In litigation, the City of San Francisco and City of Los Angeles reported that Uber in January 2013 agreed with the California Public Utilities Commission not to transport passengers onto airport property unless granted permission by the relevant airport authority. Uber obtained no such permission from Los Angeles International Airport or San Francisco International Airport as of December 2014. Despite the CPUC agreement and a cease-and-desist letter from the San Francisco International Airport, Uber continued operation. The cities described Uber’s conduct as “intransigent refusal” to follow the law.
Arbitration clauses repeatedly criticized by federal judges
Multiple judges criticized Uber’s requirement that passengers and drivers resolve disputes only in arbitration, foregoing lawsuits, group lawsuits such as class actions, trial by jury, and other standard legal protections.
In Meyer v. Uber, Judge Rakoff remarked that Uber’s arbitration requirement is “by no means prominently displayed on Uber’s registration screen” and that the presentation of the requirement is “obscure” and “inconspicuous” (2016 WL 4073012 at *8).
In Mohamed v. Uber, Judge Chen repeatedly criticized Uber’s arbitration requirement, finding it “both procedurally and substantively unconscionable, and therefore unenforceable as a matter of California law.” Among other concerns, Chen noted that the arbitration clause required drivers to pay half the cost of arbitration, that confidentiality clauses disproportionately benefited Uber, that a carve-out for intellectual property claims solely benefited Uber, and that Uber retained a right of unilateral modification. Chen later reviewed Uber’s proposed revision, found it unsatisfactory, and insisted on further revisions. Chen also criticized Uber’s communication with drivers about the arbitration clause under litigation, without court approval.
Hired a private investigator to investigate litigation adversaries
Uber hired a private investigator to interview friends and colleagues of Stephen Meyer, plaintiff in class action litigation against Uber, as well as Meyer’s attorneys. Interviewing acquaintances and professional colleagues, the PI falsely claimed to be “profiling top up-and-coming” leaders and conducting “real estate market research.” When plaintiff’s counsel learned about these inquiries and asked Uber’s counsel whether Uber had hired a PI, Uber attorneys claimed “Whoever is behind these calls, it is not us.” But as evidence mounted, Uber eventually admitted to having initiated the investigation.
In criticizing Uber’s decision to “hire unlicensed private investigators to conduct secret personal investigation of both the plaintiff and his counsel” as well as the “blatant misrepresentations” and “false pretenses” of the investigation, federal judge Jed Rakoff found “sufficient basis to suspect that Ergo had committed fraud in investigating plaintiff through the use of false pretenses” and that Uber’s instructions had furthered the fraud. Uber paid an undisclosed sum to plaintiff and plaintiff’s attorneys to resolve this misconduct.
Rakoff’s decision indicates that Uber’s investigation of Meyer and his attorneys was initiated by Uber then-General Counsel Salle Yoo who sought assistance from Chief Security Officer Joe Sullivan.
Private investigator’s report. Uber staff communicated with private investigator using Wickr, a self-deleting messaging app, though some messages were recovered during subsequent litigation.
Meyer v. Kalanick – litigation docket
Promised service by scantily-clad female drivers
Uber’s Lyon, France office offered a promotion called “Avions de Chasse” (“Hot Chick”) in which a passenger could request an Uber vehicle driven by a scantily-clad woman.
Buzzfeed preserved Uber’s marketing material for this service and this offer.
Charged nonexistent “Airport Fee Toll” for journeys to SFO
Through October 2014, Uber charged passengers a $4.00 “Airport Fee Toll” to travel to San Francisco International Airport, although there was no such fee charged by the airport, city, or anyone else. The city reported that some drivers (though by all indications not many) had permission to operate commercially at SFO, but that they paid $3.85 at most in fees to SFO. Uber always charged more—indeed, as much as $8 if two passengers shared an UberPool vehicle to SFO.
Charged nonexistent “Logan Massport Surcharge & Toll”
In 2013-2014, Uber charged a nonexistent $8.75 “Logan Massport Surcharge & Toll” for rides to or from Boston’s Logan airport. Uber’s web site said was to “cover… Massport fees and other costs related to airport trips.” But neither Massport nor Logan airport charged any such fees. Furthermore, Uber charged an “East Boston Toll” of $5.25, but the largest toll any UberX driver was actually obliged to pay was $3.50. Uber reimbursed drivers for the actual toll and retained the remainder.
Cullinane et al v. Uber Technologies, Inc. No. 1:14-cv-14750-DPW. Massachusetts District Court. December 30, 2014. Complaint. Supreme Court briefing as to Uber’s motion to compel arbitration and avoid litigation (also restating and summarizing merits of the case).
Then-CEO Travis Kalanick boasted about sexual desirability
When a GQ interviewer asked Uber then-CEO Travis Kalanick about the company’s rise making him increasingly desirable to women, he responded “Yeah, we call that Boob-er.”
Analyzed customers’ “Rides of Glory”
Uber staff analyzed passengers’ rides to and from unfamiliar overnight locations to chronicle and tabulate one-night-stands. Uber explained the methodology: “A RoGer [Ride of Glory user] is anyone who took a ride between 10pm and 4am on a Friday or Saturday night, and then took a second ride from within 1/10th of a mile of the previous nights’ drop-off point 4-6 hours later (enough for a quick night’s sleep).”
Uber counted the number of such users in various cities, then assessed the most common such neighborhoods and which weekends have the most ROG’s. Uber published the analysis, including highlighted neighborhood maps, on a corporate blog.
Who’s Driving You? preserved Uber’s since-deleted “Rides of Glory” blog post.
Proposed to “dig up dirt” on reporters
Uber Senior Vice President of Business Emil Michael proposed spending $1 million to target reporters who wrote unfavorable stories about Uber. In particular, Emil proposed to hire researchers and journalists who would publish unflattering research about the reporters’ personal lives.
Coverage from The Verge.
See also Mike Isaac’s Super Pumped (p. 164), reporting specific subjects on which Michael sought opposition research, including a journalist’s marriage and her relationship with her business partner.