Uber dealing with federal probe on allegations of espionage [Denver Post]
Sum and Substance: SAN FRANCISCO — Federal prosecutors are investigating allegations that Uber deployed an espionage group to plunder commerce secrets and techniques from its rivals. The revelation triggered a delay in a high-profile trial over whether or not the beleaguered ride-hailing service stole self-driving automotive know-how from a Google spinoff.
The probe beneath method on the U.S. Justice Department facilities on a 37-page letter that described allegations made by Richard Jacobs, Uber’s former supervisor of international intelligence. Jacobs had the letter despatched in May to an Uber lawyer. The letter contended that Jacobs had been wrongfully demoted after which fired for making an attempt to cease the corporate’s alleged misconduct.
Uber paid Jacobs $four.5 million as half of a confidential settlement after his firing, Jacobs stated whereas being grilled by Waymo lawyer Charles Verhoeven. Part of that settlement consists of Uber inventory, a $1 million consulting payment and a provision requiring him to not say something that may hurt Uber.
“It is possible that he has been bought off by Uber,” Alsup stated of Jacobs at one level throughout Tuesday’s drama.
Alsup described the allegations within the letter as “scandalous” and lashed out at Uber’s authorized workforce for not informing him about them earlier than he was notified by the Justice Department. “I can’t trust anything you say because it has been proven wrong so many times,” Alsup informed Uber lawyer Arturo Gonzalez. The decide additionally referred to as Uber’s espionage workforce “a plumber’s unit doing bad deeds.” …
My Take: It’s now spy vs spy within the Waymo/Uber lawsuit. Uber can’t appear to maintain its tales straight because it makes an attempt to discredit whistleblower Jacobs. While Uber’s counsel was calling Jacobs an extortionist for trying to extract funds to maintain Uber’s soiled little secrets and techniques out of the information, CEO Dara Okay was primarily confirming Jacobs allegations in a tweet (see article under.)
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While the accusations will in all probability proceed to fly on this case, one factor is just not in dispute. Uber paid Jacobs $four.5 million, structured as a consulting contract, in trade for an settlement to not disparage the corporate – which is seemingly what Jacobs has accomplished. Talk about individuals behaving badly.
Uber CEO says he banned staff from utilizing safe messaging apps like Wickr, Telegram [Mashable]
Sum and Substance: Uber’s new CEO has been making an attempt to clean-up the mess cofounder Travis Kalanick left behind. One sweeping change was a complete crackdown on safe messaging apps on the subject of enterprise issues.
CEO Dara Khosrowshahi tweeted Wednesday that he forbid staff from utilizing apps like Wickr and Telegram shortly after he joined the corporate. He shared that nugget of info whereas Uber’s prime lawyer is at present testifying on allegedly receiving stolen proprietary info from Google’s Waymo. Wickr, like Snapchat, permits ephemeral messaging in order that the messages disappear and usually are not saved on the system.
It appears apparent that staff shouldn’t talk about “Uber-related business” in safe channels the place Uber administration and judges (in case they have been to be sued) couldn’t entry that info.
Of course, that’s not how Kalanick is understood to function, and it’s clearly not how he helped construct Uber right into a tech big.
My Take: This may clarify one thing that occurred to me on a number of events. I might get an e mail or a textual content message from Uber a few bonus supply or another matter, and once I would return later to seek out the message, it was gone – thereby depriving me of documentation I wanted to cope with driver help reps. Has anybody else had this expertise in communication with Uber?
Uber’s Losses Widen as SoftBank Launches Bid to Buy Shares [Bloomberg]
Sum and Substance: Uber Technologies Inc.’s internet loss widened to $1.46 billion within the third quarter, in line with individuals with information of the matter, because the ride-hailing chief struggled to fend off competitors, authorized challenges and regulatory scrutiny.
The San Francisco-based firm reported financials to shareholders as half of a proper bid Tuesday night time from a SoftBank Group Corp.-led consortium trying to purchase a big block of inventory. SoftBank stated in an emailed assertion that no less than two of Uber’s early backers intend to promote. The sale of these shares would worth the enterprise at $48 billion, a 30 % low cost to the final personal valuation.
General Atlantic and Russia’s DST Global, which had each been in talks to purchase inventory, dropped out of the deal, stated one individual, who requested to not be recognized as a result of the small print are personal. The remaining bidders within the group are SoftBank, Dragoneer Investment Group, TPG, Tencent Holdings Ltd. and Sequoia Capital, which wish to purchase no less than 13.four % of excellent shares, stated two individuals. …
My Take: These losses are simply astounding. Never earlier than has a startup misplaced as a lot cash as Uber.
Uber misplaced virtually as a lot within the first two quarters of 2017 ($2.6 billion) as they did within the full fiscal yr of 2016 ($2.eight billion). Consider this: for all the eye targeted on Softbank’s potential funding, at present burn charges, Softbank’s money infusion will final Uber all of two months.
Here’s my prediction: Uber goes to boost fares sooner somewhat than later. They don’t have a selection. They merely can’t maintain these ranges of losses indefinitely.