Featured Article

Leaked Uber Files reveal history of lawbreaking, lobbying and exploiting violence against drivers

‘Sometimes we have problems because, well, we’re just fucking illegal.’

Comment

Travis Kalanick
Image Credits: Qilai Shen/Bloomberg via Getty Images

Thousands of leaked confidential files reveal a treasure trove of sketchy and unlawful behavior from Uber. The Uber Files, which were originally shared with The Guardian and the International Consortium of Investigative Journalists, show a company that has knowingly broken laws, gone to extreme lengths to avoid justice, secretly lobbied governments, received aid from top politicians and exploited violence against drivers to drum up business.

The damning leak of more than 124,000 documents, now known as the Uber Files, spans a five-year period between 2013 and 2017. It covers Uber’s operations across 40 countries when Uber was still run by co-founder Travis Kalanick, who took an aggressive approach to bringing the ride-hailing service into cities around the world, even when doing so would break local laws and taxi regulations.

Mark MacGann, a lobbyist who led Uber’s push to win over governments in Europe, the Middle East and Africa, has come forward as the source who leaked the documents, according to The Guardian. He decided to speak out because he believes Uber knowingly broke laws in dozens of countries and misled people about the driver benefits of the gig worker model.

“I am partly responsible,” MacGann told The Guardian. “I was the one talking to governments, I was the one pushing this with the media, I was the one telling people that they should change the rules because drivers were going to benefit and people were going to get so much economic opportunity.”

The Uber Files, which include 83,000 emails and 1,000 other files including conversations, reveal for the first time Uber’s $90 million-a-year lobbying and public relations campaigns to gain the support of world leaders, such as French President Emmanuel Macron, in order to disrupt Europe’s taxi industry.

In a statement, Uber spokesperson Jill Hazelbaker acknowledged the many mistakes made by Uber under the stewardship of Kalanick, but that his replacement, Dara Khosrowshahi, was “tasked with transforming every aspect of how Uber operates” and has “installed the rigorous controls and compliance necessary to operate as a public company.”

“We have not and will not make excuses for past behavior that is clearly not in line with our present values. Instead, we ask the public to judge us by what we’ve done over the last five years and what we will do in the years to come,” she said.

In the past five years, the company has continued to spend millions on lobbying and marketing campaigns so it can go on treating its drivers as independent contractors, rather than employees. The company also recently shot down a shareholder proposal to gain transparency around Uber’s lobbying efforts.

Contrary to Hazelbaker’s statement that Uber is a company reformed since 2017 — which is when Kalanick resigned as CEO amid a storm of concerns about Uber’s workplace culture, including allegations of sexual harassment, racial discrimination and bullying — Uber has continued to operate its service as is, even when local laws stipulate drivers must be treated as employees. And, despite violent protests and attacks on drivers that date well beyond 2017, Uber has continued to operate in countries and cities where local regulators say drivers must have a license to operate a taxi service.

Let’s break down some of what’s inside the Uber Files.

‘Emmanuel’ and ‘Travis’ on a first-name basis

Paris was the first European city that Uber launched in, and the city fought hard against the new tech company. French taxi drivers staged protests that often turned violent. But Macron, who in 2014 had just been appointed minister for the economy, thought Uber would help create new jobs and economic growth. After meeting with the company’s lobbyists that October, Macron became a champion for Uber’s interests within government, one who would work to rewrite laws in Uber’s favor, the files show.

MacGann, the whistleblower, at the time described the meeting as “spectacular. Like I’ve never seen,” and said, “Lots of work to come, but we’ll dance soon.”

Macron and Kalanick, who soon were on a first-name basis, met at least four times, according to the files, including in Paris and at the World Economic Forum in Davos, Switzerland.

“The openness and welcome we receive is unusual in government-industry relations,” Uber wrote to Macron, noting that it was “extremely grateful” for its kind treatment.

During that year, Macron worked with Uber to rewrite France’s laws governing its services. Uber had launched UberPop, a service that allowed unlicensed drivers to offer rides at a discounted price. The service was banned by the government initially, but as is Uber’s way, it kept the service going as it challenged the law.

