[RahulNagaraj]

AFTER tracking money flows of the rich into offshore tax havens, it’s now about a tech giant that has, combining business aggression and customer convenience, reshaped cab-hailing across the world: Uber.

In its eighth collaboration with the International Consortium of Investigative Journalists (ICIJ), The Indian Express spent four months investigating The Uber Files, a cache of 124,000 internal emails, text messages and documents from inside Uber.

Obtained by The Guardian and shared with ICIJ and a global consortium of newsrooms in 30 countries, including The Washington Post and BBC, these records tell the untold story of how a shaky Silicon Valley start-up became a $44-billion global transportation giant with operations today in 72 countries — and counting.

And how it used stealth technology to bypass regulators; tapped into a sprawling lobbying network; aggressively cut corners as it drove through loopholes in law and regulation.

These records cover 2013-2017, the period when the company, led by its flamboyant and brash co-founder, Travis Kalanick, was steamrolling its cab-hailing service from one world market to another.

Kalanick has responded to ICIJ’s revelations through his spokesperson, Devon Spurgeon, in his signature style: “When Mr Kalanick co-founded Uber in 2009, he and the rest of the team pioneered an industry that has now become a verb. To do this required a change of the status quo, as Uber became a serious competitor in an industry where competition has been historically outlawed.”

Since it launched services in 2013, Uber found in India one of its fastest-growing markets — an estimated 6 lakh drivers plying today in over 100 cities riding on an urban workforce sprawling across cities with spotty public transport and restricted taxi services.

Uber’s strategy was summed up in an email that Uber’s then Asia head, Allen Penn, wrote to the India team in August 2014. “We’ve definitely made a splash in our first year in India…We will likely have both local and national issues in almost every city in India…That’s life running a business at Uber,” he wrote.

Records detail Uber’s run-ins with a host of Indian regulatory authorities, including GST and Income Tax Departments as well as Consumer Forums, the Reserve Bank of India and the Service Tax Department.

Indeed, in September 2014, Uber prepared a presentation for its staff using India as a case study for handling Service Tax issues. “Authorities want Uber to open their books, otherwise we are facilitating fraud,” says a slide in a PowerPoint presentation which is part of the records now revealed.

Shortly after that, in December 2014, crisis hit the company following the rape of a 25-year-old passenger in New Delhi in an Uber car by the driver.

Dozens of internal emails show that even as red flags were being raised on the ban imposed by the Delhi government, top executives squarely blamed the “flawed” licensing systems in India for letting the criminal record of the accused driver slip through.

Uber was in panic and in between some frantic damage control, Nairi Hourdajian, then the head of Uber’s communications unit, wrote in an email to his colleague on December 11, 2014, just six days after the rape: “Remember that everything is not in your control and that sometimes we have problems because, well, we’re just illegal.”

An investigation by The Indian Express shows that critical elements of the new safety features that Uber boasted of after the New Delhi rape incident, are not yet in place. For example, the “panic button” that every Uber cab — like public transport buses and cabs — is meant to be fitted with is yet to be integrated with Delhi Police and State Transport Department systems even six years after the rape.

Much has been said about the “nastytech” Uber deployed during Kalanick’s tenure and The Uber Files dramatically expands upon instances and circumstances of its use: there are details of how the company used tools like “greyball” and “ geofencing” to keep Uber rides away from prying policemen and Government officials.

Significantly, there are 13 instances uncovered in the files about deployment of the ‘Kill Switch’ in several countries – an in-house label for a process that shuts down local systems to firewall them from any probe. In fact, in six cases, the records reveal, the ‘Kill Switch’ was used even as raids by regulators were in progress at Uber offices.

One particular email from a top Uber executive of February 2015 (in the context of anticipated tax raids in Belgium) details the modus operandi Uber used for India: how the local team appeared to be cooperative before Indian authorities even as they were actually “shut down” — courtesy the ‘Kill Switch’ — by Uber’s headquarters.

Uber is trying to leave many of these controversies behind and in response to questions sent to the company’s India head, Prabhjeet Singh, its spokesperson responded, “When Uber launched in India almost a decade ago, no ridesharing regulations existed at that time as the transportation laws did not conceive app-based ride sharing as an option. We have long championed rules and regulations that reflect changing technology and interest of cities and our customers — riders and drivers alike. As a category-defining company, we applaud and support progressive regulatory change that is good for riders, drivers and cities.’’

Across the world, the Uber Files also underline the almost military precision with which Uber has, over the years, made friends in high places.

The company, with the help of an advisory firm, had prepared a list of more than 1,850 “stakeholders” from different countries, with among whom its top brass could seek meetings. The “stakeholders” were a mixed club: public officials, bureaucrats, members of think tanks and transportation experts.

Among Uber’s “close” friends, the records show, was Emmanuel Macron, who, as a then Minister in France, was clearly identified as an Uber “ally.” There are several exchanges between Macron and key Uber executives, including Kalanick.

The company had also courted oligarchs who had proximity to Russian President Vladimir Putin. Some of the oligarchs who figure in the data have since been sanctioned after the invasion of Ukraine.

