Alphabet - 5%
2018: Growth of revenue by 43% to $11.3 billion; losses decreased by 26.6% to $3.3 billion
2018 Uber finished with revenue in the amount of $11.3 billion, having increased by 43% of rather previous year. Order amount (the total cost of all trips and orders in delivery service of food Uber Eats to a deduction of the commission) was reached by $50 billion that is 45% more in comparison with 2017.
As notes Reuters news agency, revenue of Uber grows more and more slowly because of the remaining subsidizing of trips in the markets with the high competition therefore further raising of revenues of service is questionable.
Net loss of the company at the end of 2018 made $3.3 billion — it is 26.6% less than monetary losses of year prescription. In the specified loss profit on an asset sale of a vrossiya and Southeast Asia is not considered (the Russian business integrated Uber with " Yandex.taxi "). If not to take in consideration legal costs, payments of remunerations for actions, taxes, percent on the credits and also other non-recurring costs, then in 2018 Uber registered a loss in the amount of $1.8 billion against $2.2 billion the previous year.
| ||Last year was for us the most successful, and one more record on number of users of our service was in the fourth quarter set — the chief financial executive of Uber Nelson Chuai said, summing up the results of the 2018th.|| |
He also added that Uber Eats "became the largest business on delivery of food via the Internet outside China", service for the order of cargo transportation of Uber Freight "gains steam in the USA", and electroscooters and electrobicycles in 2018 appeared more than in 10 cities.
Without being the public company, Uber is not obliged to report to regulators on the financial results. Nevertheless, the company publishes the reporting within several quarters, preparing for initial public offering which can take place in the second quarter 2019.
Drivers in Colombia deprive of the rights for 25 years for work in Uber
In August, 2019 it became known that the authorities of Colombia punish drivers deprivation of the rights for 25 years for work in Uber.
Uber works in Colombia since 2013. Though the company has no permission to rendering services in the country, she pays taxes. The authorities cannot eliminate several years this uncertainty concerning similar online services and even act in their protection, despite mass protests of taxi drivers.
| ||All applications have a legality presumption, any application cannot be blocked until is legislative or the judgment — the minister of information technologies and communication of Colombia David Long said.|| |
Taxi drivers of Bogota, Medellin, Cali, Cartagena and Barranquilla repeatedly organized protest actions. They are dissatisfied with what is not legalized by Uber in the country, and the drivers using service transport people in violation of laws and regulations.
On August 12, 2019 the Colombian trade Superintendency of Industry and Commerce (SIC) regulator announced imposing on Uber of a penalty in the amount of $629 thousand for failure to provide information to department and to open access to computers of the company. In October, 2017 the staff of SIC came with check to office Uber in Colombia. Then the company "showed a disrespectful and obstructionist position concerning requirements to open access to different data which were shown by officials", says the regulator to which Reuters refers.
Uber prohibited the employees to disclose to SIC any information. Three workers who directly rejected requirements of the regulator are fined from $1469 up to $7344. Besides, these people "gave evasive and incomplete answers to questions of the positions and functions in the company and also about their knowledge of a corporate structure of Uber Colombia".
Purchase of the developer for pilotless cars
At the end of June, 2019 Uber purchased a startup of Mighty AI which for the new owner to develop software for training of pilotless cars at models of computer vision. The transaction is closed, its conditions, including financial, are not disclosed. Read more here.
IPO: attraction of $8.1 billion, capitalization of $76 billion
On May 10, 2019 Uber made primary public placement of the actions. According to the results of the first day of biddings of quotation of the company IPO low prices fell.
Uber set the cost of placement of the securities at the level of $45. To closing of the New York Stock Exchange at which shares of the company are traded their rate fell by 7.6% and made $41.57. Market capitalization of the company made $69.71 billion against $76 billion to opening of marketplace.
Uber and investment banks initially estimated the company at $120 billion, but afterwards assessment was repeatedly reviewed towards lowering.
| ||We knew that we have ahead a difficult day — told in an interview of The Wall Street Journal the CEO of Uber Dara Hosrovshakhi. — The company experienced a set of not stability in the history. We always passed through them.|| |
Within the IPO the Uber company sold 180 million shares at the price of $45 apiece therefore service of the order of the taxi attracted in total $8.1 billion. This listing was included into ten the largest in the American stock market and became record from the moment of entry into the Alibaba exchange.
A day before an exit of the company to the IPO drivers of Uber went on strike and demonstrations in 14 cities of the world. Employees complained that in the first year of work the company takes away to itself 75% of trip cost, then 50%. Besides, some drivers by force spend the night in machines on city parking not to waste time for daily trips to work from the suburb and back.
The driver of Uber killed the fighter of UFC after the quarrel
In April, 2019 became about death of the Brazilian fighter of the mixed style (MMA) of Rodrigo De Lima after the quarrel with the taxi driver of Uber. An incident occurred in the city of Belen (Brazil). Read more here.
The girl is killed after confused the Uber taxi with other car
Attraction of $1 billion for division of pilotless cars
On April 19, 2019 Uber announced attraction of $1 billion investments for the division which is engaged in development of technologies for unmanned vehicles. According to the results of the financial transaction in which took part technology holding Softbank, Toyota carmaker and producer of automobile Denso component parts, Uber Advanced Technologies company it was estimated at $7.25 billion Read more here.
