The California tech company helped define the gig economy, where workers were considered self-employed. Uber now has millions of drivers worldwide and takes in billions of pounds in fares. Uber often described the regulated taxi industry it was trying to break into as a “cartel.” But the company has been rocked by scandals. Uber drivers are fighting for their rights. And now a whistleblower has revealed the dark tricks Uber used to break into the lucrative European markets. Mark MacGann was one of Uber’s top executives. He was the company’s chief lobbyist, meeting with senior members of government and heads of state in more than 40 countries. “People were almost falling over themselves to meet with Uber and hear what we had to offer,” MacGann told the Guardian in an exclusive interview (see video below). “It was extremely easy to gain access to the highest echelons of power and decision-making. It was intoxicating.” Now he has become a whistleblower. Thousands of documents were leaked to the Guardian, which shared them with the International Consortium of Investigative Journalists (ICIJ) and media partners around the world, including the BBC. The Uber files are an unprecedented insight into how one of the world’s most notorious tech companies lobbied at the highest level to aid its aggressive expansion into Europe. Uber has raised billions in investment, using capital to attract drivers and passengers and challenge the rules. But Uber needed political support to disrupt the taxi industry. The leak reveals how unannounced meetings, high-level lobbying and behind-the-scenes deals helped Uber get top politicians to support its radical plans. The leaked documents cover the years Uber was trying to break into Europe and show how much Uber was willing to spend to get close to power. In 2016, the lobbying and PR budget was $90m (£75m). They also reveal the shocking detail of how extensively Uber used secret technology to evade justice and showed just how ruthless the company was prepared to be. The company’s tactics were evident in almost every European city it launched in, but nowhere more so than in Paris, Amsterdam and London.
Part 1: Paris
The taxi wars
Paris was the first European city where Uber started. It’s also where co-founders Travis Kalanick and Garrett Camp first came up with the idea for the app when they couldn’t find a taxi on a freezing night.
Paris had a strong network of licensed city taxis with a monopoly picking up passengers at the roadside in the city. The arrival of Uber caused chaos.
Uber funded itself as a technology company that connected passengers with private rental cars – minicabs – that had to be booked in advance. Except its drivers could be summoned within minutes at the push of a button, right from the side of the road. What’s more, Uber’s prices were low – and there was no need to carry cash.
Parisian taxi drivers lost customers and income – and in 2014 they took their protest to the streets. Taxi drivers attacked Uber carrying terrified passengers, smashing their windows and slashing their tyres.
But Uber had a mantra, MacGann says: “It’s better to ask for forgiveness than to ask for permission.” Instead of bowing to the pressure, Uber pushed harder.
In February 2014, a controversial new service called UberPop was launched – called a ‘ride-sharing’ service, it was the cheapest option on the app and like giving someone a lift.
UberPop drivers did not need to be licensed or insured as taxi drivers. This meant that almost anyone with a car could become a taxi driver, and many jumped at the chance.
In a stroke, the taxi drivers had lost their advantage.
Uber immediately ran afoul of the authorities, fined €100,000 for misleadingly advertising the new service as a car pool. New legislation has been under discussion that would impose strict regulations on UberPop and similar ride-sharing services.
But Uber had begun making friends with a young politician in his first ministerial post: Emmanuel Macron.
Reuters
In 2014, Macron was Minister of Economy and Digital Affairs and a rising star. He had come into government with the aim of shaking things up and wanted to tackle unemployment by freeing up traditional labor structures. Uber fit this model perfectly.
The leaked documents reveal that company executives, including MacGann and Uber’s then-CEO Travis Kalanick, attended a series of meetings with Macron. Only one of them has been made public so far.
Uber found the first meeting with Macron on October 1, 2014 to be “spectacular. Like I’ve never seen before.” The company believed it had found a powerful political champion.
The leaked documents also contain dozens of private messages and emails between Uber and its powerful new friend. Their communication was friendly and sometimes casual.
By: Travis Kalanick
To: Emmanuel Macron
December 18, 2014
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