Why Is Uber Still Having So Much Trouble with Its Ethics?

By Dr. Mark Friske
Faculty Member, School of Business, American Public University

Most companies attempt to keep their internal issues out of the media, but Uber seems to be an exception. Over the past few months, this company has been the subject of many stories that portray it as unethical.

Uber seems to be fine with its negative portrayal because the trend of unfavorable publicity sadly continues. It has also forgotten that negativity and notoriety come from these types of stories.

Drivers’ Behavior Has Been a Long-Running Problem at Uber

The company has been plagued for some time with allegations of sexual misconduct by its drivers. Local media seem to carry stories about Uber drivers each week.

To its credit, Uber did hire a third-party firm to investigate the allegations of sexual misconduct. That company recommended that a very small number of drivers be fired.

However, the issue of drivers’ misbehavior still leaves customers questioning their taste in using Uber. Some software developers have even produced phone applications to boost customer safety while riding in an Uber vehicle.

Viral Video of CEO Kalanick Arguing with Uber Driver Also Damaged Uber’s Reputation

Another issue for Uber was the viral video of an Uber driver and CEO Travis Kalanick in an argument. In today’s social media culture, it is wise to always remember that if we behave poorly, there’s a good chance our actions could wind up on YouTube and other sites.

Anyone can view such a video and decide whether certain behavior is acceptable. While most people can understand that driver compensation changes based on competition and profitability, Kalanick and the driver should have had a calm and rational conversation. Instead, Uber’s CEO exhibited unprofessional behavior.

In addition, Kalanick should have known about the Uber-supplied dashboard camera in the vehicle. He should have better assessed his surroundings before becoming emotional.

It’s possible the driver recognized and baited Kalanick to provoke an argument. However, any CEO should be very familiar with speaking in public, answering questions, and behaving ethically and professionally.

In the end, the actual video was the proof of what actually happened. Evaluation after the fact cannot cover up misguided behavior.

Uber’s Poor Reputation May Also Have Affected Disney’s Decision to Use Lyft Software

Think of the recent deal between Disney and Lyft. While Uber is not involved, it brings up the question of why wasn’t Uber involved?

Disney bought 27 minivans from Chevrolet to transport Disney World visitors staying at Disney’s BoardWalk Resort and the Yacht & Beach Club. The film and entertainment giant opted to install Lyft’s software, rather than Uber’s.

Why? Lyft’s partnership could be viewed as a seal of approval from Disney.

While this use of Lyft software at Disney World might not result in large profits, it does give Lyft positive exposure and media attention. Most customers think of Disney as customer-focused and ethical. Disney for the most part has a stellar reputation in its markets.

Uber Loses Its London Market

The media have also focused on Uber’s recent decision to end its operations in London. This decision was not made by the company itself, but by London’s transport authority, Transport for London.

Transport for London’s action speaks strongly about its safety concerns regarding Uber. The decision is the first of its kind to keep this company from operating in local markets. Similarly, other markets could follow suit and no longer allow Uber to operate.

Instead of stepping up and facing the underlining issues that led to this decision, Uber went to the media attempted to get Transport for London to revisit its decision. Uber has also started petitions to help the company regain its license in London. However, Transport for London says it will not reconsider its decision.

Uber Facing More Problems in the Future

These are only a few of this organization’s troubles. There are other lawsuits pending and other negative stories are being circulated.

So the big question remains: Does this company really want to fix its ethical problems? In our culture, which is heavily immersed in instant news and communication, Uber needs to get in front of its current situation and make significant changes.

So far, the company has not really addressed the specifics of how and why changes will be made and when that might happen.

About the Author

Mark Friske, Ph.D., is a part-time instructor in the School of Business at APU. He holds a M.B.A. in business administration and a Ph.D. in organization and management, both from Capella University. In addition, Mark has a B.A. in pre-law from Bob Jones University.

Mark is a U.S. Navy veteran and has 25 years of management and leader experience with Apple, Citibank, UPS and other companies. He is a management and leadership consultant with Disney.