Purchase of the Arab service of the order of the Careem Networks taxi for $3.1 billion
On March 26, 2019 Uber Technologies announced acquisition of Careem Networks for $3.1 billion. Thanks to this transaction the buyer will be able to become the dominating player in the Middle Eastern market of online services of the order of the taxi. Read more here.
Uber Russia appeared in 104 new cities of Russia
The Uber Russia service began to work in 104 cities of Russia. In honor of mass start the discount of 10% for trips will work in all new cities until the end of February. It is possible to download Uber Russia in App Store and Google Play.
Everything if to consider towns with the population about 50 thousand people, Uber Russia is available more than in 250 cities of Russia — from Kaliningrad in the West to Petropavlovsk-Kamchatsky in the east. Besides, Uber Russia it is possible to use in Azerbaijan, Belarus and Kazakhstan, for this purpose it is not necessary to install other applications.
For the order of the car it is necessary to install the application on phone, Uber Russia will automatically determine location of the user and will send the order to that driver who can arrive most quicker.
It is possible to pay a trip with cash or the bank card in the application — the amount will be written off automatically at the end of the way. Users see in advance the trip cost when specify a final point of a route. The price will not increase even if on the way there will be traffic jams or the driver should deviate a route.
Uber Russia is an upgraded version of the application of Uber. It was developed especially for Russia and added new features. For example, now users can write the comment on the order, add the intermediate addresses on a trip, pay the order using the Apple Pay and Google Pay and to leave a tip to the driver.
Payment of $148 million for attempts to hide date leak
At the end of September, 2018 it became known that the Uber company agreed to pay record $148 million in the class action which initiators accused the American service of the order of the taxi of attempts to hide date leak of the clients.
Uber will transfer the specified amount for benefit of the budget of 50 American states and the federal District of Columbia.
| ||This record amount should show clearly: we will not undergo any neglect the law and protection of sensitive information of employees and clients — said the Attorney-General of the State of New York Barbara Underwood.|| |
She called the solution of Uber to hide large-scale date leak "perfidious treachery in relation to the public".
| ||The company not only did not save data of users in a secret, but also did not announce the authorities leak. It became according to corporate policy at that time — she noted.|| |
Except payment of a fine, the Uber company undertook to notify users on possible leak of their data and made promises to take precautionary measures for protection of the user information which Uber stores at the third parties.
Also the company will employ the independent auditor on information security who will regularly check the level of security tt of IT systems and data. At last, Uber will have to create policy on security of all data and to consider all potential risks.
As a result of the hacker attack which took place in October, 2016 malefactors stole names, the e-mail addresses and phone numbers about 57 million users and drivers of Uber worldwide. An incident became known only a year later, and in connection with concealing of the incident against the company numerous claims most of which afterwards were united in one group were submitted. However some claims initiated by drivers, clients and the authorities of Los Angeles and Chicago by the end of September, 2018 still are under consideration in courts.
Toyota invests $500 million in Uber for development of pilotless cars
According to the The Wall Street Journal edition with reference to the informed sources, these monetary injections from Toyota will increase the market value of Uber from $62 billion to $72 billion according to interlocutors, in 2017 Uber spent $750 million for development of pilotless machines before cut off expenses in the 2018th when the company stopped testing cars in Arizona, Pittsburgh, Toronto and San Francisco. Besides, at the end of July the Uber company closed department of development of pilotless trucks, having concentrated on cars.
Toyota is going to make the Sienna minivans with an installed software from Uber to bring them into operation in the taxi by 2021. So far Toyota lags behind in this direction General Motors and also Alphabet corporation which with the Waymo project intends to start operation of autonomous taxi until the end of 2018.
Toyotas and Uber are going to resolve an issue of mass production of unmanned vehicles for joint vehicle fleets, including for services of transportation of passengers.
The director of Uber of development of strategic initiatives Jeff Miller told that partnership "really illustrates as we are going to use pilotless technologies in the long term".
| ||Our purpose is in involving in Uber network the safest in the world self-governed cars, and this agreement is the next major step on the way to making it a reality, – Associated Press cites words of the CEO of Uber Dara Hosrovshakhi|| |
Payment for $34 thousand to employees for sexual harassments
On August 21, 2018 the Uber Technologies company agreed to pay to victims of sexual harassments to the employees on average in $33,928.57. For this purpose the service of the order of the taxi created special fund in the amount of $1.9 million.
In total the class action to the company with charges of sexual harassments was submitted by 56 former and operating employees. Scandals over sexual harassments in Uber began in February, 2017 when the engineer of the company Susan Fowler published in the blog the story about permanent sexual harassments in the company.
Besides, Uber will create one more fund — from it the company will pay compensations to women and representatives of other minorities who accuse service of discrimination according to the claim of October, 2017. According to internal investigation, complaints of employees to racial discrimination systematically were rejected by company management. On August 20, 2018 the court of Auckland, the State of California, obliged the company to pay to three engineers who submitted a claim on $11 thousand and also to create fund in the amount of not less than $10 million for the victims of discrimination on the amount of compensation.
Payments for the claim for harassments were calculated depending on gravity and duration of expected illegal behavior, presence of the witnesses and documents confirming complaints of claimants, psychological effects for the victim and from other circumstances. Only two employees of the company which it was mentioned in the claim refused to put forward complaints; denials did not follow.