Uber hired former Obama aide David Plouffe (he visited India in February 2016 and met three Chief Ministers) as head of the company’s global branding in 2014 and worked there till 2017.

Records show that Plouffe participated in internal email discussions on the use of the ‘Kill Switch’ during raids on two occasions.

Source: The Indian Express

[V.Narayan]

The only thing worse than a public monopoly is a private super well funded monopoly whose only aim is valuation maximization. Soon the $ stakes and greed gets stratospheric and integrity a collateral damage. This is the reason ESG (Environment Sustainability Green) and CSR are so vital for corporations today because large well funded transnationals have become a state by themselves with answerability to only their shareholders.

[condor]

One question:

How is affecting us, the users ? What is the effect of this here in India ? How much more are we paying than we should be ?

[AZT]

Anyone who's interested should check out the Guardian dedicated page for this - The Uber Files. Guardian has the leak and they're sharing with media outlets around the world.

These are between 2013 to 2017 period btw when Kalanick was running the show. Before the current CEO Dara Khosrowshahi came in.

[DigitalOne]

Originally Posted by condor

How much more are we paying than we should be ?

With Uber/Ola I am paying a lot less than I used to.

Before Uber/Ola era, if I get down at Blr City or Cantonment station, I had to haggle with the union/pettai auto-wallahs. Auto drivers who are not part of the union will not be allowed to pick up passengers. There used to be (still there?) the prepaid auto stand where you had to pay for farthest point of your locality, an addition of 3 kms in my case. 10 PM - 5 AM was 1.5 times the meter rate.

Long story short, I have paid more to the prepaid Auto system in 2007 than I pay now to Uber/Ola, especially for railway station trips.

Yes, cancellations and unreliable service has become a huge issue in recent times, but fares are still reasonable compared to the local auto-wallahs. If you still don't believe me, come out of an IT office and ask the pettai autos idling outside.

ps : Pettai (Tamil) - Local area.

[Chetan_Rao]

In India, they now suck at their primary business: providing reliable, efficient and cost-effective transportation. They can indulge in all the high-stakes politicking they want, eventually means nothing if they can't consistently do what it says on the tin.

Proof is in the pudding. Their initial VC-funded binge ran all the smaller local players out of business, but a lot of them are back in vogue because people are beginning to realize they value reliability more than bling and 'deals'. People are increasingly turning to known local operators, esp. for trips where one can't afford uncertainty (e.g. scheduled buses/trains/flights).

My last few airport drops/pickups have been with a vendor called QuickRide, bookable directly through our society management app (MyGate), so one less app to keep on my phone. Cabs are assigned promptly, arrive in advance without follow-up, no haggling over payment methods and cheaper than Ola/Uber (QuickRide sedan was cheaper than Ola/Uber hatchback option both to & from airport).

Meru, in pre Ola/Uber days, used to have an 'airport drop guarantee', never failed me in nearly a decade. Uber/Ola never quite built that trust, and are now a worse gamble than betting on a highlights package.

[dragonfire]

I didn't read the whole article, but reading through the excerpts in the first post, I couldn't clearly understand what law or regulation they have broken yet. The article seem to exert a serious tone, but no real mass to back it up.

Worldwide, private businesses have to navigate a series of red tape, draconian laws and regulations to operate and sustain their ventures, while govts with one hand gripped on their throats, and the other hand buried in their pockets fishing out the last tax buck.

I wouldn't worry if they circumvent a law or two using loopholes that make a part of these draconian laws and regulations.

[Sebring]

Guys, try this. Get into any auto (My Bangalore experience only) and ask him to start the meter. Yes, the old fashioned way. Get a UBER quote. It will be at least Rs 50 cheaper. On one instance I saved Rs 100 even. Nowadays I use UBER only in godforsaken areas, and am ready to pay the premium in that instance. What I see in my circle is that 'calling UBER' has become a habit, even if transportation is easily available.

[anjan_c2007]

Another link here from Indian Express that says "Uber used kill switch" elaborating "The Guardian" find about the "Underbelly of Uber".

The kill switch is country specific. It thwarted and crippled passing of any information from their Hqs in The Netherlands to the targeted country, where the local arm in conflict with law was asked by the Hqs to cooperate.

It's like the old Bollywood films with the junior villain/s in the field doing the antics to trouble the hero, heroine and their families. Whereas, the senior villain in control at a remote location, ensconced within his luxurious den is giving the commands, treating the junior villain/s as puppets at his beck and call.

The link:-

https://indianexpress.com/article/ex...india-8021187/

[Raghu M]

Originally Posted by DigitalOne

With Uber/Ola I am paying a lot less than I used to.

Before Uber/Ola era, if I get down at Blr City or Cantonment station, I had to haggle with the union/pettai auto-wallahs. Auto drivers who are not part of the union will not be allowed to pick up passengers. There used to be (still there?) the prepaid auto stand where you had to pay for farthest point of your locality, an addition of 3 kms in my case. 10 PM - 5 AM was 1.5 times the meter rate.