“Uber will provide an outline for a regulatory framework for ridesharing,” an email from Kalanick to Macron reads. “We will connect our respective teams to start working on a feasible proposal that could become the formal framework in France.”

When, in June 2015, the taxi driver protests became violent, Macron texted Kalanick saying that he would “gather everybody next week to prepare the reform and correct the law,” according to the files. On the same day, Uber suspended UberPop in France. Later that year, Macron signed off on a decree relaxing requirements for licensing Uber drivers.

A spokesperson for Macron said in an email to the BBC: “His functions naturally led him to meet and interact with many companies engaged in the sharp shift which came out during those years in the service sector, which had to be facilitated by unlocking administrative and regulatory hurdles.”

Aside from Macron, the files also reveal how Neelie Kroes, an ex-EU digital commissioner and one of Brussels’ top officials, was talking to Uber about joining the company before her term ended. Kroes also apparently secretly lobbied for the firm, which potentially breaches EU ethics rules.

‘Violence guarantees success’

The leaked files reveal a cache of incredibly frank and direct conversations between Kalanick and other top officials that reveal a number of unethical practices and disdain for officials who didn’t commit to aiding Uber. Perhaps those that are most jarring are the ones that seem to exploit violence against drivers.

In one exchange, Uber executives warned against sending drivers to a protest in France which could lead to violence from angry taxi drivers.

“I think it’s worth it,” wrote Kalanick. “Violence guarantee[s] success.”

In a statement, Kalanick’s spokesperson said he “never suggested that Uber should take advantage of violence at the expense of driver safety…Any accusation that Mr. Kalanick directed, engaged in, or was involved in any of these activities is completely false.”

One former senior executive told The Guardian that Uber’s decision to send drivers into potentially dangerous protests, knowing the risks, was consistent with the company’s strategy of “weaponizing” drivers and exploiting the violence to “keep the controversy burning.”

The leaked emails suggest that such a strategy was repeated in Belgium, Italy, Spain, Switzerland and the Netherlands. For example, when masked men, reportedly angry taxi drivers, attacked Uber drivers with knuckle-dusters and a hammer in Amsterdam in March 2015, Uber used the violence to try to win concessions from the Dutch government, the files show.

Uber encouraged driver victims to file police reports, which were shared with leading Dutch daily newspaper De Telegraaf.

“[They] will be published without our fingerprint on the front page tomorrow”, one manager wrote. “We keep the violence narrative going for a few days, before we offer the solution.”

Hazelbaker acknowledged that the company had mistreated drivers in the past, but that didn’t mean anyone wanted violence against them.

“There is much our former CEO said nearly a decade ago that we would certainly not condone today,” she said. “But one thing we do know and feel strongly about is that no one at Uber has ever been happy about violence against a driver.”

The ‘kill switch’

Despite Uber’s public-facing mask of innocence and attempts to define angry taxi drivers and regulated taxi markets as “cartels,” the company appears to have known that it was operating illegally in many cities.

Internal emails reveal staff referring to Uber’s “other than legal status,” and other forms of operating services against regulations in countries including the Czech Republic, France, Germany, Spain, South Africa, Sweden, Turkey and Russia.

One senior executive wrote in an email: “We are not legal in many countries, we should avoid making antagonistic statements.” Another executive wrote: “We have officially become pirates,” in response to the strategies Uber deployed to “avoid enforcement.”

A message to a colleague in 2014 by Nairi Hourdajian, Uber’s head of global communications, even went so far as to say: “Sometimes we have problems because, well, we’re just fucking illegal.”

Regulatory agencies, police and transport officials around the world worked to clamp down on Uber. Some officials would download the app and hail rides so they could pull sting operations on unlicensed taxi journeys and fine Uber or impound drivers’ cars. Offices in dozens of countries were raided by authorities.

That’s where the “kill switch” came in. If law enforcement came to access the company’s computers, Uber would activate a “kill switch” that would restrict officers’ access to sensitive company data like lists of drivers, which Uber thought would harm its growth.

