxi (partnerships with local taxi commissions) and UberX (nonluxury cars such a
s Toyota Prius hybrids).[50] This move has led to dissatisfaction among existing
Uber limo drivers who have seen their earnings decrease.[51]
In October 2014, Uber received an "F" rating from the Better Business Bureau (BB
B), with the BBB citing complaints over unexpectedly high charges.[52][53]
Regulatory opposition
Australia
On April 30, 2014, Transport for New South Wales, the government authority regar
ding transportation in New South Wales, Australia, responded to the introduction
of ridesharing function of Uber and clarified that "if a NSW driver is taking p
aying members of the public as passengers, the driver and the vehicle must opera
te in accordance with the Passenger Transport Act" and "Under the act, such serv
ices must be provided in a licensed taxi or hire car, by an appropriately accred
ited driver, authorised by Roads and Maritime Services (RMS)."[54]
On May 6, 2014, the Taxi Service Commission in Victoria, Australia, issued a num
ber of infringement notices to Uber drivers with a fine of Au$1,723, after a pub
lic warning discouraging people to use ridesharing applications like UberX.[55]
NSW Transport Minister Gladys Berejiklian said RMS is investigating Uber's case.
Belgium
Uber was banned in Brussels, whereby the company will be fined 10,000 (US$13,500)
if it offers fares to drivers who are not in possession of a taxi license. Brux
elles-Mobilite, the city's federal region administration responsible for infrast
ructure and traffic, impounded 13 cars aligned with Uber after March 2014 and a
spokesperson for the body described the service as "illegal" in June 2014. The s
pokesperson further explained to the media that Bruxelles-Mobilite is generally
addressing the issue of illegal taxi drivers in a sector that is difficult to re
gulate.[26]
Canada
A September 2012 article in the Vancouver business press reported a dispute with
local regulators.[56] On November 22, 2012, Uber announced it was exiting the "
Secret Uber" stage in Vancouver and raising its rates to C$75 per hour to comply
with provincial regulations.[57] As of December, Uber had not applied for a lic
ense from the city.[58]
On December 5, 2012, officials at the City of Toronto charged Uber with "25 muni
cipal licencing offences, including operation of an unlicensed taxi brokerage an
d unlicensed limo service".[59] City officials said they had advised the company
to comply with local regulations. Rival taxi dispatch apps had obtained license
s.[60]
Germany
In early 2014, Berlin authorities ruled against Uberwhich operates in the German
cities of Berlin, Munich, Frankfurt, Hamburg and Dsseldorfon two occasions followi
ng a case filed by the Berlin Taxi Association. The first ruling, delivered by a
court of law in April 2014, deemed Uber's limousine service to be in breach of
local legislation, while an August 13, 2014 decision banned the service from ope
rating in Berlin due to safety concernsthe latter decision, which includes a 25,00
0 (Euro) (US$33,400) fine for non-compliance, cited issues pertaining to unregul
ated vehicles and unqualified drivers who are not properly insured. A Berlin Tax
i Association representative explained on August 14 that the legal proceedings a
re ongoing, as Uber can lodge an appeal against the second decision.[61]
On August 28, 2014, a court in Frankfurt issued an immediate cease and desist or
der against Uber, following an appeal from the cooperative Taxi Deutschland.[62]
The preliminary injunction applied to all of Germany[63] and included a fine of
250,000 (US$328,108) per ride for non-compliance.[64][65] If the injunction was
breached, Uber's German-based employees could be jailed for up to six months, in
addition to an imposition of fines upon the company.[5] Uber's premium Uber Bla
ck service was not affected by the ruling.[3]
On September 16, 2014, the district court of Frankfurt revoked the preliminary i
njunction, thereby re-allowing Uber to operate in Germany.[62] The presiding jud
ge explained that the Taxi Deutschland case "would have had prospects for succes
s," but the case was merely lodged too late, as any case needs to be filed withi
n two months of a service's launchUber started in Germany in April 2014, but the
case was filed in August 2014.[3] According to Taxi Deutschland's legal represen
tative after the announcement of the decision, the body had "already decided to
appeal the decision, and we [Taxi Deutschland] will also seek that the temporary
injunction be reinstated," meaning that the matter must be heard in a higher co
urt.[66]
Poland
Following the commencement of Uber services in Warsaw, Jaroslaw Iglikowski, chie
f of the Union of Warsaw Taxi Drivers, explained to the media: "We will put pres
sure on politicians, and demand that they change the regulations [for firms offe
ring taxi services]."[30]
South Korea
The Seoul city government released an official statement in July 2014 expressing