The following judicial listening in claims for sexual harassments will take place in Uber on November 6, 2018. Representatives of Uber note that the victims agreed with court's decision and considered the amount of compensation fair and reasonable.
Warren Buffett was going to invest $3 billion in Uber
At the end of May, 2018 it became known of failure attempt of Warren Buffett to invest about $3 billion in Uber, the Businessman wanted to conclude the bargain, similar to that when he saved Goldman Sachs bank from crash during financial crisis. Read more here.
The first deadly road accident with participation of the robomobile
In March, 2018 there was a deadly road accident first in the history with participation of the unmanned vehicle. According to police, electronics of the vehicle is not guilty of the event.
According to The New York Times, an incident occurred at night on Sunday, March 18, 2018, in the city the Speed (the State of Arizona, the USA). The SUV with Volvo XC90 auto pilot tested by Uber hit 49-year-old Elaine Herzberg who, having dismounted from the bicycle, crossed the road out of the crosswalk. Driving the vehicle there was a driver, however the machine moved in the mode of independent management. The victim died in hospital.
At a press conference representatives of police said what signs of emergency brake application was not revealed. Neither cameras, nor the person sitting in a cabin of the tested robomobile noticed the cyclist until collision. Machine speed at the time of accident was 38 miles (61 km) per hour at permitted here in 35 miles per hour.
| ||It is clear, what would be very difficult to avoid this collision in any mode — in autonomous or with the driver — how she (cyclist) jumped out of a shadow directly on the road. Previously I assume that I Uber am hardly guilty of this incident — the police chief at Speed Silvia Moir (Sylvia Moir) told journalists.|| |
After road accident with a lethal outcome of Uber quickly suspended testing of the cars at Speed and also in Pittsburgh, San Francisco and Toronto. The company brought condolences in connection with death of the woman.
It is not the first accident during testing of unmanned vehicles. In 2017 in the same city Speed the machine belonging to Uber with an auto pilot collided with the Volvo SUV which driver did not give way. Then, fortunately, it was without the victims.
Return of Uber to Barcelona
In March, 2018 Uber returned to Barcelona three years later after introduction of the ban. According to Agence France Presse with reference to the representative of the company, in the city is started UberX service within which only professional drivers can render services.
At the end of 2014 the UberPop application was prohibited in Barcelona after numerous complaints of taxi drivers. The court made the decision that use of services of drivers without license which were available within UberPop contradicts the current legislation and puts the licensed taxi drivers in conditions of the unequal competition. At the end of 2017 the European Court of Justice in Luxembourg confirmed that in Europe work of Uber service should be regulated as activity of the company of the taxi, but not as the application as services are provided by nonprofessional drivers.
It is impossible to appeal against this court's decision, it extends to all 28 EU Member States and Uber threatens with more tough regulation of business, increase in taxes and changes in requirements to drivers.
On March 13, 2018 again earned Uber in Barcelona, however only the drivers who got the formal permission for transportation of passengers can work with service. Such taxi drivers in Uber there are about 120 by the time of return of service. Instead of UberPop in the capital of Catalonia the UberX application is available.
In Spain the industry of the taxi is very developed. In the country there are about 70 thousand licensed drivers and 7 thousand cars which are officially approved for taxi services in spite of the fact that the cost of the license of the taxi driver costs from 120 thousand to 170 thousand euros. That to receive it, motorists often should take the credit.
Drivers of Uder have other license type — the car with the driver who it is possible to hire. Such license costs considerably cheaper — from 30 thousand to 40 thousand euros. From here and complaints of taxi drivers to Uber.
Uber creates, but does not liquidate a stopper
According to the results of a research published by the Sfgate edition on February 26, 2018, services of the order of the taxi, such as Uber and Lyft, increase quantity of stoppers in the city. People even more often use taxi services instead of public transport or walk on foot.
One of researches conducted in Boston at the end of 2017 showed that nearly six of ten respondents would prefer to use services of public transport, would go by bicycle or walked on foot if they had no application for trips to the taxi. Also it turned out that many passengers use the online taxi not to reach the subway or a stop of the bus, and instead of them. Thus, taxi services select passengers at public transport.
These researches goes to a section with promises of the founder of Uber Travis Kalanick, made in 2015, that in Boston there will be no traffic jams in the next five years.
Other research conducted in December, 2017 found out that increase in number of the taxi and services of joint trips complicates the movement in the business center of Manhattan. Sociologists recommended to police to prevent the further growth of "the number of the taxi expecting passengers".
Results of the research executed in San Francisco in June, 2017 showed that on weekday drivers of service of replanting of passengers make over 170 thousand trips, in 12 times more of normal taxi drivers, and these trips generally fall on the parts of the city which are most loaded in the transport relation.
These outputs are confirmed by other report published in October, 2017 during which over 4 thousand people in Boston, Chicago, Los Angeles, New York and other large cities were polled. It turned out that 50-60% of trips to the taxi would not take place if such opportunity did not exist.
The research executed in Boston showed that the main reason for which people prefer a joint trip to the taxi it is speed. Even those who have a travel card will prefer the online taxi, despite higher cost.
