Uber hits back at regulators with massive lobbying effort
We’ve all had bad weeks before where nothing ever seems to go right for us. But few of us have had it quite as tough as Uber Inc. has had it over the last seven days.
It all started so well too – after weeks of negative press, Uber hit the headlines last Monday when it announced a $1.2 billion cash injection that saw its valuation soar to a whopping $41 billion. But that was immediately followed by sensational headlines from New Delhi, India, where one of its drivers was accused of raping a passenger. The subsequent fallout saw Uber banned from New Delhi and other cities amid allegations it hadn’t adequately screened its drivers.
If that wasn’t enough, Uber was hit with more problems at home too. The city of Portland, Oregon, sued the company for allegedly violating taxi laws and operating vehicles without a license, while in Los Angeles and San Francisco it was hit by further lawsuits over claims its background checks on its drivers are inadequate.
Uber was also reportedly banned in Thailand and Spain (though it’s apparently ignoring the former), while most recently the Australians have been on the attack, initiating court action in Victoria, and criticizing the firm for “surge pricing” during today’s Sydney terror attack.
Meanwhile in Brussels, Belgium, and now Paris, France, officials are trying to ban Uber and taxi drivers and are attempting to block its’ operations, demanding it complies with local taxi regulations. And if that wasn’t enough, a report on Wednesday revealed security holes in its website, which thankfully were quickly patched.
Most of Uber’s problems stem from the fact that it’s competing against the long-established and heavily protected taxi monopoly, and that industry is prepared to do whatever it takes to protect itself from any incursion.
Well, the taxi industry have to try a lot harder, if a report in The Washington Post is accurate.
For all of its problems, there’s one thing Uber has – its got a war chest that’s overflowing with cash, and it’s using that money to take the fight to the competition.
The Post says that local lobbying registration records show Uber has hired the services of at least 161 private lobbyists in more than 50 US cities and states. The company spent over $475,000 in Sacramento alone, according to the report.
Uber’s standard tactic is to use political advocates to generate public support for its services. The company often sends out notices to its users in any city where it feels threatened, asking them to write to their local politicans in support of it. In Virginia for example, it managed to persuade “hundreds” of its users to write to the state’s Department of Motor Vehicles (DMV) commissioner to complain about regulations which would make it illegal to operate. Uber also sent lobbyists to meet Virginia Governor Terry McAuliffe’s aides, with the result being that Virginia’s transportation secretary ended up asking the DMV to leave Uber alone.
The Post reports how Uber has managed to attract a number of political heavyweights to lobby for its interests in the US, including President Obama’s former campaign manager David Plouffe, as well as former state legislators and governor aides.
Due to the negative press and somewhat aggressive tactics of its management, Uber has developed a rather dubious image over the last few months, but the company seems determined to fix that, whatever the cost. “We have to correct it,” said Plouffe to the Post. “Part of this is just when you’re maturing and growing, you’re going to make mistakes.”
And Uber is clearly prepared to pay a very high price to fix those mistakes.
Image credit: Uber.com
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