* By Sydney P. Freedberg, Nicole Sadek, Brenda Medina, Agustin Armendariz and Karrie Jehoe
Documents leaked to ICIJ (International Consortium of Investigative Journalists) show how Uber pressured international leaders and dodged investigations while expanding internationally.
The investigation, called Uber Filesshows that the company held meetings with political leaders –often in secret–, misled investigators and subverted workers’ rights by entering new markets.
The consortium of journalists had access to emails, text messages, company presentations and other documents from 2013 to 2017.
Among the main findings of the investigation are:
- Uber executives activated the so-called “kill switch” to cut off access to company employees and prevent authorities from seizing evidence during operations in offices in at least 6 countries;
- Uber struck deals with oligarchs in a failed attempt to enter the Russian market with Kremlin backing;
- company executives discussed the benefits of exploiting violence against the platform’s drivers to address resistance to its expansion;
- the company sought to divert attention from its tax obligations by helping authorities collect taxes from its drivers while funneling its profits to tax havens such as Bermuda.
In 2014, Uber dominated the ride-sharing market in the United States and aimed to conquer the rest of the world. During the year, the company entered 31 countries and provoked regulatory crises wherever it went.
Instead of going through the traditional licensing process or working to change the laws and regulations governing taxis and similar services, Uber simply started operating. It offered huge discounts to undermine the competition and gave benefits to drivers, reversing them later.
Uber has adopted the mantra, as two people close to the company have said: it’s better to ask for forgiveness than permission.
The guerrilla strategy produced a growing set of challenges that company executives described in a presentation as a “shit pyramid“, composed by “driver actions”, “regulatory investigations”, “administrative procedures” and “direct litigation”.
To overcome the obstacles, Uber built a network of influence, with lobbyists and a global budget of $90 million in 2016 alone, according to the leaked documents.
In all, the new records reveal more than 100 meetings between Uber executives and government officials from 2014 to 2016, including 12 with European Commission representatives that were not publicly disclosed.
- European Commission officials: 34 meetings;
- ministers: 19 meetings;
- Other civil servants: 14 meetings;
- Other politicians: 13 meetings;
- European Commissioners: 9 meetings;
- Presidents, Prime Ministers: 7 meetings;
- High-level civil servants: 4 meetings;
- Vice-Presidents, Deputy Prime Ministers: 4 meetings;
- Members of Parliament: 3 meetings;
- European Director General: 1 meeting.
Records show that Uber executives met with French President Emmanuel Macron, then Israeli Prime Minister Benjamin Netanyahu, then Irish Prime Minister Enda Kenny and then Estonian President Toomas Hendrik Ilves, among other world leaders.
MACRON
Uber faced strict scrutiny from French authorities and strong opposition from taxi services. Anti-Uber demonstrations carried out by taxi drivers turned violent and, in 2014, the National Assembly passed a law that regulated the service of the platform.
It was around this time that Travis Kalanick, then CEO of Uber, met with then French Economy Minister Emmanuel Macron. According to the documents, Macron reportedly told regulators not to be “very conservative”, committing to meet with them to help “correct the law”.
In 2015, police suspended UberX service in Marseille due to clashes with taxi drivers. Mark MacGann turned to Macron, who said he would personally look into the matter. Days later, the revocation was reversed.
Macron’s office said the French service sector was in upheaval at the time due to the rise of platforms like Uber. The office did not respond to questions about the current French president’s relationship with the company.
PRESSURE
When Uber needed political strength to expand, it turned to former local government officials to lobby former colleagues. For example, Jim Messina, former deputy chief of staff to Barack Obama. He became a political consultant in 2013 and had Uber as a client.
The documents show that Messina asked an Uber lobbyist if he should discuss the company’s regulatory problems in Spain with then-Prime Minister Mariano Rajoy. Adrian Durbin, a spokesman for Messina, said he never lobbied for Uber or spoke to any head of state on behalf of the company.
When accused of breaking the rules, the company asked customers to act as grassroots lobbyists and sign petitions.”save uber”. And when his schedule seemed to need a “push”, paid academics to produce favorable research.
Uber resorted to “strategic investors”, people with the money and political connections to influence laws abroad. French telecommunications mogul Xavier Niel invested $10 million and German publisher Axel Springer invested $5 million, as did French fashion mogul Bernard Arnault.
Some Uber lobbyists and consultants were given equity stakes in the company to deliver favorable results, according to the documents.
To achieve these results, they offered public officials discounts on Uber rides, lunchsuper high level”, advice on jobs, free work on political campaigns, campaign contributions and other gifts and perks.
Uber rejected any suggestion that it received special treatment from Macron or his cabinet and emphasized that no one working at Uber today is involved in building relationships with Russian oligarchs.
Kalanick resigned under pressure in 2017. At the time, investors voiced concerns about Uber’s workplace culture, including allegations of sexual harassment, racial profiling and bullying. He remained as director until the end of 2019.
Uber said it focused on “reorient the whole culture” from the company “top to bottom”. The company declared to invest “tightly” in new technologies and other safety features to keep passengers and drivers safe.
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