According to the report of Transport administration of the State of Massachusetts for October, 2017, two thirds of passengers use services of the online taxi. And the research conducted in February, 2018 in San Francisco showed that the number of passengers of public transport is sharply reduced during week-end, partially because of offers of services of replanting of passengers. The purpose of services of the Lyft and Uber online taxi – to lay off number of owners of cars and to increase the number of passengers of the taxi separately or in combination with public transport. It is also promoted by new service of joint and passing trips Uber Express Pool which represents the competition to mass passenger traffic.
The people going in one direction can use this service. They need to pass a little to the place to which the machine will approach, and then it will take them to a destination point – as the bus or the subway. Service was for the first time tested in November, 2017 in San Francisco and Boston, and it turned out that it is popular round the clock. Then it was developed in other cities.
Yandex and Uber closed the transaction on consolidation of businesses of the online order of trips
Yandex Companies and Uber announced on February 7, 2018 closing of the transaction on consolidation of businesses of the online order of trips in Russia and neighboring countries as a part of start-up company. At the time of closing of the transaction of the party invested in this company $225 million and $100 million respectively. Taking into account these investments money on balance of the company is $400 million. Thus, it is estimated more than at $3.8 billion. About 59.3% of the company belong to Yandex, 36.9% — Uber, and 3.8% — to the employees. Read more here.
Use of software blocking computers at a search
In January, 2018 it became known that Uber several times used at the offices the program worldwide under the unofficial name Ripley which in case of need can change far off passwords and block data on the smartphones belonging to the company, notebooks and desktop computers and also to switch-off devices.
According to the Bloomberg agency, in May, 2015 about 10 tax investigators rushed into office Uber in Montreal. The authorities believed that Uber violates the tax law and received the warrant for collecting of proofs. Witnesses of an event tell that managers on site already knew what to do.
As well as at hundreds of other offices Uber abroad, the Canadian employees were trained to send the message by number which notifies specially prepared personnel in the company headquarters in San Francisco. When there passed the call, managers quickly far off quitted the system on each computer at the Montreal office, having made impracticable for the authorities data acquisition of the company on which collecting the order was received. Investigators left without any proofs.
According to three witnesses familiar with a system, since spring of 2015 until the end of 2016 Uber regularly used the Ripley program — more than 25 times — for failure of police raids in foreign countries.
The command controlling the program could change far off passwords and block data on different devices and also disconnect them. Initially this procedure was called "the protocol of the unexpected visitor". The involved employees consider that the program really slowed down investigations which were good in law.
| ||Determination of an obstacle to justice widely varies over the countries — professor of the cyberlegislation of the University of Washington Ryan Calo says. — But it is clear that Uber adhered to the general scheme of legal arbitration.|| |
Record losses — $4.5 billion
In 2017 the Uber Technologies company developing the service of the order of the same name of the taxi recorded the most severe losses in the history — $4.5 billion. In comparison with 2016 when monetary losses were measured by $2.8 billion, losses increased by 61%.
At the same time also revenue of Uber grows: if in the 2016th it was at the level of $6.5 billion, then a year later sales increased to $7.5 billion.
According to Bloomberg, by the end of 2017 at the disposal of the American company there were $6 billion free money that is 13% less, than the previous year.
Does not open more detailed financial and operational indicators of Uber. The company is not obliged to spread them in a public access as it is private. However more and more rumors about entry of Uber into the exchange go.
2017 was issued difficult for Uber, considering numerous legal claims and a series of the scandals connected with sexual harassments among employees and shadowing users and representatives of the authorities.
In February, 2018 Uber settled judicial proceedings with Waymo company ("subsidiary" of Alphabet) and agreed to pay it $245 million in the form of the actions. This amount was considered in accounting records for 2017.
If not to take in consideration legal costs, payments of remunerations for actions, taxes, percent on the credits and also other non-recurring costs, then in 2017 Uber received the loss equal to $2.2 billion.
Bloomberg notes that it is hard to compare indicators of Uber as in 2016 the company did not report complete financial data, and afterwards also changed accounting principles of income. It is known that the company sustained in China losses in several billion dollars before sale of local business.
Information on the hacker who received the redemption for removal of data about 57 million users
On December 7, 2017 it became known as well as to whom Uber Technologies paid the redemption for removal of data about 57 million clients of service.
According to Reuters with reference to three the informed informants, in November, 2016 Uber transferred $100 thousand to the 20-year-old hacker from Florida (USA) for that he did not disclose personal information of users. Payment was made via the bug bounty system which is usually used for small encouragement of the users pointing to vulnerabilities of service.
The news agency did not manage to learn a name of the hacker to which Uber paid the redemption. It is also unknown who in the company made the final decision to make this payment and to save an incident about date leak in secret. According to Reuters, the former CEO of Uber Travis Kalanick knew about stealing of data and transfer of money to malefactors. Kalanick was dismissed in June, 2017.
The program of encouragement for the found vulnerabilities in Uber is placed on the HackerOne platform, but the administration of the last does not influence the amount of payments at all.
| ||In all cases when remunerations of bug bounty pass through HackerOne, we obtain the identification information about the receiver in the IRS W-9 form or W-8BEN before money transfer — the head of HackerOne Marten Mickos reported, having added that rules of the American tax law are like that.|| |
One of the former heads of HackerOne in a conversation with Reuters called payment in $100 thousand via the bug bounty system "record for all the time". As a rule, awards make from $5 thousand to $10 thousand.