its intention to seek a ban on Uber's smartphone app. The government stated tha
t South Korean law prohibits fee-paying transport services that use unregistered
private or rented vehicles, and a Seoul driver received a one-million won (US$9
74) fine in April 2014 after using Uber to solicit customers in a rented car. Th
e city government also initiated a police investigation of Uber in June 2014, bu
t the request was suspended due to a lack of evidence; however, the July stateme
nt indicated that the investigation would be recommenced. A response from Uber w
arned the government that it risked being "trapped in the past."[31]
United Kingdom
On June 11, 2014, London-based Hackney carriage (black cab) drivers, members of
the Licensed Taxi Drivers Association, disrupted traffic as a protest against Tr
ansport for London's refusal to stop Uber's calculation of fares based on distan
ce and time taken, as they claimed it infringes upon their right to be the sole
users of taxi meters in London.[67] The following week, London mayor Boris Johns
on stated it would be "difficult" for him to ban Uber "without the risk of a jud
icial review"; however, he expressed compassion for the view of the black-cab dr
ivers. Johnson explained:
I think it's a very difficult [question] ... We've gone to the high court to
get a ruling on this, and the issue is basically: is the driver's mobile in the
cab equivalent to a taxi meter? I can see why m'learned friends might think tha
t it is, because it's receiving data about, or it's calculating, the distance an
d time and the fare. And there are other lawyers who say that it isn't, and that
was the advice of the counsel to TfL. And so we've got a legal problem.[68]
In a blog post black-cab driver Rooney Johan explained: "if they (had) included
us and the limousine companies instead of the private cars we would have acted d
ifferently", which was followed by another black-cab owner George Ryan saying: "
if Uber want to operate outside US they have to modify their business model". Fo
llowing the black-cab protest, driver Richard Cudlip conceded, "as a trade we fa
iled to get our message across". Cudlip further explained his perception of the
salient concerns: safety in minicabs, slow issuing (and reissuing) of black-cab
licences, a failure to prevent minicabs from illegally touting for business, and
a lack of space outside key London tourist destinations.[68]
United States
In May 2011, Uber received a cease-and-desist letter from the San Francisco Muni
cipal Transportation Agency, claiming it was operating an unlicensed taxi servic
e, and another legal demand from the California Public Utilities Commission that
it was operating an unlicensed limousine dispatch. Both claimed criminal violat
ions and demanded that the company cease operations. In response, the company, a
mong other things, changed its name from UberCab to Uber.[69] In the fall of 201
2, the California Public Utilities Commission issued a cease-and-desist letter t
o Uber (along with rideshare companies Lyft and SideCar) and fined each $20,000.
However, an interim agreement was reached in 2013 reversing those actions.[70]
In September 2013, the CPUC unanimously voted to make the agreement permanent, c
reating a new category of service called transportation network companies to cov
er Lyft, UberX, SideCar, and Summon, thereby making California the first jurisdi
ction to recognize such services.[71]
In January 2012, an Uber driver's cab was impounded as part of a sting by the Wa
shington, D.C., taxicab commission. The commissioner said the company was operat
ing an unlicensed taxicab service in the city.[72] Following a social media camp
aign by Uber's users, the D.C. City Council voted in July to formally legalize t
his type of service, with no minimum fare which led to taxicab drivers protestin
g.[73]
On August 1, 2012, the Massachusetts Division of Standards issued a cease-and-de
sist letter to Uber, on the grounds that the GPS-based smartphone app was not a
certified measurement device, but on August 15, the agency reversed its ruling a
fter prodding by Governor Deval Patrick, saying that technique was satisfactory
because it was under study by the National Institute of Standards and Technology
.[74]
On October 5, 2012, Uber was sued by the taxi and livery companies in Chicago. A
ccording to the release, Uber is accused of violating Chicago and Illinois laws
designed to protect public safety, consumer protection, and fair practices.[75]
The New York City Taxi and Limousine Commission has discouraged drivers from par
ticipating in Uber, resulting in suspension of Uber-operated taxi service in the
city in October 2012. Uber's premium sedan service was not affected.[76] When H
urricane Sandy hit New York later that month, Uber drew criticism for doubling p
rices as part of its "surge pricing" system.[77] (Uber ultimately waived its fee
s and passed on all of the fares to its drivers, and defended its pricing by not
ing that it tripled the number of vehicles available.)
