Bill Gurley, a partner at Benchmark Capital and an early investor, became increasingly concerned about Uber’s tactics and activities. Bloomberg reports that he worried his firm’s investment in Uber, at that point nominally worth billions of dollars, could go to zero.
Board member Arianna Huffington seen as Kalanick’s proxy
After the Uber board forced Kalanick to take leave, Bloomberg reported that other executives and board members suspected that Uber board member Arianna Huffington was serving as his proxy.
Kalanick re-debated with Uber driver, then (without authority) promised equity in Uber
After being caught on video arguing with Uber driver Fawzi Kamel, Kalanick sought to meet with the driver again to try to make things right. Bloomberg reports that Kalanick had planned to meet with the driver briefly, as little as five minutes, for a simple apology. Instead, the meeting lasted more than an hour, and Kamel and Kalanick reopened their debate about Uber’s pricing policies.
As part of the discussion, Kalanick suggested that he give the driver Uber stock. Uber attorneys rejected the proposal, seeing it as improper that Uber shareholders pay to clean up Kalanick’s personal problem. Kalanick ended up paying Kamel $200,000 of personal funds.
Escort bar visit
European Court of Justice said Uber is a transportation service, may be regulated at national level
The European Court of Justice (the highest court in Europe) held that Uber is a transportation service, which may therefore be regulated by each country in Europe. The ECJ explained:
The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport. Member states can, therefore, regulate the conditions for providing that service.
In contrast, Uber had argued that the company was an information technology service, subject only to Europe-wide regulation and exempt from national law.
Acting US Attorney confirmed a “pending criminal investigation” of Uber
A December 2017 letter confirmed a “pending criminal investigation” against Uber by the US Attorney’s Office of the Northern District of California. This was the first official confirmation of such an investigation.
The letter indicated that the US Attorney’s Office had interviewed ex-Uber security analyst Richard Jacobs. See Jacobs’ allegations.
Early investor resigned due to allegations of sexual misconduct
Shervin Pishevar, one of the earliest investors in Uber, resigned from his investment firm (and hence ended his affiliation with Uber) in the face of allegations of sexual misconduct. He denied the allegations.
In November 2017, Bloomberg reported that five women had accused Pishevar of using his position to make unwanted sexual advances.
Banned in Delhi after driver allegedly raped passenger
Uber was temporarily banned in Delhi, India in December 2014 after a driver allegedly took a passenger to a secluded area and raped her. The decision followed mounting accusations that the company had failed to conduct proper background checks on drivers.
Mike Isaac’s Super Pumped (p. 188) presents the incident in greater detail: The driver noticed that the passenger had fallen asleep, and raped her in the back seat of his vehicle. Afterwards, he threatened to murder her if she told the police.
License suspended in Sheffield, UK
The city of Sheffield, UK suspended Uber’s license. Uber said this was an “administrative error” resulting from the company’s failure to change the name on its license based on the departure of the company’s UK head. Sheffield said such a change is not permitted, while Uber said it successfully made this change in other jurisdictions.
Fined $78,000 for wrongfully classifying drivers in Anchorage, Alaska
Uber paid a $78,000 fine September 2015 and suspended service in Anchorage, Alaska after it was determined that the company had wrongfully classified drivers as independent contractors.