September 24, 2017
Uber Losing Battle in London After Regulator Revokes License
Uber Technologies Inc. was struck with a stunning rebuke in London, where regulators revoked its license to operate and chastised its corporate culture, adding to the expansive list of controversies facing the beleaguered ride-hailing company.
London is one of Uber’s largest and most lucrative markets, with 40,000 drivers and 3.5 million people who use the app once every 90 days. The broadside is a striking move against the free-wheeling business practices that contributed to the ouster of former chief executive officer Travis Kalanick. The company is also grappling with allegations of sexual harassment, labor-rights abuses, skirting regulation, bribery of government officials and a lawsuit accusing it of stealing self-driving car technology.
Transportation authorities in London concluded Uber isn’t “fit and proper to hold a private hire operator license.” The agency cited a failure to do proper background checks on drivers, report crimes and a program called “Greyball” used to avoid regulators.
The company has 21 days to appeal and can continue to operate during the appeal process. “We intend to immediately challenge this in the courts,” said Tom Elvidge, general manager of Uber in London.

Uber has faced resistance in markets from Paris to the Philippines, but London’s ruling is one of the most threatening to date. The decision pits the popularity of the company among millions of customers, against regulators and taxi drivers who want tighter controls.
The outcome also has financial implications for Uber at a time when its backers are in talks for a potential stake from SoftBank Group Corp. and others investors of as much $12 billion. Uber has been valued at about $70 billion.
QuickTake Q&A: Uber Heads to Court Over London License
As Uber has upended the global transportation industry, it has also invited controversy. Authorities faulted Uber earlier this year for allowing a London driver who had sexually assaulted a rider to get back on the road.
Uber’s “approach and conduct demonstrate a lack of corporate responsibility,” the regulator, Transport for London, said in a statement.
The decision was cheered by the city’s traditional black cab industry, which has been hurt by the proliferation of Uber drivers and has aggressively pushed for tighter regulation of the San Francisco-based ride-hailing service. Taxi drivers, many of whom now use the rival apps Gett and MyTaxi, must go through extensive testing before receiving a license, while Uber drivers have fewer requirements.
“All companies in London must play by the rules and adhere to the high standards we expect,” London Mayor Sadiq Khan said in a statement. “Providing an innovative service must not be at the expense of customer safety and security.”
Uber cars have filled London streets since its arrival in the British capital in 2012, identifiable by the smartphones drivers keep holstered to their windshield.
While its corporate image has taken a hit in recent months, city officials are now risking a backlash from customers who find it’s often cheaper and more convenient than hailing a black cab. In a previous showdown with New York City Mayor Bill De Blasio, Uber lobbied its customers to fight proposed restrictions.
Uber has already begun borrowing pages from that playbook. Pierre-Dimitri Gore-Coty, head of Uber’s Europe region, laid out a plan to mobilize supporters through email and social media, and cultivate new allies in politics and business while it drafts a legal challenge, according to an email to staff obtained by Bloomberg. He also said Uber is pushing a Twitter campaign, #SaveYourUber, and an online petition, which gathered more than 300,000 signatories in just a few hours.
“As the date for renewal approached, our team prepared for all scenarios,” Gore-Coty wrote. “While the appeal process could take several months, we are ready to engage in a vigorous legal defense as I know we play by the rules.”
London’s decision adds to the problems facing Dara Khosrowshahi, Uber’s new CEO, who is juggling a host of inherited controversies. Khosrowshahi wrote in a tweet that Uber is “far from perfect” but asked the city to work with the company “to make things right.”
“No company can behave like it’s above the law, and that includes Uber,” said Maria Ludkin, legal director of GMB, the U.K.’s drivers union. “No doubt other major cities will be looking at this decision and considering Uber’s future on their own streets.”
Uber disputed the allegations made by regulators. The company said it conducts thorough background checks of drivers and had made several changes to improve safety. The company also said the Greyball program had never been in the U.K. “for the purposes cited by TfL.”
“By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice,” said Elvidge, the Uber manager in London. “If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport.”
Some are already coming to the defense of Uber. “It’s not in the interests of our economy, people in London and in this case, drivers, to restrict new products and services,” said Tom Thackray, director at the Confederation of British Industry.
Although the conclusion of the ruling may take some time to play out in the U.K. courts, rivals are already circling Uber users. Daimler AG-owned Mytaxi, a black cab hailing app, was offering half-off fares on Friday.
January 14, 2018
Ubers Secret Tool for Keeping the Cops in the Dark
by MeDaryl • Cars • Tags: businessweek, Labor Laws, law, Montreal, NEW YORK TIMES CO-A, Paris, Quebec, San Francisco, Software, technology, U.S. Department of Justice, UBER TECHNOLOGIES INC
In May 2015 about 10 investigators for the Quebec tax authority burst into Uber Technologies Inc.’s office in Montreal. The authorities believed Uber had violated tax laws and had a warrant to collect evidence. Managers on-site knew what to do, say people with knowledge of the event.
Like managers at Uber’s hundreds of offices abroad, they’d been trained to page a number that alerted specially trained staff at company headquarters in San Francisco. When the call came in, staffers quickly remotely logged off every computer in the Montreal office, making it practically impossible for the authorities to retrieve the company records they’d obtained a warrant to collect. The investigators left without any evidence.
