Uber steps down for the first time, choosing not to fight in Portland in lieu of an effort to work with the city to find a middle ground.
Uber is a beleaguered company. Across the globe, more and more cities are forcing the app-based transportation and taxi enterprise to suspend services. Internationally, cities such as Brussels in Belgium and New Delhi in India have banned the service, while entire countries such as Spain and Thailand have done the same. In the United States, cities such as Little Rock and Las Vegas have prohibited the taxi service.
Now, despite its reputation as unafraid to face down threats of legislation, regulation, and litigation, Uber is voluntarily suspending service for 3 months in Portland. This move in Oregon’s largest city marks the first time the ride-share company has chosen on its own to stop operations.
Although it is only speculation, it is possible Uber is finally reacting to a recent rash of bad headlines from around the globe. Yesterday, an Uber driver was arraigned in Boston for raping and assaulting a young woman on the night of Dec. 6. In Boston alone, this was the fourth report by an Uber customer of assault or inappropriate behavior, just in the past month.
Also earlier in December, a man in New Delhi was arrested for raping a passenger, leading almost immediately to a citywide ban. Recent events in India have led to a heightened sensitivity to sexual assault and the subject of women’s safety. Stories like these place Uber on the defensive.
Multiple reports of assault and sexual assault are not the only problems facing Uber. Taxi unions are turning out to be fierce opponents to the competition they are facing from Uber, who is itself facing competition from other app-based ride-sharing services like Lyft and Sidecar. Taxi unions were the apparent instigators of the court-ordered injunction in Nevada which saw the company lose their major growth opportunities in Reno and Las Vegas.
Travis Kalanick, Uber’s CEO and founder, is almost unprecedented in his willingness to fight his company’s various opponents. When the company was first founded in San Francisco, where it is still based, Kalanick refused to suspend Uber’s services despite a cease-and-desist order from the California Public Utilities Commission and from San Francisco’s Municipal Transportation Agency.
In fact, this refusal to stop in the face of court orders and pending litigation has been a model for Uber in countless cities across the globe. There is further evidence that a certain ready-for-war attitude is prevalent at Uber and that this culture of aggression is coming all the way from the top. Last month, Emir Michael, a top executive at the company, suggested he would hire researchers to investigate journalists in a concerted effort to obtain damning personal details. These details could be used against any journalist who would dare to write a negative story about the company and would, he suggested, especially target female reporters.
Perhaps this is why the backlash seems to be uniquely strong as news reports abound with Uber’s battles. Whatever the reason the company is facing such a tireless parade of bad press, whether justified or exaggerated, Uber remains a force to be reckoned with. The company now operates in over 200 cities, 51 countries, and is estimated to be worth over $18 billion. So, while Uber’s move to step down in Portland is certainly a first for the company known for its battle-ready stance, it is still much too early to declare victory for its growing army of opponents.
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