Uber, Mired in Corporate Scandals, Sees Uptick in Bookings
nytimes.com
nytimes.com
Normal people want to get from point A to point B in the most comfortable, efficient, cheap way possible. If that means Uber then so be it. If that means Taxis then so be it. If that means Didi Chuxing then so be it.
It just turns out that Uber is well positioned and offers a compelling service in many countries around the world and so enjoys the resulting growing business.
I don't mean to downplay the importance of the events transpiring around and within Uber - they are unprecedented and important to varying degrees. But most normal people won't even have a cursory understanding of those events when it's all said and done. The world is vast and people are busy.
Yes, they will loose x% of users, but the ones that stay will be served at a profit. At this point, Uber is likely too big to fail.
Anecdotally, I have used Uber from the beginning and never even bothered to install anything else just because there was no compelling reason to, I don't see that be different for many users.
This will be interesting to watch unfold. To extend the runway will cost an increasing amount. However, as the investment from influential investors increases so does the ability of Uber to influence government policy and actually push through self-driving.
I've used this to my advantage over the past few years, as soon as a "big corporate scandal" breaks the stock tends to fall. Check their financials, buy the stock if it looks good, then wait a few months for it to all blow over.
My most recent was Wells Fargo during their opening accounts scandal. Bought early Oct, Sold late Jan. 20.06% profit.
There were so many headlines calling for boycotts of Wells, and to teach them a lesson with your wallet. In the long run people just don't give a damn.
For every one person saying: "Uber is evil, don't use them" There are ten saying "Meh, its cheap and convenient."
(And yes, I know other places already had good working systems. Good for you, doesn't help me, though)
I guess there is actually an 11th person saying, awesome I can financially support this evil company in the short term and make a quick buck.
I've been talking a lot about boycotts lately on HN to curb unwanted corporate behavior, in particular as it relates to a lot of the recent 1st Amendment issues and concerns (because 1st amendment is a limit on governmental power, not private entities).
No doubt boycotts are hard, and I'm not sure there was ever a time in history where anyone ever felt real change was easy, or ever a time where the people seeking change felt others/the world cared.
From MLK's quote "all it takes for evil to succeed is for good men to do nothing". To Gandhi's, "be the change you wish to see it this world." Maybe above all people just need to be inspired, and some historical perspective of what people can accomplish working together.
And as disheartening as a comment likes yours is, it's truthful, and I personally find it motivating and inspiring. I guess it's sort of like telling someone something can't be done and that being the catalyst for action. I'm pretty motivated at this time to create an organizational platform for boycotts in a crowdsourcing-esq style without need for funding.
If you don't mind, I guess like a sort of prelaunch feedback, what would it take for someone like you, willing to profit on bad corporate behavior, to instead become a leader for change?
Uber also had a secret program that in part helped them break the law by denying rides to users suspected of working with law enforcement (called Greyball). Another issue is Uber provided a lawyer for drivers (not an actual traffic criminal lawyer, but a Uber lobbiest), in legal terms that is a conflict of interest, plus very few of these fines have been paid after years and last I checked Uber (drivers) still owe millions to the county.
Again I'm not saying this is a boycott I would pursue, but perhaps it's worthy of discussion, and at minimum I could see boycotts getting Uber to take responsibility and pay these fines.
Here is a link that includes a copy of the Uber email instructing drivers to more effectively break the law: https://uberpeople.net/threads/welcome-to-miami-internationa...
Nope, never felt attacked. Takes a lot to get me riled.
I don't go seeking companies that break laws to enhance profits.
However, I did notice a long time ago, that constant publicity will have an effect on stock price. This is fairly common knowledge. Bad publicity and "public outrage" will frequently result in lower stock prices. So I take a look at their underlying business, see if its sound, then make a bet (buy shares) that the public will move on shortly.
Is that profiting on corporate scandal, or market (public sentiment) overreaction? Up to you to decide.
Who cares? What's wrong with profiting on evil.
Here's a crazy idea, how about worrying about not supporting and fighting evil rather than getting drawn it these philosophical debates.
What it does mean is that if you want to activate change, you must comply with the unaccommodating defaults, which are, broadly generalized, "no one cares". The people who accept this and work with it are successful. The people who don't aren't.
The difference in agility between insisting that everyone else should conform to your thought pattern as compared to learning to accommodate multiple styles so that your goal/cause/product meets a critical mass of demand is huge.
I was thinking organizing boycotts would have been an affirmative step towards turning wishes into action. Therefore, could you explain how organizing boycotts to address (at least) bad corporate actors behavior would be rewarding bad behavior? Is that a any press is good press argument or am I missing something else?
You have to realize that the stock market is an engine for predicting profit. If you're boycotting something for reasons that are not represented in profit, then all you're doing is turning yourself into the sort of damage that the stock market is best at routing around. The only way to punish companies is to impact their bottom line, and boycotting their stock does not have that effect unless you control enough of the market that the rest can't pick up the slack, and if you don't have that influence then the effect will be negligible.