Most tech companies don’t expect police to regularly raid their offices, but Uber isn’t most companies. The ride-hailing startup’s reputation for flouting local labor laws and taxi rules has made it a favorite target for law enforcement agencies around the world. That’s where this remote system, called Ripley, comes in. From spring 2015 until late 2016, Uber routinely used Ripley to thwart police raids in foreign countries, say three people with knowledge of the system. Allusions to its nature can be found in a smattering of court filings, but its details, scope, and origin haven’t been previously reported.
The Uber HQ team overseeing Ripley could remotely change passwords and otherwise lock up data on company-owned smartphones, laptops, and desktops as well as shut down the devices. This routine was initially called the unexpected visitor protocol. Employees aware of its existence eventually took to calling it Ripley, after Sigourney Weaver’s flamethrower-wielding hero in the movies. The nickname was inspired by a Ripley line in , after the acid-blooded extraterrestrials easily best a squad of ground troops. “Nuke the entire site from orbit. It’s the only way to be sure.”
Other companies have shut off computers during police raids, then granted officers access after reviewing a warrant. And Uber has reason to be cautious with the sensitive information it holds about customers and their locations around the world. Ripley stands out partly because it was used regularly—at least two dozen times, the people with knowledge of the system say—and partly because some employees involved say they felt the program slowed investigations that were legally sound in the local offices’ jurisdictions. “Obstruction of justice definitions vary widely by country,” says Ryan Calo, a cyberlaw professor at the University of Washington. “What’s clear is that Uber maintained a general pattern of legal arbitrage.”
“Like every company with offices around the world, we have security procedures in place to protect corporate and customer data,” Uber said in a statement. “When it comes to government investigations, it’s our policy to cooperate with all valid searches and requests for data.”
Uber has already drawn criminal inquiries from the U.S. Department of Justice for at least five other alleged schemes. In February, the exposed Uber’s use of a software tool called Greyball, which showed enforcement officers a fake version of its app to protect drivers from getting ticketed. Ripley’s existence gives officials looking into other Uber incidents reason to wonder what they may have missed when their raids were stymied by locked computers or encrypted files. Prosecutors may look at whether Uber obstructed law enforcement in a new light. “It’s a fine line,” says Albert Gidari, director of privacy at Stanford Law School’s Center for Internet & Society. “What is going to determine which side of the line you’re on, between obstruction and properly protecting your business, is going to be things like your history, how the government has interacted with you.”
About a year after the failed Montreal raid, the judge in the Quebec tax authority’s lawsuit against Uber wrote that “Uber wanted to shield evidence of its illegal activities” and that the company’s actions in the raid reflected “all the characteristics of an attempt to obstruct justice.” Uber told the court it never deleted its files. It cooperated with a second search warrant that explicitly covered the files and agreed to collect provincial taxes for each ride.
Uber deployed Ripley routinely as recently as late 2016, including during government raids in Amsterdam, Brussels, Hong Kong, and Paris, say the people with knowledge of the matter. The tool was developed in coordination with Uber’s security and legal departments, the people say. The heads of both departments, Joe Sullivan and Salle Yoo, left the company last year. Neither responded to requests for comment.
Ripley’s roots date to March 2015, when police stormed Uber’s Brussels office, say people with knowledge of the event. The Belgian authorities, which accused Uber of operating without proper licenses, gained access to the company’s payments system and financial documents as well as driver and employee information. A court order forced Uber to shut down its unlicensed service later that year. Following that raid and another in Paris the same week, Yoo, then Uber’s general counsel, directed her staff to install a standard encryption service and log off computers after 60 seconds of inactivity. She also proposed testing an app to counter raids. Workers in Uber’s IT department were soon tasked with creating a system to keep internal records hidden from intruders entering any of its hundreds of foreign offices. They used software from Twilio Inc. to page staffers who would trigger the lockdown.
The security team, which housed many of Uber’s most controversial programs, took over Ripley from the IT department in 2016. In a letter shared with U.S. attorneys and made public in a trade-secrets lawsuit against Uber, Richard Jacobs, a former Uber manager, accused the security group of spying on government officials and rivals. Jacobs’s letter makes an oblique reference to a program for impeding police raids. A 2016 wrongful-dismissal lawsuit by Samuel Spangenberg, another Uber manager, also references its use during the May 2015 tax authority raid in Montreal.
The three people with knowledge of the program say they believe Ripley’s use was justified in some cases because police outside the U.S. didn’t always come with warrants or relied on broad orders to conduct fishing expeditions. But the program was a closely guarded secret. Its existence was unknown even to many workers in the Uber offices being raided. Some were bewildered and distressed when law enforcement ordered them to log on to their computers and they were unable to do so, two of the people say.
Later versions of Ripley gave Uber the ability to selectively provide information to government agencies that searched the company’s foreign offices. At the direction of company lawyers, security engineers could select which information to share with officials who had warrants to access Uber’s systems, the people say.
Another option was contemplated for times when Uber wanted to be less transparent. In 2016 the security team began working on software called uLocker. An early prototype could present a dummy version of a typical login screen to police or other unwanted eyes, the people say. But Uber says no dummy-desktop function was ever implemented or used, and that the current version of uLocker doesn’t include that capability. The project is overseen by John Flynn, Uber’s chief information security officer.
Read more: http://www.bloomberg.com/news/articles/2018-01-11/uber-s-secret-tool-for-keeping-the-cops-in-the-dark