In: Finance
Yes,we agree with Peter Thiel’s assessment that Uber is the “most ethically challenged company in Silicon Valley”.
Uber is a San Francisco company that provides what essentially are private taxi services. The company uses an app to allow customers to order drivers to their location. It has gotten fairly controversial and is facing two lawsuits. The case against it relies on two main points.
Uber is not technically a taxi company, and so doesn't follow the
same regulations required of one. This is frustrating to the actual
Cab companies who are trying to compete, while maintaining a
distinct disadvantage. These companies argue that Uber should be
required to follow the same rules as they have to. Until that
happens, Uber will continue to have a distinct advantage over
them.
On one hand, many Silicon Valley companies are known for their commitment to providing technology and services that solve problems, help people, and generally contribute to social progress. That said, the needs of competition can lead to some cut-throat practices, and no company better illustrates that facet than Uber. The recent news of their deplorable practices is a huge blemish on the image of Silicon Valley as a hold.
Uber has done plenty of ethically questionable things lately, from attacking a journalist to blaming the customer. Uber's commercials are rated S for sexist, its drivers are treated as commodities, and its CEO needs a PR campaign. It seems like it belongs in the corporate Hades of Silicon Valley.