Uber’s High-Risk Business Tactics Backfire

By Matthew Talarico,
Technology & Innovation Writer

Uber is no stranger when it comes to getting in trouble with the law. Recently, a lawsuit was filed in California federal courts by a Texas-based retirement fund, blaming Uber for taking high-risk business tactics meant to promote short-term growth, and were undisclosed to investors. The controversies resulted in an $18 billion loss in market value over the course of the year. One of these controversies includes programs called “Greyhound” and “Hell”, which were used to evade law enforcement and track competitors such as Lyft in nearby areas.

The lawsuit filed by the Texas-based retirement fund is just another lawsuit inherited by Dara Khosrowsashi, the newly appointed CEO of Uber. Lately, Uber’s license to operate in London was revoked. While many of their licenses have been blocked or taken away in order to protect taxicab drivers, the city of London withdrew Uber’s license to operate due to lack of corporate responsibility which include criminal offenses by employees, and insufficient driver background checks. After a meeting with the head of transportation of London, Uber was convicted of bribery.

Many of the business tactics enacted by Uber could be seen as unethical, and sometimes illegal. In the business world, finding loopholes is key to getting even further ahead, which could be seen through Uber’s quick rise to such a large corporation. For the future, customers can only hope to see an industry that inhabitants healthy competition and prices.

A version of this article appeared in the Tuesday, November 7th print edition.

Contact Matthew at
matthew.talarico@student.shu.edu

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