Interlocutors of the edition say that Uber made a payment to recognize the identity of the hacker and then to sign the agreement on nondisclosure of information, having secured itself against further blackmail. Carried out the criminalistic analysis of the computer of the hacker to the companies to be convinced at a distance data.
One of interlocutors described this cyberswindler as the person living in the small house with the mother and trying to earn money for payment of accounts. Uber did not want to try to obtain prosecution of this person, having convinced that he does not pose a further threat.
The fact of creation of department for collecting of secrets of competitors was opened
In November, 2017 the lawsuit between Uber and Waymo companies (enters into Google) because of pilotless automobile technologies took new turn after the judge hearing case received the certificates hidden by Uber of the fact that in the company the department intended for collection of information of competitors was created. Also it became known that Uber used systems which ciphered and deleted the corresponding correspondences that they did not get to court.
Provided to court the letter written by the lawyer Richard Jacobs who was the member of the prospecting Uber group. The lawyer of Waymo Charles Verhoeven read in court of excerpt from the letter:
| ||Jacobs knows about use of Uber of the MA command [Marketplace Analytics] for theft of a trade secret, at least at Waymo in the USA... The department of MA was created directly for the purpose of receiving a trade secret, code base and competitive intelligence.|| |
Jacobs certified in court that the department of MA used separate servers and the systems of messages, and messages (on the platform under the name Wickr) almost instantly were removed for the purpose of destruction of any traces capable to do much harm the companies in the future.
The legal claim was submitted upon hiring by Uber company of the former engineer of Waymo Anthony Levandowski. Waymo states that their former engineer Levandowski stole 14 thousand technical files from servers of the company, and then at the beginning of 2016 opened home transport company under the name Otto which was engaged in development of pilotless trucks. In August of the same the 2016th Uber purchased Otto for $680 million and delivered Levandowski at the head of the researches of robotic cars.
The Waymo company states that Uber used the files stolen by Lewandowski to advance the stagnant research and development programme, desperately wishing to create own version of technology which could improve a business model of the company.
Prohibition in Israel
On November 28, 2017 prohibited Uber work in Israel due to the lack of the license for passenger traffic. This prohibition continued series of problems of the company which faced mass date leak and restriction of activity in other countries.
According to the resolution of district court of Tel Aviv, the Uber taxi should stop going in Israel on November 28, 2017. The UberNIGHT and UberDAY services allowing private drivers to carry passengers in night and day time of day respectively for compensation for expenses on gasoline and other costs for a trip are also closed in the country.
The Ministry of Transport of Israel, the local Union of taxi drivers (Taxi Driver Union) and the competing Gett company which announced illegal business activity of the American service filed a lawsuit against Uber. In particular, claimants pointed to absence at Uber of the corresponding license for passenger traffic and an obligatory insurance.
All taxi drivers in Israel should have licenses for transportation of passengers, however Uber decided to bypass this requirement, having started online services for some kind of search of automobile fellow travelers. Drivers of Uber instead of payment formally accept the amount equal to a covering of maintenance costs of the car from clients. The company claims that drivers do not get profit on such activity.
Uber announced observance of the instruction of the Israeli court and also hoped for what will manage to be reached in the nearest future with the authorities of the agreement that the company resumed work in the country. By the end of November, 2017 tens of thousands of Israelis used every day services of Uber.
| ||Uber still aims to work with the Israeli government, studying as technologies can improve the cities, having made them safe and having allocated them with alternative means of transport — the Fortune edition provides the statement of the company.|| |
Theft of these 57 million clients and dismissal of the cybersecurity director
In November, 2017 it became known of stealing of these 57 million clients of Uber. The company paid hackers the redemption that those did not spread information in a public access. As a result of an incident two top managers of Uber were dismissed, including the Chief information security officer.
According to the Bloomberg agency, theft of personal data it was made in October, 2016, but more than a year of Uber hid the incident. In hands of malefactors there were e-mail addresses and mobile phone numbers of 50 million passengers worldwide and also data about 7 million taxi drivers, including numbers of car driver licenses.
The company assures that data on credit cards, routes of trips and some other information did not get to hackers.
Cyber attack was performed as follows. At first two malefactors got access to web service for a hosting of IT projects and their joint development GitHub which is used by programmers of Uber. Then thanks to the obtained credentials of staff of the company hackers got an information access, Amazon Web Services (AWS) which is stored in a cloud which processed computing tasks of Uber. There hackers detected archive with customer information and drivers.
Instead of announcing cracking to regulators and drivers, the company paid hackers $ thousand dollars 100 to delete data and to save everything in secret. According to the management of Uber, hackers did not use the acquired information.
After messages about data theft two high-ranking employees of Uber responsible for acceptance of response measures in connection with an incident — the director of information security Joe Sullivan and his deputy Craig Clark are dismissed.
The Attorney-General of New York Eric Schneiderman opened investigation in connection with the incident. Also made to Uber the claim for negligent attitude to client data. It is expected that this complaint finally will become collective, and the company can be fined the impressive amount.