As of August 2013, Uber was being sued by American drivers who claimed that the
company was stealing their tip money.[78]
On March 17, 2014, the Seattle City Council voted to limit the number of drivers
that ridesharing services like Uber, Lyft, SideCar, and others could operate to
150 per service.[79] City Council Member Kshama Sawant argued in favor of the c
aps as a means to protect traditional taxi drivers.[80] However, on April 17, 20
14, the council's ordinance was suspended by a coalition that obtained 36,000 si
gnatures to put the question to voters in a referendum. As a result, Mayor Ed Mu
rray announced a 45-day negotiation process to find an alternative approach.[81]
As of July 14, 2014, Uber has donated over $500,000 to "Seattle Citizens to Rep
eal Ordinance 124441," a political group seeking to overturn the ordinance limit
ing the number of rideshare vehicles in Seattle.[82]
On June 5, 2014, the Virginia Department of Motor Vehicles issued a cease-and-de
sist letter to both Uber and its competitor Lyft, demanding they halt operations
within Virginia.[83]
On September 17, 2014, California's Governor approved the "Assembly Bill No. 229
3" bill that will become effective on July 1, 2015. The bill will amend "the Pas
senger Charter-party Carriers Act to enact specified requirements for liability i
nsurance coverage for transportation network companies, as defined, and their pa
rticipating drivers." The driver under the new law is defined as "any person who
uses a vehicle in connection with a transportation network companys online-enabl
ed application or platform to connect with passengers." The stated minimum insur
ance requirement ranges from US$50,000 to $100,000 for death and injuries per in
dividual or incident, and stipulates US$30,000 for property damage. As a breach
of the bill would be classified as a criminal act, a corresponding "state-mandat
ed local program" will be implemented.[84]
India
On August 22, 2014, the Reserve Bank of India issued "Security Issues and Risk m
itigation measures related to Card Not Present (CNP) transactions"[85] probably
with an intention of targeting Uber (or companies like Uber), which mandates a "
two factor authentication" in where cards are not present. In the case of Uber,
the RBI also believes that it results in foreign exchange leaving the country as
payments are made in another currency.
Controversy
Lawsuits
In December 2013, a person who worked as an Uber driver ran over and killed a si
x-year-old girl, severely injuring her mother and brother. The driver was not ca
rrying a passenger, but the girl's family filed a wrongful death suit against Ub
er, claiming the driver was using Uber's mobile application at the time.[86][87]
[88]
National Federation of the Blind
A lawsuit was filed in the U.S. state of California on September 9, 2014 by the
state chapter of the National Federation of the Blind, in response to the report
ed denial of services to "more than 30" blind customersthe lawsuit claims that th
e conduct is "in violation of the American with Disabilities Act and California
state law." The Washington Post published a direct quote from the complaint, in
which the Federation claims that its constituency "face the degrading experience
of being denied a basic service that is available to all other paying customers
." Two cases were elaborated upon in the Post article: First, a California UberX
driver allegedly stored a service dog in the trunk of his vehicle and refused t
o acknowledge the blind passenger's concern upon the latter's realization of wha
t had occurred; second, a driver allegedly cursed at a blind passenger during a
verbal exchange, in which the latter was explaining the nature of the guide dogac
cording to the complaint, the driver suddenly accelerated, and nearly injured th
e dog, while also striking the passengers blind friend with an open car door.[89]
Uber's response to a number of blind passengers who reported their experiences e
xplained that, because Uber drivers are independent contractors, the company is
unable to oversee their conduct; however, the Federation informed the media of i
ts belief that Uber closely monitors its drivers' work practices through the Ube
r app. The Federation further explained that Uber advised blind passengers to no
tify drivers about their guide animals in advance, and that it proceeded with th
e filing of the lawsuit after Uber refused to enter into a negotiation with them
to resolve the issue.[89]
Protests
On January 13, 2014, cab drivers in Paris attacked an Uber driver's car near Cha
