Uber Challenges in London

This report discusses the challenges faced by Uber in London, including issues related to safety, background checks, and corporate social responsibility. Recommendations and future legal obligations for Uber are also discussed.

“UBER” CHALLENGES IN LONDON

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Table of Contents
Introduction................................................................................................................................2
Uber............................................................................................................................................2
London Uber Incident................................................................................................................3
Uber-Breaches............................................................................................................................3
Possible Legal Breaches by Uber...............................................................................................4
Need for Corporate Social Responsibility..................................................................................5
Guidelines for Uber in Context of CSR.................................................................................5
Recommendations......................................................................................................................6
Future of legal obligations for uber............................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
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Introduction
In this report, the discussion is about the Uber technology in the corporate world, which is
rapidly expanding its rides by attractive application that permit every customer to pay and
book for their rides with the help of smart phones from any part of the world. Apparently, it is
facing serious criticism regarding its sanctions and protests all around the world which will
be discussed along with the issues raised on it due to its non-safety, improper background
checks of drivers, customer privacy issues and security purpose faced by many people.
In this aspect, the main focus will be on the breaches committed by Uber, its possible legal
breaches, relevant impacts and need for corporate social responsibility along with its
recommendations and future legal obligations uber must follow to retain its position in the
market.
Uber
This ride hailing company is a multinational transporting network system which emerged in
2009 that offers door to door ride sharing, delivering of food and sharing of bicycle system. It
was established in San Francisco and operates in 785 huge cities around the world .Its
application can be accessed through the mobile apps and websites. Recently, in 2019 it is
estimated to have 110 million users in the world (Dudley et al., 2017).
U.K. has a very strong history of protecting the rights of its consumers. The Consumer
Protection Act established in the year 1987 which gives the opportunity to claim
compensation against the defective products producer if that has caused damage, personal
injury or death (Geradin, 2015). It also contains a strict liability test for the defective
products. The consumer rights act aims to rectify the traditional complexities in the consumer
laws by consolidating into eight separate legislations into a single piece. It was last updated
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in the year 2015 and splits into three parts, where the 1st part deals with consumer contracts
for products, services and all content of digital. 2nd part covers unjust terms, miscellaneous
and other common provisions are mentioned in the 3rd part.
Online trading is independent software that serves millions of people around the world for
over 25 years. It brings together everything that one needs to trade globally or locally and its
purpose is to build a market particularly for buying and selling purposes (Shaabany et al.,
2017).
London Uber Incident
In London, Uber which considered as fastest growing company got a serious hit and had
negative implications on many aspects with disapproved by group of drivers, customers at the
ride hailing company. Its new licence application was not approved by the London transport
on the basis of not being competent enough for hiring operator in private cars. Hence, its
renewed too got rejected because of deficiencies found relating to responsibilities of
corporation with certain offences matters of criminal, asking for medical certificates and
checking each driver’s background (Marique & Marique, 2018).
This company has almost 3.5 million users and 40 k drivers who have been approved with the
licence in the capital of London. However, the main concerned also rose towards using the
Greyball software by uber basically to respond and block the regulating authorities in
obtaining full information through its app and initiate more duties enforcing laws. As issues
regarding safety measures and danger to taxi business in Italy and Rio de Janeiro was the
reason to get rid of Uber from the biggest markets and also disagreed by their governments
both at national and municipal level. So, while facing much criticism from the law making
body, the trade unions and black cab drivers who requested over to the transport of London
regarding mandatory changes to be done by guar anting basic employment rights under the
new five year licence (Cohen, 2018). Therefore, it was also recognised by the inquiry of
parliament stating the hilarious conditions amongst the uber drivers who were treated as
sweated labour (Skok & Baker, 2018).
Uber-Breaches
 Data security and safety breach- In 2016, there was an incident of data security where
almost 57 million customers and drivers personal information was used in an
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unauthorised manner. As noticed by the information commissioners office the case
was not reported by the company and instead it negotiated with the cyber attacker to
pay USD one million with amounting in deleting the data and not disclosing it. By
such an unethical act which showed the failure towards safe guarding the personal
data of many people that further resulted in imposition of fine to approximately USD
five million- USD approximately six million. This also was stated by General Data
Protection Regulation that such case of breach regarding data security and safety issue
must be notified within 72 hours (Lisa & Thomson , 2018).