Long story short, I have paid more to the prepaid Auto system in 2007 than I pay now to Uber/Ola, especially for railway station trips.

Yes, cancellations and unreliable service has become a huge issue in recent times, but fares are still reasonable compared to the local auto-wallahs. If you still don't believe me, come out of an IT office and ask the pettai autos idling outside.

ps : Pettai (Tamil) - Local area.

This is comparative. It's just like earlier my rent was 50K because I had a greedy owner but now since I have a cool owner I am only paying 30K. The average in that area could only be 20K. Auto wallahs in Bangalore are notorious I agree but just because Uber is charging less than their ridiculous amounts doesn't mean Uber is right. Uber has never charged less except for rides that have coupons.

The bad part is all the surge fares, astronomical fares during peak traffics and rains are tracked through their algorithms. So, technically Uber will fleece you when you are in the most need of it. And the drivers do not get a penny extra. They are only paid their percentage on normal fares while the surge fare difference is taken by Uber. Some might argue that it is demand vs. supply and that they are doing a business. But bottom line is there are some ethics that you need to abide by while doing business. Now since they have thrown ethics out of the window, it has come back haunting them. Classic case of 'look for profits in the short term but ignore the long term losses'.

[ninjatalli]

Originally Posted by condor

One question:

How is affecting us, the users ? What is the effect of this here in India ? How much more are we paying than we should be ?

I think the answer varies on where the person is intending to travel to and at what time of the day he is traveling to.

In Bombay
- Uber (/Ola) turned out to be more expensive when I was heading towards SoBo (my office location) or more importantly when I'm hailing an Uber in SoBo. The local Kaali-Peeli (taxi or even the auto) generally turns out cheaper and is relatively easier to get one; irrespective of wherever you are in Bombay

- Uber turns out to be cheaper when I'm heading towards the airport but more expensive when I'm heading out from the airport. The local auto or the the taxi is much more economical, even after agreeing to pay a bit more

In Chennai
- Uber turns out to be cheaper irrespective of wherever I go as compared to the local auto. However getting an Uber is a pain as many just cancel the ride

In Bangalore
- Uber turn out to be cheaper for rides within the city but are a pain to get one with numerous cancellations.
- Uber is much more expensive for/from the airport than the pre-booked taxi that Chetan and others have mentioned

So I don't think we have one answer. Honestly I think if Ola wasn't there to give competition to Uber in India, we now would have been in deep soup, dependent on Uber who would have pushed out the local competition using VC funds. Thank god for competition.

[Chetan_Rao]

Originally Posted by ninjatalli

...
- Uber is much more expensive for/from the airport than the pre-booked taxi that Chetan and others have mentioned...

Cost is one aspect, I value reliability higher. I don't mind paying extra for hassle-free service.

On the recent trip I mentioned, I'd booked an Uber as backup (3 AM ride so better safe than sorry ). I was halfway to the airport in my QuickRide cab while Uber was still stuck on 'finding you a cab' screen until I canceled it.

I don't trust Uber/Ola in general anymore, and esp. for time-sensitive rides.

[ninjatalli]

Originally Posted by Chetan_Rao

Cost is one aspect, I value reliability higher. I don't mind paying extra for hassle-free service.

...

I don't trust Uber/Ola in general anymore, and esp. for time-sensitive rides.

100% agree. Reliability is a big Q with both Uber & Ola, even more with players like DriveU (in spite of booking in advance).

Unfortunately, unlike Bombay, I can't depend on local cabs/autos for in-city travel in Bangalore. Need to start getting comfortable with those intra-city buses (only been using the metro and AC buses to/from the airport).

[RedTerrano]

I rarely use Uber/Ola. My wife does. Very frequently.
Going by the screaming, unconstitutional words and too much sugar coated requests to drop her at the airport early in the morning, I deduce the following

1. Uber was good once upon a time
2. But they got cocky. Thank god Ola was on the scene. Competition drives up quality and all that.
3. Uber has started acting up again. Too many rides cancelled at the last moment.
4. Too many rides cancelled after the driver calls to find out source and destination, which I understand from the wisest one, illegal
5. Haven't heard anything specifically bad about Ola, but the latest wisdom is all of them are birds of the same feather and she doesnt want to talk about it

So until this mess (whatever it is) is sorted out, I do not see any escape from early morning drops to the airport. Sigh!

[kiku007]

Everyone knows Uber but do you know about Uber Files? Check out The Guardian's article for the details if you are interested. It may not be surprising but it certainly was insightful.

Trove of documents leaked to the Guardian cast light on firm’s operations at height of its global rise

• More than 124,000 confidential documents leaked to the Guardian
• Files expose attempts to lobby Joe Biden, Olaf Scholz and George Osborne
• Emmanuel Macron secretly aided Uber lobbying in France, texts reveal
• Company used ‘kill switch’ during raids to stop police seeing data
• Former Uber CEO told executives ‘violence guarantees success’

Links:

https://www.theguardian.com/news/202...bying-campaign

https://www.theguardian.com/news/2022/jul/10/what-are-the-uber-files-guide?

https://youtu.be/A14Vls_Y6ck