Uber is facing growing criticisms concerning the way it functions. In June, its founder, Travis Kalanick, stepped down amidst a polemic on his managerial practices; accused of doing little to prevent sexism and discrimination from thriving within the company. A video of him appearing to insult an Uber driver was also released, sparking the public’s indignation.
On September the 22th, Uber was forbidden to operate in London by Transport for London, a public entity. Uber was accused to not taking seriously sexual assaults committed by its drivers. In a number of cases, the Californian company has obstructed justice and has dragged its feet when it has had to cooperate.
In addition, it’s been alleged that the company has not done enough to control its drivers’ good health and ability to ensure the security of customers. The company’s use of software enabling it to detect and avoid police checks has convinced Transport of London that Uber considers itself above the law.
In Quebec, the company has to cope with another hardship: the government from now on requires Uber to extend the driving formation time from 20 to 35-hours, to check criminal records of its drivers, and to inspect all vehicles at least once a year.
Uber isn’t exactly accepting these judgements lying down. Instead, it is fighting back — and fighting back hard. In Quebec, it is reportedly threatening to cease its activities if the government does not withdraw its rules.
Ironically, Uber is doing the exact opposite in London: it is instead doing everything it can to be allowed to stay. They have appealed the Transport for London’s decision. Uber masters the legal ground; helped by an army of lawyers, it systematically appeals every decision that goes against its interests, thereby gaining time and money.
In 2016, a British judge stated that Uber’s drivers are its employees, not independent contractors and are thus eligible for minimum wage and a set of rights. But the decision is still not enforced as it has been appealed by Uber.
Uber often wins in the courts, finding contradictions in the law or playing on its vagueness. They have recently won against Austin and the State of Maryland which were both requiring tougher controls on drivers, just like Quebec.
In London, they have also launched a petition calling Londoners to support them which has been signed by 750,000 people in only three days. This underlines the success of Uber’s new communication strategy. They have shaped a very attractive image of their company.
The bad buzz resulting in the resignation of Travis Kalanick has been quickly forgotten. He has been replaced by Dara Khosrowshahi — an experienced and consensus-building CEO, known to be patient and humble. Just as in London, Uber is supported by thousands of devoted fans in every city it operates in.
It remains to be seen then, what the effects of these legal actions will be. Though it may win in court, arguably, it is Uber’s popularity with consumers on which the company depends. What effect this aggressive legal strategy will have on this popularity remains unknown, but with the fight with Transport for London now ramping up, it should shortly be revealed.
