More Trouble at UBER


Uber’s Issues Continue

In June, we commented on Trouble at Uber emanating from allegations that Uber did not act on gender discrimination and sexual harassment complaints and that a culture of retaliation existed at the ride sharing company.

Now they are facing more issues,  it has been revealed that they concealed a huge data breach.  Uber has confirmed that the breach impacted 57 million customers and drivers.  The breach happened in 2016 and Uber’s former CEO Travis Kalanick knew about it, but did nothing.  Worse, they paid hackers $100,000 to keep the breach secret.  Uber has offered its drivers free credit monitoring protection, but impacted customers will not be given the same.

Uber’s current CEO Dara Khosrowshahi has commented “None of this should have happened, and I will not make excuses for it. While I can’t erase the past, I can commit on behalf of every employee that we will learn from our mistakes.”  But will anyone believe him?

The bigger problem here is this is the second time Uber has demonstrated poor judgement and bad corporate responsibility in a major way.  In the UK the Information Commissioner’s Office has commented that Uber’s admission about the date breach “raises huge concerns around its data protection policies and ethics”.

We live in a world where the pace of change is unprecedented. Uber’s rise has been referred as meteoric. Will this latest revelation be the tipping point toward a meteoric demise?

Uber is not without competition.  For example, in mid-November Lyft announced that it is expanding and launching in Toronto and said that it plans to launch in Hamilton, ON by the end of the year and have more than 100 vehicles on the roads there.  It is possible Uber will get past this latest storm of controversy, but maybe not.   Remember Enron?  Unacceptable corporate ethics was the root of its demise.

Once again we see evidence that the world needs more leaders worth following.  If you agree, why not join Ottawa’s Leadership Community at Leadercast 2018.

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Francis Liska
CEO OTUS Group | OTUS Group
Francis is a Chartered Professional Accountant, Certified General Accountant, Certified Information Systems Auditor, Certified Internal Control Auditor and a Certified Management Consultant. He holds a degree in Business Administration from Cape Breton University and a Post Graduate Diploma in Applied Information Technology. He has also completed graduate studies in decision analysis at Carleton University.

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