 Sexual Assault by Uber drivers- In the year 2015-16 it was found and alleged by
police authorities with cases of sexual assault of many passengers by the uber drivers,
out of which 32 drivers were investigated for rape, sexual assault and sexual
harassment. They followed aggressive strategies to take down the competition (F.
Larcker & Tayan, 2017).
 Hiring of unprofessional drivers- It was held by the court that because of the lack of
improper background evaluation it was found that uber is hiring and allowing recently
guilty criminals and other criminals of sexual act to operate their cabs which is a
threat issue to every travelling passenger. This has been challenged in the District
attorney of San Francisco by stating its mislead to the consumers about the issues
affecting their safety.
Possible Legal Breaches by Uber
The section 10 of the Consumer Protection Act 1987 reflects the general safety to the
consumer of the product and under sec. 11 the power of the secretary of the state to make,
alter and get consulted with the state to ensure the safety of the goods, makes sure that the
unsafe services are not held in the hands of the general public and tries to provide only the
appropriate information about the supply etc. is shown. Certain enforcing authorities are
appointed by the district council for watching whether the safety provisions in addition to law
are properly functioning or not. Misleads may make it a criminal offence, which may be
punishable with the fine for its recovery (s35).If uber company violates any law or regulation
made by any legislative authority of the land then it may also be punished.
Breach of any regulation made by the authority is an unlawful act which is prohibited and
sentenced up to 6 months of imprisonment and also with the fine up to level 5 on the standard
scale. Playing with the safety, security and protection of the consumer can held uber liable for
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the breach and thus punishments can be imposed to them according to the decided law. Under
13 the Secretary of the state may provide either prohibitory or a warning notice to the person
breaching the regulation. Breach of such notice is also an unlawful act which is punished with
3 months of imprisonment under summary conviction (s 13 (4), 14 (6)). If there has been any
regulation is been contravened or a plead has been made against the order of the suspension
or a statement is given to the magistrate then in that case the personal property of the violates,
may also be seized or forfeited by the enforcing authority.
Need for CSR
The principle of CSR is a wide term which demonstrates all the forms related to ethical
conducts, compliance to local and international standards which impacts the society and the
environment. A good corporate practice leads to increase in competitive advantage, raise and
protect the awareness of their brand and also will maintain trust with employees and
stakeholders (R. E. Slack, 2015). As Uber is facing major criticism and protest which has
even banned the company and its app after the stripping off operating license case in London.
However, this has resulted into the lack of corporate responsibility in areas related to not
reporting of severe offences related to crimes, not proper checks on background of the
drivers, hiring unworthy drivers, and the privacy of customers (Wang et al., 2018).
Guidelines for Uber in Context of CSR
 The role of management plays an important factor in successfully meeting the
requirements of corporate social responsibility. While considering every aspect of the
business the main aim is to build strong commitments from the top to the bottom
which will set effective standards and enforce relevant policies. The new chief
executive has promised the general public and its regulators that Uber will from now
onwards function more effectively and will highlight more of responsible conduct.
 It is important for uber to follow the global practices and become a long term player.
Uber needs to follow both the global and local instructions, along with its system and
policies. The importance of obeying the rules in the area of health, safety, ethics, risk
management etc. must be settled from the very beginning (Jeremy Moon, 2019).
 Uber has to actively deal with both internal and external stake holders. The drivers of
uber had sued uber for issues like non-payment of minimum wages, organisational
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process of employing workers in the company to make an union and for paid holidays
rights in the parts of US and London. So it has to make a proper and effective stake
holder management system according to the needs and concern of the consumers.
 The uber must maintain and properly manage its reputation by driving their business
conduct in a positive way. It should build and sustain organic reputation which
excludes the unethical practices for the long run in the society.
 Uber must accept criticism and its sanctions which come mostly through public, the
regulators and the civil society. The company has to respond towards all such
problems making proper strategies for avoiding them.
Recommendations
 The company needs to have a proper checking system which can identify all the
records of the criminality of their drivers.
 Every customer travelling by uber should have well equipped safety measures which
includes the tracking systems, complete information of the driver etc.
 Uber must acknowledge only those drivers who have a clear criminal record, so as to
provide proper security and avoid the risk of its customer safety.