Regulators in Australia and on Philippines announced to Reuters consideration of an incident which as notes the edition, can nullify all attempts of Uber to resolve all conflict situations with the authorities of the Asian countries. Earlier it was reported that Uber conducted negotiations on attraction of several billion dollars of investments from consortium led by the Japanese telecommunication giant SoftBank.
| ||Nothing from this had to occur, and I will not look for justification. We change rules of business — the CEO of Uber Dara Khosrowshahi says. — When this incident occurred, we accepted immediate steps on data security provision and the termination of further unauthorized access of individuals … We identified hackers and received from them assurances that the loaded data were destroyed.|| |
According to him, all information concerning an incident, Uber sent to the relevant governmental bodies. Besides, the company charged to contact drivers whose data were stolen.
According to sources of Reuters, the committee in Board of Directors of Uber according to the results of own investigation of the incident found out that the former CEO of Uber Travis Kalanick did not participate in cracking concealment. Kalanick resigned in June, 2017 after a series of the scandals including connected with sexual harassments.
The The New York Times newspaper, referring to the informants, writes that in the amount of $100 thousand and information hiding Travis Kalanik gave permission to payment to hackers of the redemption personally. But Bloomberg in Uber was told that Kalanik learned about the incident in a month after cracking. The former head of the company refused comments.
Hackers will knows of payment of ransom very seldom, however, as told Reuters in the American FBI and several private cybersecurity firms, more and more companies are preferred to be paid cybercriminals for removal of kidnapped persons of data.
Purchase of 24 thousand Volvo unmanned vehicles
On November 20, 2017 Uber announced up to 24 thousand acquisition unmanned vehicles Volvo, thereby having designated the transition from a format only of mobile application for a taxi call in the operator of own vehicle fleet. In more detail here.
Plans joint with Yandex IPO
In November, 2017 it became known that by "Yandex" and Uber intend to carry out a primary public offer of stocks (IPO) of the joint business on the organization of trips. The IPO should take place already in the first half of 2019, reported the Bloomberg edition. As the chief financial officer of "Yandex" Greg Abovsky (Greg Abovsky) on the sidelines of a conference of Morgan Stanley of TMT in Barcelona reported, shares will be traded most likely in SShA[.
Also he reported that now "Yandex" works on transformation of " Yandex.taxi " of applications and Russian Uber in a single platform, but with two different user clients. According to Abovsky, in II and III quarters 2017 growth of number of users of both applications which were earlier competing was calculated by "three-digit numbers". His words are confirmed by official statistics of "Yandex" according to which growth of a passenger traffic of " Yandex.taxi " was 360% in the III quarter.
Under the terms of merge of "Yandex" purchased also Russian division of delivery service of food UberEats, and it intends to invest intensively in this direction in 2018, the financial director reported.
Overestimate of cost of trips by means of a GPS-application
In Nigeria the drivers cooperating with service of the online order of the Uber taxi use Lockito Android-application to overestimate a fare. On November 13, 2017 the Quartz Africa portal reported about it.
The Lockito application which is initially created for verification of navigation programs allows to imitate work of GPS, transferring to mobile applications of coordinate, as from this GPS. At the same time both the movement on route, and stay in one point is reproduced and if any application tries to learn location, instead of real data counterfeit are issued to it.
Having had a talk with several drivers from Lagos, the largest city of Nigeria, journalists learned how using the application local taxi drivers take double and even threefold rate for a trip.
Starting Lockito before the passenger gets into the car, drivers enter coordinates from the place of landing to a destination point and create a fake route for the application of Uber. When the real trip begins, its route is also traced on GPS and rated. At the end of the way the cost of both trips simulated and this, is summed up, and the passenger who is not suspecting anything pays the much bigger amount, than it is necessary.
One of interlocutors was recognized that he took for a trip which in fact cost near the 3000th naira (monetary unit of Nigeria, about $8) from the client 10 thousand naira. And it is not a limit: the taxi driver heard that some of his colleagues overestimated a rate more than five times.
Nigerian drivers of Uber claim that service itself forced them on fraud. In May, 2017 Uber was lowered by a basic rate for a trip in the country to 40% then taxi drivers also began to use Lockito in large quantities.
Also drivers say that Uber is aware of illegal practice, but does not fight against it in any way. Uber categorically rejected charges and emphasized that against similar methods and always vigilantly monitor prevention of fraud from drivers.
Investments from SoftBank
The Japanese telecommunication conglomerate SoftBank invests billions of dollars in service of the online order of the Uber taxi within the agreement signed by the companies. Uber announced the reached agreement on November 12, 2017, but did not disclose details of the transaction.
According to the informed sources on which the agency The Associated Press, SoftBank refers will acquire shares of Uber for the amount of $1 billion and also will suggest to redeem shares of Uber from other investors and the staff of the company to bring the share in an online service to 14%.
By November 13, 2017 the cost of Uber is estimated approximately at $68.5 billion. Redemption of stocks will be is made at the rate of the smaller price therefore it is unknown about what total sum of investments there is a speech, the interlocutor of the agency who gave an interview on the condition of anonymity said.
The Reuters agency also with reference to insiders reports that the group of investors led by SoftBank included Dragoneer Investment Group and some more the companies which jointly are going to enclose in Uber from $1 to 1.25 billion, and further want to purchase up to 17% of its securities at other shareholders of an online service. As a result transaction amount can reach $10 billion, two people who asked not to reveal the names said to the edition.
In Uber concerning the agreement with consortium led by SoftBank and Dragoneer investment group said that this transaction — a vote of confidence to the capacity of the company and that it "will promote increase in investments into technologies of Uber, further expansion of service within the country and abroad and also to strengthening of a corporate management system".
