“In Silicon Valley, customer privacy had long taken a backseat to companies’ desire to collect data. But Uber took the neglect one step further. Kalanick treated user privacy as an afterthought. At one point, Kalanick changed Uber’s settings so the app could track people even after they had ended their ride.”
The issue of privacy has become part of the modern discourse bringing to attention how apps use or exploit customers’ data. As part of the companies during the boom in Silicon Valley, Uber found itself in the middle of controversy around big data. The ease with which one can order a ride with a tap of a button also allows the application to have excess information. However, how the company proceeds to handle or mishandle personal information is a matter of policy. Under Kalanick, Uber disregarded user privacy crossing the threshold of consumer and information exploitation for market advantage. With competitors such as Lyft, Kalanick crossed the line to have the explosive growth that will make them the market giant.
“On occasion, when a sexual assault victim decided not to pursue litigation or if the evidence in a police report was not conclusive enough to prosecute, a round of cheers would ring out across the fifth floor of Uber HQ.”
The initial controversy that brought to question the ethics of the company was the cases of sexual assault and its corporate culture. Through the blog post published by Sarah Fowler, it was revealed that the company fostered a toxic and misogynistic working environment. With the escalating cases of sexual harassment by the drivers, Kalanick worked unethically to portray a good image of the company. This entailed ignoring cases of sexual assault that had little evidence or working towards avoiding lawsuits. The unethical corporate culture fueled by toxic masculinity created a working environment that translated into how such cases were handled.
“Compliance is one of the most important safeguards a company can have, as it ensures a company acts within the law. But when a company actively seeks out legal “grey areas” during rapid expansion, compliance, by definition, is not a priority.”
Under Kalanick Uber managed to penetrate different markets all over the world in a short period of time. While the company could attribute its success to its groundbreaking innovation it utilized legal loopholes to accomplish this feat. The business model involved growing the company in territories where regulations and clearances were not clear or streamlined. As such, noncompliance becomes part of the model involving a lot of confrontation with authorities and unions. With previous companies that failed in certain aspects, Kalanick used these grey areas to overcorrect through Uber. Furthermore, within the company, Kalanick nurtured a culture of overexerting and overexploiting the workers which was common in Silicon Valley.