If, as they say, the market can stay irrational longer than you can stay solvent, then certainly the market can stay rational longer than you can stay obstinate.
Well, unless you belong to the minority of people on this forum with no assets in the stock market whatsoever (either directly or indirectly via a bank account, pension fund, etc), you are part of the system that profits off corporate activity. The only exception is if you traced your holdings in such companies (Wells Fargo is the example given here) and where they are getting used to within reasonable limits (some activity may not be disclosed to you as a member of the public for instance), and divested from all of them. A priori, I would find such a situation highly unlikely.
All that the grandparent commenter did was to allocate/deallocate to get a better return, and is honest about it as you point out. What more can one ask for or expect? Full divestment to within information limits as outlined above?
And as you point out, changing the system is super hard.
> And as disheartening as a comment likes yours is, it's truthful, and I personally find it motivating and inspiring. I guess it's sort of like telling someone something can't be done and that being the catalyst for action. I'm pretty motivated at this time to create an organizational platform for boycotts in a crowdsourcing-esq style without need for funding.
I am very happy to see people with energy for these sorts of things; feel free to email me to discuss more.
> If you don't mind, I guess like a sort of prelaunch feedback, what would it take for someone like you, willing to profit on bad corporate behavior, to instead become a leader for change?
I can give you mine:
1. I need enough savings to live on a "student budget" for the rest of my life in the United States. Until such an amount is reached, compromises will be made, such as what you term "finanically support this evil company in the short term and make a quick buck".
2. I do not wish to do this full time at any stage - there are other things in the world that interest me far more (chiefly scientific questions, usually from mathematics/applied mathematics). For example, if you provided a list of such-and-such companies engaged in such-and-such, and provided a summary of why you consider such a boycott worthy, I would evaluate it. Once upon a time I would have done the research myself; but I no longer have the energy and have a different set of priorities. On these lines, I have found http://www.givewell.org/ and more generally the "effective altruism" movement fantastic.
As appealing as it is to just use Vanguard index funds for my retirement account and be done with it, I have so far resisted the urge to do that for this reason. If I don't want a company to exist, I don't want to own that company, even if it only makes up 0.05% of my money. I think cheap, broad, cap-weighted index funds are the best way to invest in stocks, but I want the ability to exclude stocks of companies I find unethical.
There's an opportunity for a roboadvisor to replace all index ETFs with directly-replicated indexes. Vanguard TSM has around 3500 stocks and the international index also has thousands. I'm sure it was impractical and not cost-effective a few decades ago to buy thousands of stocks in fractional units for each customer account, but I think the large roboadvisors could pull it off today: they have scale, automation, and the ability to aggregate and batch all customer trades daily (minimizing trading costs). Wealthfront's direct indexing is a good start, but it's only for US large-cap stocks, and the lack of support for fractional shares means a 6-figure minimum account balance and potentially meaningful tracking error.
The fact that boycotts never work isn't just a moral shame in the abstract; it has real, practical policy implications. It's one of the main reasons why I'm dismissive of libertarianism and its conviction that government regulation is unnecessary because consumer behavior will fix wrongdoings.
You say you want to build a platform to organize boycotts, but consider: your network can't possibly become larger than Facebook (with 2 billion users), and I see constant attempts on Facebook to organize boycotts, to no effect. There's nothing you can do to significantly improve on this outcome.
Honestly, if you really want businesses to behave better, your best ROI would come from advocacy both in favor of more government transparency, and against libertarianism (especially among developer-types, where it has spread like a highly unfortunate mind virus).
I think it would take a few things, and I'll try my best to elaborate on why.
1. Ability to affect change. I like to be successful, its one of my primary drivers in life. If I spend X hours working on some task, I want to see the results. Changing large swaths of people to do anything, is a challenge. So there exists this function of needing to wield enough influence over a large enough population that you influence corporate choices. Until you reach that critical mass, you are insignificant. A company by law exists to make money for shareholders, so expect them to ignore your small voice for a more profitable choice until your voice is large enough that ignoring you is no longer profitable. Same mindset applies to corporate fines. "We the ORG hereby fine your company $100k for this practice allowing you to profit $10MM" Cool... so we made $9.9MM we otherwise wouldn't have made. "So hit me with a fine. We can afford it." -Jaime Dimon. Back to my original point, few people want to devote their working hours towards a problem they don't feel they can succeed at. You want me on your ship? Convince me my effort has a measurable effect. Make sure the effect is worth my effort.
2. Unified Direction A centralized boycott platform sounds great in theory, but there are people that want to boycott everything, for every reason you can think of. I guess you'll have an upvote system or some filtering mechanism so the most popular ones get visibility/funding, but you will far eclipse the reasonable number of companies to protest. Everyone has different thresholds, but I doubt I would want to live a life where I'm boycotting your platforms entire top 10 list. Remember the Occupy Wall Street protests? Tons of headlines all over the place, even Presidential comments. Without looking it up, what were their goals?