The files reveal that Kalanick asked staffers to hit the kill switch “ASAP” in Amsterdam at least once, according to an email from his account. They also reveal that this technique, which Uber’s lawyers and regulatory departments vetted and signed off on, was used at least 12 times during raids in Belgium, France, India, Hungary, the Netherlands and Romania.

Kalanick’s spokesperson said in a statement that such protocols are common business practice that protect intellectual property and customer privacy, and are not designed to obstruct justice. She also noted that Kalanick “has never been charged in any jurisdiction for obstruction of justice or any related offense.”

(Kalanick has been charged in the past on allegations that he paid hackers $100,000 to cover up a heist that stole personal information from about 57 million of Uber’s users and drivers in 2016.)

Text messages and emails between executives detail multiple other instances in which Uber used the kill switch. For example, in March 2015 in Uber’s Paris office, a “big force (around 25)” of police officers showed up and were “trying to get into laptops,” according to an email from then-lobbyist MacGann to David Plouffe, former Obama aide who joined Uber as head of global branding, communications and policy the year prior.

“Access to IT tools was cut immediately, so the police won’t be able to get much if anything,” MacGann told Plouffe.

In July that year, messages between MacGann and Thibaud Simphal, then-manager of France and now-head of Uber’s global sustainability unit, offer a particularly revealing exchange.

“Use the ‘Zachary De Kievit’ playbook:” he wrote, referencing an Uber attorney. “Try a few laptops, appear confused when you cannot get access, say that IT team is in SF and fast asleep, and anyway this is all controlled by UberBV so they should write to Uber BV with their request. Zac can give a signed copy of his book.”

Simphal’s response: “Oh yeah we’ve used that playbook so many times by now the most difficult part is continuing to act surprised!”

This story has been updated with details from the whistleblower, Mark MacGann. 

More TechCrunch

Cloudera, the once high flying Hadoop startup, raised $1 billion and went public in 2018 before being acquired by private equity for $5.3 billion 2021. Today, the company announced that…

Cloudera acquires Verta to bring some AI chops to its data platform

The global spend management sector is experiencing a tailwind of sorts. North America is arguably the biggest market in this space, but spend management companies have seen demand rise across…

Spend management startup SiFi raises $10M to grow further in Saudi Arabia

Neural Concept lets designers model how components will perform before they can be manufactured.

Swiss startup Neural Concept raises $27M to cut EV design time to 18 months

The StrictlyVC roadtrip continues! Coming off of sold-out events in London, Los Angeles, and San Francisco, we’re heading to Washington, D.C. for a cozy-vc-packed, evening at the Woolly Mammoth Theatre…

Don’t miss StrictlyVC in DC next week

X will now allow users to post consensually produced NSFW content as long as it is prominently labeled as such.

X tweaks rules to formally allow adult content

Ashby consolidates existing talent acquisition tools and leans heavily on AI to automate the more repetitive steps in the recruitment pipeline.

Ashby injects recruiting with a dose of AI

Spotify has announced it’s hiking subscriptions for customers in the U.S., the second such price increase in the space of a year. The music-streaming giant reports that premium pricing will…

Spotify to increase premium pricing in the US to $11.99 per month

Monzo has announced its 2024 financial results, revealing its first full-year pre-tax profit. The company also confirmed that it’s in the early stages of expanding into the broader European market…

UK neobank Monzo reports first full (pre-tax) profit, prepares for EU expansion with Dublin hub

Featured Article

Inside Apple’s efforts to build a better recycling robot

Last week, TechCrunch paid a visit to Apple’s Austin, Texas manufacturing facilities. Since 2013, the company has built its Mac Pro desktop about 20 minutes north of downtown. The 400,000-square-foot facility sits in a maze of industry parks, a quick trip south from the company’s in-progress corporate campus. In recent years, the capital city has…

6 hours ago
Inside Apple’s efforts to build a better recycling robot

Early attempts at making dedicated hardware to house artificial intelligence smarts have been criticized as, well, a bit rubbish. But here’s an AI gadget-in-the-making that’s all about rubbish, literally: Finnish…

Binit is bringing AI to trash

Temasek has previously invested in Lenskart, and this new funding follows a $500 million investment by the Abu Dhabi Investment Authority last year.