rles de Gaulle Airport, protesting competition from the transportation startup.[
90] On June 11, 2014, in a concerted action, taxis blocked roads in major Europe
an cities in protest against what they perceive as a threat to their livelihoods
by companies such as Uber. The cabbies contended that Uber and similar smartpho
ne app-based services have an unfair advantage because they are not subject to t
he same kinds of fees and regulations placed on taxis.[91][92]
Sabotage against competitors
The company issues an official apology on January 24, 2014 after documents leake
d to the Valleywag and TechCrunch publications revealed that, earlier in the mon
th, Uber employees in New York City deliberately ordered rides from Gett, a newl
y established competitor, only to cancel them later. The purpose of the fake ord
ers was two-fold: wasting drivers' time to obstruct legitimate customers from se
curing a car, and offered drivers incentivesincluding cashto join Uber.[93] Uber's
apology was released in the form of a statement on its website, titled "Stateme
nt on NYC Driver Outreach," and the company explained:
The sales tactics were too aggressive and we apologize for our outreach appr
oach to these drivers. But to be clear there was no time spent by the providers,
as the requests were canceled immediately and Uber did pay cancellation fees fo
r these requests. We have messaged city teams to curtail activities that seek le
ad generation in this manner.[94]
The Lyft ridesharing service then reported to the CNN Money media outlet in Augu
st 2014 that 177 Uber employees had ordered and cancelled about 5,560 rides sinc
e October 2013Lyft said it found links to Uber recruiters by cross-referencing th
e phone numbers involved. The CNN Money report identified one Lyft passenger who
canceled 300 rides from May 26 to June 10, 2014, and was identified as an Uber
recruiter by seven different Lyft drivers. On this occasion, Uber did not issue
an apology, but suggested in a statement on its website that the recruitment att
empts were possibly independent parties trying to make money.[95][96] A Lyft spo
kesperson stated to CNN Money: "It's unfortunate for affected community members
that they have used these tactics, as it wastes a driver's time and impacts the
next passenger waiting for that driver."[95]
In an August 26, 2014 Verge article, an unnamed Uber contractor informed the pub
lication that Lyft's concerns were warranted:
Whats simply untrue is that not only does Uber know about this, theyre activel
y encouraging these actions day-to-day and, in doing so, are flat-out lying both
to their customers, the media, and their investors.[32]
Operation SLOG
The Verge online publication reported on a secret Uber project called "Operation
SLOG"which recruits members with the assistance of TargetCW, a San Diego, U.S.-b
ased employment agencythat appears to be an extension of the company's activities
in relation to Lyft. Using interviews with current and former contractors, as w
ell as leaked internal documents, the Verge's Casey Newton wrote about an email
that was sent to particular Uber contractors on July 9, 2014 following Lyft's ex
pansion into New York City. The email reportedly targeted from eight to ten peop
le, offered a "huge commission opportunity," and was dependent on the "personal
hustle" of the participants.[32]
The special project received the codename "SLOG" and those who responded to the
initial email message were invited to individually meet with Uber marketing mana
gers who had been selected from the company's Los Angeles and Washington, D.C. o
ffices. According to a contractor who spoke to Newton, Uber wanted to create a "
street team" to gather intelligence about Lyfts launch plans and recruit their dr
ivers to Uber. Successful recruits were given two Uber-branded iPhones and a ser
ies of valid credit card numbers so that they could create dummy Lyft accountsthe
second phone was reportedly provided as a backup, in the event that a person wa
s identified by Lyft.[32]
Lyft declined to speak with Newton for the story, while Target CW warned its con
tractors against talking to the media, stating that it represented a violation o
f a non-disclosure agreement they signed. In terms of Uber, Newton wrote: "the c
ompany [Uber] stalled for time until they could write this blog post introducing
Operation SLOG to the world."the post claimed: "We [Uber] never use marketing ta
ctics that prevent a driver from making their livingand that includes never inten
tionally canceling rides."[32]
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