Besides, the signed agreement opened Uber a way to the IPO. Being one of the most expensive technology companies of the world, Uber is going to carry out initial public offering at the exchange until the end of 2019.
Will lock works in London
In September, 2017 it became known of prohibition of work of Uber in London. The company is ready to make concessions in negotiations from the local transport system.
The department of Transport for London (TfL) managing public transport in the British capital did not prolong the license of Uber London company expiring on September 30, 2017 for activity in London because of mismatch to safety rules. The company has 21 days on the appeal the solution, and Uber is going to use it, having taken legal actions.
The transport regulator explains the solution with the fact that "approach and behavior of Uber show the shortage of the corporate liability" and also that the service uses program system of Greyball which collects personal data of clients and analyzes them. However, in the spring of 2017 Uber announced a total ban of Greyball.
The mayor of London Sadiq Khan supported the solution TfL, having emphasized that "all companies in London should play by rules and adhere to high standards", especially in safety of clients.
It is said in the statement of Uber that the decision made by transport management of London shows to the world how British capital is closed for the innovative companies.
The general manager office Uber in London Tom Elvidge declared to the The Sunday Times edition the appeal to the London transport department and to the mayor Sadiq Khan:
| ||We want to know that we can make, sit down and work together that to settle it.|| |
Prohibition of Uber in London became true unexpectedness of the industry and residents. In the British capital 3.5 million passengers and about 40 thousand drivers use this service of the order of the taxi.
In three days more than 727 thousand people signed the petition with the requirement to save Uber in London.
Uber starts in Voronezh the center of support of Russian-speaking clients worldwide
The Uber Technologies company leased 1.35 thousand square meters in business center "Galeon" in Voronezh. The company is going to increase leased area to 5 thousand square meters and to organize there the center of support of Russian-speaking clients of Uber worldwide, the Kommersant newspaper with reference to sources writes  
Uber told the edition that in Voronezh the expert center of the company which specializes in support of drivers and passengers already works. Now in it 130 people work. The similar centers are open in Cairo, Krakow, the American Phoenix, Limerick (Ireland) and also in Manila and the countries of Latin America.
The CBRE company called Voronezh a good choice for opening of a back office: the lease rate in Galleon is 950 rubles for square meter a month. Thus, 1.35 thousand square meters will cost 15.4 million rubles a year, and 5 thousand square meters — in 57 million rubles.
Control of the authorities after mass date leak
In August, 2017 the Uber company agreed to supervision from U.S. authorities within 20 years and implementation of the new program for protection of client data. These are the conditions set by the Federal Trade Commission (FTC) on which Uber will be able to avoid much more severe sanctions.
FTK accused service of false declarations concerning safety of personal data of partners of service and information protection of infrastructure of the company in general.
The conflict between supervisory authority and Uber in the USA began with massive date leak in 2014 when from the database of the company more than 100 thousand names of the drivers cooperating with Uber, and numbers of their driver's licenses "flowed away". The database was located in a cloud service of Amazon Web Services (AWS), but the owner of base bears responsibility for data security.
According to Federal trade commission, Uber did not take even the most basic and not expensive measures - such as introduction of multi-factor authorization - for prevention of leak.
Besides, as officials claim, Uber very quickly refused use of an automated system of monitoring of access for employees of the company to user data.
| ||Uber brought clients twice: providing incorrect data on to what degree access for employees of firm to personal data of clients and drivers was controlled, and having reported false data on what steps are taken for protection of these data, said in the statement of the acting chairman of FTK Maureen Ohlhausen. — This case shows that even if you - the fast-growing company, about clients it is impossible to forget: the promises about personal data protection need to be observed.|| |
Now Uber it is regularly necessary to be exposed within 20 years to third-party audit regarding observance of standards for personal data protection of users – both drivers, and passengers of service. Also Uber should deploy at itself the new program for ensuring personal data protection. However, in the company note that Uber already actively works in this direction.
| ||The complaint of Federal trade commission belongs to 2014. Since then we significantly increased the security, improved personal data protection, and we continue to invest considerable means in these areas — reported in Uber. The company "does not admit a charge of FTK, but also does not disprove".|| |
In 2016 by Uber it was fined 20 thousand dollars for use by company executives of means of tracking the current movements of passengers. Case developed into investigation by prosecutor's office of the State of New York.
| ||By and large, Uber was largely substituted by the statements for what be at them all right with information security — Georgy Lagoda, the CEO of SEC Consult Services company considers. — From errors nobody is insured, date leaks happen even where protection, apparently, is organized up to standard. But in this case it is first of all about a form of unfair advertizing, and only then about real shortcomings of protection three years ago. By the way, the story with leak from LinkedIn which happened five years ago shows that similar incidents can have very long-playing effects. Uber it can concern too.|| |
Uber integrates with " Yandex.taxi"
On July 13 "Yandex" and Uber announced that they agreed about consolidation of the businesses by the online order of trips in Russia, Belarus, Kazakhstan, Georgia, Azerbaijan and Armenia. The united company will also include UberEATS service in the specified countries.
