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

“When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine.”

Scarlett Johansson says that OpenAI approached her to use her voice

The European venture capital firm raised its fourth fund as fund as climate tech “comes of age.”

ETF Partners raises €284M for climate startups that will be effective quickly — not 20 years down the road

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft wants to make Windows an AI operating system, launches Copilot+ PCs

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back