Temasek, Fidelity buy $200M stake in Lenskart at $5B valuation

Less than one year after its iOS launch, French startup ten ten has gone viral with a walkie talkie app that allows teens to send voice messages to their close…

French startup ten ten reinvents the walkie-talkie

Featured Article

Unicorn-rich VC Wesley Chan owes his success to a Craigslist job washing lab beakers

While all of Wesley Chan’s success has been well-documented over the years, his personal journey…not so much. Chan spoke to TechCrunch about the ways his life impacts how he invests in startups.

22 hours ago
Unicorn-rich VC Wesley Chan owes his success to a Craigslist job washing lab beakers

Presumptive Republican presidential nominee Donald Trump now has an account on the short-form video app that he once tried to ban. Trump’s TikTok account, which launched on Saturday night, features…

Trump takes off on TikTok

With fewer than 400,000 inhabitants, Iceland receives more than its fair share of tourists — and of venture capital.

Iceland’s startup scene is all about making the most of the country’s resources

Kobo put out a handful of new e-readers a few weeks back: color versions of the excellent Libra 2 and Clara, as well as an updated monochrome version of the…

Kobo’s new e-readers are a sidegrade most can skip (with one exception)

In an interview at his home near Reykjavík, the entrepreneur-turned-VC shared thoughts on his ventures and the journey that led him from Unity to climate tech, a homecoming of sorts.

Unity co-founder David Helgason’s next act: Gaming the climate crisis

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. Over the past eight years,…

Fisker collapsed under the weight of its founder’s promises

What is AI? We’ve put together this non-technical guide to give anyone a fighting chance to understand how and why today’s AI works.

WTF is AI?

President Joe Biden has vetoed H.J.Res. 109, a congressional resolution that would have overturned the Securities and Exchange Commission’s current approach to banks and crypto. Specifically, the resolution targeted the…

President Biden vetoes crypto custody bill

Featured Article

Industries may be ready for humanoid robots, but are the robots ready for them?

How large a role humanoids will play in that ecosystem is, perhaps, the biggest question on everyone’s mind at the moment.

2 days ago
Industries may be ready for humanoid robots, but are the robots ready for them?

VCs are clamoring to invest in hot AI companies, and willing to pay exorbitant share prices for coveted spots on their cap tables. Even so, most aren’t able to get…

VCs are selling shares of hot AI companies like Anthropic and xAI to small investors in a wild SPV market

The fashion industry has a huge problem: Despite many returned items being unworn or undamaged, a lot, if not the majority, end up in the trash. An estimated 9.5 billion…

Deal Dive: How (Re)vive grew 10x last year by helping retailers recycle and sell returned items

Tumblr officially shut down “Tips,” an opt-in feature where creators could receive one-time payments from their followers.  As of today, the tipping icon has automatically disappeared from all posts and…

You can no longer use Tumblr’s tipping feature 

Generative AI improvements are increasingly being made through data curation and collection — not architectural — improvements. Big Tech has an advantage.

AI training data has a price tag that only Big Tech can afford

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: Can we (and could we ever) trust OpenAI?

Jasper Health, a cancer care platform startup, laid off a substantial part of its workforce, TechCrunch has learned.

General Catalyst-backed Jasper Health lays off staff

Featured Article

Live Nation confirms Ticketmaster was hacked, says personal information stolen in data breach

Live Nation says its Ticketmaster subsidiary was hacked. A hacker claims to be selling 560 million customer records.

3 days ago
Live Nation confirms Ticketmaster was hacked, says personal information stolen in data breach

Featured Article

Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

An autonomous pod. A solid-state battery-powered sports car. An electric pickup truck. A convertible grand tourer EV with up to 600 miles of range. A “fully connected mobility device” for young urban innovators to be built by Foxconn and priced under $30,000. The next Popemobile. Over the past eight years, famed vehicle designer Henrik Fisker…

3 days ago
Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

Late Friday afternoon, a time window companies usually reserve for unflattering disclosures, AI startup Hugging Face said that its security team earlier this week detected “unauthorized access” to Spaces, Hugging…

Hugging Face says it detected ‘unauthorized access’ to its AI model hosting platform