Under the terms of the agreement, invest $225 million and $100 million in the created Uber and "Yandex" company respectively, estimating it at $3.725 billion. Taking into account these investments and possible adjustments at the time of closing of the transaction of 59.3% of the company "Yandex" will possess, 36.6% — Uber, and 4.1% — to the employees. The CEO of " Yandex.taxi " Tigran Hudaverdyan will head the company.
As noted, the united company will use technologies and knowledge of "Yandex" in the field of cartographic and navigation services and search systems and global experience of Uber in the field of online services for the order of transportations.
After closing of the transaction both applications to the order of trips — both " Yandex.taxi ", and Uber — will be still available to users. At the same time, taxi pools and drivers will pass to a single technology platform — it will allow to increase the number of orders of machines, available to accomplishment, to reduce time of their giving, to lower a single run, to increase availability of service in general, consider in "Yandex".
At the same time in the company emphasized that "any radical changes of rates" will not be neither now, nor then. The cost of a trip will form taking into account a situation on roads and demand. Uber said too that are not going to change rates.
"Partnership with Uber will help to expand quicker geography of business and to improve quality of service — Tigran Hudaverdyan, the CEO of " Yandex.taxi " noted. — Our companies totally provide more than 35 million trips a month, and their quantity grew by 400% year-on-year. From the moment of foundation of " Yandex.taxi " in 2011 to service it was connected by several hundred thousands of drivers, we created service of orders of the taxi in Russia and in five countries. We are glad to continue work together with Uber".
"This consolidation is profitable not only to both companies, but the main thing — to users, drivers and the cities — Pierre-Dimitri Gore-Coty, the head of Uber is convinced of the region Europe, the Middle East and Africa. — This transaction helps us with further formation of steady international business".
The transaction was approved by Boards of Directors of Uber and "Yandex", but still is subject to approval of regulating authorities. Its closing is expected in the fourth quarter 2017.
Uber will pay $20 million for "deception" of drivers
The Uber company which is engaged in taxi transportations will pay $20 million in the claim of the Federal trade commission of the USA (FTC) which accused businessmen of deception of drivers. The relevant agreement between the claimant and the defendant was signed in district court of the Northern District of State of California.
According to Bloomberg, according to regulators, the company reported "false and unreasonable data" on that how many drivers can earn, participating in service. It is both about income amounts, and about the cost of leasing of cars.
Gives an advertisement of 2015 on set of taxi drivers in New York and San Francisco as an example of FTC. The website of Uber promised to the New York taxi drivers annual average income in the amount of $90 thousand, and to drivers in San Francisco — $74 thousand. Actually annual average earnings of drivers of the taxi in these cities from 2013 to 2014 made, respectively, less than $29 thousand and less than $21 thousand.
2016: Investments of Sberbank
It is known that the fund of Sberbank took part in an investment round of G within which it attracted with Uber about $12.5 billion and received business valuation in $66 billion Read more here.
- ↑ Uber posts of $50 billion in annual bookings as profit remains elusive ahead of IPO
- ↑ Colombia fines Uber more than of $629.000 for obstructing regulatory visit
- ↑ Uber Is One of the Worst Performing IPOs Ever
- ↑ $ Uber pays 148m over data breach cover-up
- ↑ Toyota and Uber Extend Collaboration to Automated Vehicle Technologies
- ↑ Uber Settlement to Pay $34.000-a-Head for Harassment Claims
- ↑ Exclusive: Tempe police chief says early probe shows no fault by Uber
- ↑ Banished Uber back in Barcelona with licensed service
- ↑ com/business/technology/article/uber-lyft-traffic-congestion-study-boston-sf-12707264.php/ Studies are increasingly clear: Uber, Lyft congest cities
- ↑ Secret Tool for Keeping the Cops in the Dark
- ↑ Uber Quarterly Sales Rose of 61% to of $2 Billion Amid Heavy Loss
- ↑ Exclusive: Uber paid 20-year-old Florida man to keep data breach secret - sources
- ↑ HIDDEN EVIDENCE COULD CRACK OPEN THE UBER-WAYMO SELF-DRIVING CAR FIGHT
- ↑ Uber's car-sharing service banned in Israel in latest legal setback for taxi firm
- ↑ Uber Paid Hackers to Delete Stolen Data on 57 Million People
- ↑ http://www.cnews.ru/news/top/2017-11-17_sovmestnoe_taksi_yandeksa_i_uber_sobralos_provesti The joint taxi of "Yandex" and Uber will carry out the IPO to the USA]
- ↑ Uber drivers in Lagos are using a fake GPS app to inflate rider fares
- ↑ Uber seals multibillion-dollar investment from Softbank
- ↑ Uber board strikes agreement to pave way for SoftBank investment
- ↑ Uber faces double battle against London ban and scrutiny of hiring practices
- ↑ [https://www.kommersant.ru/doc/3396372 of Uber
- ↑ parked in ]the Galeon Voronezhebusiness-center
- ↑ — a part of the business Voronezh City complex which total area exceeds 300 thousand square meters. The developer of the project — the Megion group of Boris Nesterov. The company confirmed cooperation with Uber.
- ↑ Uber agrees to 20 years of privacy audits after FTC says it 'failed consumers'
- ↑ Uber integrates with " Yandex.taxi " in the former Soviet Union. Wow!
- ↑ of Uber will pay $20 million for "deception" of drivers
Stock price dynamics
|Ticker company on the exchange:||NYSE:UBER|
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