 Privacy issues of the customers travelling in uber must be kept confidential and
should be maintained wisely without any interruption.
Future of legal obligations for uber
 Need to protect the data of the consumer- As seen in many cases Uber has misused
personal data of many customers shall now follow severe laws which are dealt under
the principle of protection act. It should also be carry forward in a way which is
justified, in a correct manner and pursued clearly. For specified and explicit purposes,
in adequate way which are consistent only to the necessity, handled in the manner
appropriate for the society and against unlawful and unethical processing (Kamleitner
et al., 2018).
 GDPR- Citizens of UK have the right to escalate their concerns by contracting with
uber data protection officer and this includes exploitation when one can’t provide
certain data which are not meant for disclosing. Its discloser would infringe the rights
of the persons under GDPR (Garber, 2018).
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 Consumer laws- Uber must perform its services with reasonable care and skills and
must provide relevant information about the binding services, reasonable price must
be paid for the services etc.
 Online trading- The company must follow the guidelines and relevant laws which are
applicable in dealing with the trading of goods and services. It should be based on a
user friendly goal which regards to safety and even dealt with the applicability of the
stock market.
Conclusion
Thus, from the above study it can be concluded that Uber needs to implement their system by
which many people got affected on worst conditions so, looking towards such situation the
drivers as well as the customers who are travelling by such rides should be ensured with
proper safety and protection of their data. As Uber has faced many difficulties which has
become a reminder to all such other businesses to safeguard and keep a check on their data
protection system and security practices in accordance to the specified laws.
To recover such breaches committed by the company and to maintain its reputation uber has
to sort out all its existing serious concerns in order to strengthen the trust of its clients and
also come back with positive impacts in the future.
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References
Cohen, T., 2018. Being ready for the next Uber: can local government reinvent itself?
European Transport Research Review, (s12544-018-0330-8).
Dudley, G., Banister, D. & Schwanen, T., 2017. The Rise of Uber and Regulating the
Disruptive Innovator. The Political Quarterly, 88(3), pp.492-99.
F. Larcker, D. & Tayan, B., 2017. Governance Gone Wild: Epic Misbehavior at Uber
Technologies. Stanford University Graduate School of Business Research, pp.18-3.
Garber, J., 2018. GDPR – compliance nightmare or business opportunity? Computer fraud
and security, 2018(6), pp.14-15.
Geradin, D., 2015. Uber and the Rule of Law: Should Spontaneous Liberalization Be
Applauded or Criticized? Competition Policy International , pp.pp.15-53.
Jeremy Moon, M.-L.S.-D., 2019. New Roles of Government in the Governance of Business
Conduct: Implications for Management and Organizational Research. Organisation Studies,
6(5), pp.117-23.
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Kamleitner, B., Mitchell, V., Stephen, A. & Kolah, A., 2018. Customers could be the weak
link in consumer data management systems. Journal of Data Protection & Privacy, 2(2),
pp.171-176(6).
Lisa, T. & Thomson , A.C., 2018. From panic to pragmatism: De-escalating and managing
commercial data breaches. A survey of our present and how to prepare for the future, 2,
pp.pp. 17-22(6).
Marique, E. & Marique, Y., 2018. Uber in London: A battle between public and private
regulation. Uber&Taxis – Comparative law studies, pp.163-200.
R. E. Slack, S.C.R.M., 2015. Exploring Employee Engagement with (Corporate) Social
Responsibility: A Social Exchange Perspective on Organisational Participation. Journal of
Business Ethics, 127(3), pp.pp 537–548.
Shaabany, G., Frisch, S. & Anderl, R., 2017. Secure Concept for Online Trading of
Technology Data in Global Manufacturing Market. Product Lifecycle Management and the
Industry of the Future, 517, pp. 690-700.
Skok, W. & Baker, S., 2018. Evaluating the impact of Uber on London's taxi service: A
strategic review. The Journal of Corporate Transformation, 25(4), pp.232-46.
Wang , , Dou, J. & Jia, , 2018. A Meta-Analytic Review of Corporate Social Responsibility
and Corporate Financial Performance: The Moderating Effect of Contextual Factors.
Business & Society, 55(8), pp.pp.1083-1121.
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