3. Passion I would have to care about the issue. Am I going to boycott YCombinator because their CEO built their house on an endangered sand flea population? No, I couldn't care less about the fleas. Would I boycott YCombinator if they decided my murder my family? Yup. Every issue falls somewhere on the scale of "does this matter to me." Its hard to become a leader for changes you don't care about. Some people are selfish, some aren't. Everyone decides for themselves.
4. Fads This one is almost what I directly referenced in my original comment. Its popular to hate a company for a month, then something else pops up in the news and steals attention. How long do you expect to keep the boycott strong enough to matter? I don't want to be a leader hopping on the latest headlines every 4 months.
You solve those problems, and I would be the "leader for change." However, if you've solved those problems, you have no need for me.
>However, if you've solved those problems, you have no need for me.
You would exactly be they type of person needed, based on the very idea of what you did/have been doing, you are smart, informed and most importantly not afraid to act(literally put your money where your mouth is).
If I could build a platform that successfully addresses these issues it would be nothing without people, same goes for platforms like Uber or even Facebook and Google. The pre-internet examples would be individuals like Gandhi and MLK who obviously solved problems to effect change, but even they were just leaders who relied on the support of people.
I think this second comment of yours is as encouraging/motivating as the first, it just reinforces my belief the opportunity is really about changing attitudes and thoughts about these power dynamics, rather than the power dynamics themselves.
he is leading the change. by exploiting swings in prices driven by emotional (over)reactions, he flattens the price and excludes the emotional component from it. good for investors, good for everyone.
Same thing - all the furor died down over time. Doubt there was a seismic shift.
Why aren't there any financial firms doing this and consistently beating the market?
I'm sorry I don't want to march on the streets because a group of billionaires are acting like total assholes towards an aspiring billionaire trying to play the game of thrones with that court. The rest of us have-nots have real problems to worry about. Cry me a fucking river.
It then gained more steam after allegations of having a cutthroat workplace, accusations of sexism and sexual harassment (over which they fired 20 employees after an internal investigation), and allegedly colluding to rip off Waymo. Oh, and the accusations of misleading drivers, over which they ended up paying $20M to the FTC.
Lyft is the one buying marketshare, not Uber.
Hotels/Motels offer dubious over-priced quality. They hide behind no-refund policies and maintain in general poor standards.
So I support airBnb, uber, and lyft b/c I'm tired of being ripped off.
They also offer a consistent experience and pre-booking is often a feature. I use black cars to go back and forth to my home airport way more often than I use Uber/taxis/etc. when traveling.
>Hotels/Motels offer dubious over-priced quality.
Again consistency and reliability. I don't generally love the chains but I also don't have complaints about them which is what I care about most of the time.
Honestly, this is a tremendous feat. In that case, they should get their CEO from inside rather than outside.
I’d love to use it more (and I hear drivers prefer it) but between the app UI being so poor, booking taking longer, frequent cancellations by drivers, etc... I only check it second if there are no Uber drivers around.
It’s a shame as I really like parts of it more but the overall experience has always been worse for me
In HKG there seem to be issues, the prices went up and drivers often cancel (more so than in other countries I noticed); I do not think it should be possible for a driver to just cancel because they find the trip too short. I should be able to rate them for that. But still more convenient than cabs who you wave over, tell the location and then they drive off for the same reason.
Another gripe is payments; in some countries payment card A works, in some B works etc. Paypal als payment doesn't work in Thailand. Still, while annoying, it is better than 'only cash mate' that often happens in cabs.
Anyway more competitors would be good ; any way to get all rides on an acceptable level. In countries like Spain where they now are forbidden, I was happy to see them in hopes they would fix the issues with cabs in general (especially in the south) but nope, it just returned to the comfortable bad behavior of always. Last weeks ride from Malaga airport had a cabdriver loudly burp garlic for 20 minutes. Can only complain by filling a form no-one will ever look at.
"Poop tastes bad." "How PC, I'll eat some!"
Me, and not many other people, it seems.
When Uber started to have a bunch of scandal, I tried to switch to Lyft. I really did. But, stuck at a hospital after an emergency room visit, trying to get home at 10pm, I sat there for 45 minutes, watching a driver go from 4 minutes away to 5 minutes away to 8 minutes away, then no driver, then a new driver is 4 minutes away, then 4 minutes away, then 5 minutes away, then no driver, then a new driver is 12 minutes away, then no driver...
Come on.
Raise the price if you have to, but making me wait while these drivers decided I was too far away?
Screw that, and screw you, Lyft.
Imagine a new startup trying to convince you to switch your taxi for a new self-driving car? No way.
But an entrenched vendor that you have trusted for 5+ years? Ok, maybe next trip I'll accept your discount and try one of those self-driving cars.