An anonymous reader writes: Former Uber CEO Travis Kalanick has absorbed blistering criticism for the way he handled allegations of sexual misconduct at the San Francisco riding-hailing service. But he can at least count on the support of one big name in Silicon Valley: former Yahoo CEO Marissa Mayer. Speaking at the annual Stanford Directors' College Tuesday, Mayer defended Kalanick, suggesting that he was unaware of the toxic culture brewing at Uber because of the company's rapid growth. Mayer's name has come up in reports as a possible replacement for Kalanick at Uber, though there's no indication the company has had talks with her. "Scale is incredibly tricky," Mayer said. "I count Travis as one of my friends. I think he's a phenomenal leader; Uber is ridiculously interesting. I just don't think he knew," she said. "When your company scales that quickly, it's hard." Mayer then compared Uber's situation to the early days of Google when it first brought in Eric Schmidt as CEO to help co-founders Sergey Brin and Larry Page manage the company.

In a Wednesday filing with a California court, Alphabet said a former self-driving executive Anthony Levandowski hatched a plan with Uber to steal more than 14,000 proprietary documents, including designs for the sensors that help the car see its surroundings. CNET reports: Alphabet says Uber's former CEO, Travis Kalanick, knew about the files but told Levandowski to destroy them. Uber has argued that it did not encourage or condone Levandowski taking any files from Waymo or bringing them to Uber, and has noted that his employment agreement affirmed he wouldn't do that. The litigation between Alphabet and Uber has been reported as a primary reason Kalanick was forced to resign as Uber's CEO Tuesday.

Kara Swisher, writing for Recode: It was Lao Tzu who said that "the journey of a thousand miles begins with a single step." In the case of complete and utter change reeling through Uber right now -- culminating in the resignation of its once untouchable CEO Travis Kalanick -- it turns out that it began with one of the most epic blog posts to be written about what happens when a hot company becomes hostage to its increasingly dysfunctional and toxic behaviors. It was clear from the moment you read the 3,000-word post by former engineer Susan Fowler about her time at the car-hailing company that nothing was going to be the same. Titled simply, "Reflecting on one very, very strange year at Uber," the essay deftly and surgically laid out the map that the media and others would use to prove to its out-to-lunch board and waffling investors that Uber CEO Travis Kalanick had to go. In her account, Fowler was neither mean nor self-righteous, although in reading the story that she laid out about her horrible time there, it would have been completely fair for her to have taken that tone.

Travis Kalanick has resigned as chief executive of Uber after pressure from investors, ending eight years of leading the ride-hailing company that has expanded round the globe but became mired in controversies. From a report: Kalanick had become a giant liability to the car-hailing company for a growing number of reasons, from sketchy business practices to troubling lawsuits to a basic management situation that was akin to really toxic goat rodeo. Thus, he had to go, even though some sources said he had the voting power to stay. But big investors also have leverage and a big enough group of them joined to use it. Those investors include Benchmark, Fidelity and Menlo Ventures, all of whom sent Kalanick a joint letter called "Moving Uber Forward" on Tuesday afternoon. Interestingly, Google Ventures was not among the group, even though its parent company Alphabet is now in a major lawsuit with Uber over the alleged theft of self-driving car technology from its Waymo unit.

After years of complaints, Uber is rolling out a tipping option for drivers. "Tipping is available in Seattle, Minneapolis and Houston as of today. We're starting with only 3 cities so we can create the best tipping experience for you and your riders. We'll be adding more cities over the next few weeks, and will make tips available to all U.S. drivers, by the end of July 2017," Uber said in an email to drivers. Gizmodo reports: Uber will also roll out a full set of driver-friendly features. The cancellation window will narrow to two minutes (it was previously five) and drivers will get a per-minute fee if a rider makes them wait beyond two minutes. Drivers will also get a cut of Uber's "teen fare" which had previously gone exclusively to Uber. Now, drivers will get $2 of the fee. Uber will also offer drivers the option to enroll in injury-protection insurance. Uber has always argued that it offers a seamless experience and that adding a tip feature into its app would interfere with that. The company promises an up-front fare to the rider, with no fumbling around for cash or evaluation of a driver's performance beyond assigning a rating.

An anonymous reader quotes Car and Driver: For automakers, the first bit of bad news is that people seem quite receptive to buying a vehicle from a tech brand such as Apple or Google, according to Capgemini's 17th Cars Online report, which surveyed some 8000 consumers in eight countries... Consumer interest in buying cars from tech brands has grown from 49 percent in its 2015 study to 57 percent in the latest report... There is also the growing popularity of ride-sharing services offered by the likes of Uber and Lyft. Fewer people will feel the need to have their own car if it's easy and inexpensive to order up a cab on their smartphones. Capgemini's survey found that 34 percent of car buyers see ride sharing and related services as a genuine alternative to owning a vehicle.

An anonymous reader quotes a report from Recode: One of the U.S. government's most powerful consumer protection watchdogs appears to be quietly probing Uber and the company's privacy practices. The inquiry is under way at the Federal Trade Commission, according to four sources familiar with the matter, where the agency's investigative staff appears to have focused its attention on some of the data-handling mishaps that have plagued the company in recent years -- perhaps including employees' misuse of "god view," a tool that had previously allowed some at Uber to spy on the whereabouts of politicians, celebrities and others using the ride-hailing app. The sources cautioned to Recode that FTC staff regularly question companies on consumer-protection matters, like privacy -- and often, the agency chooses not to pursue any penalties while closing its investigations as quietly as it began them. Still, the scrutiny could easily blossom into a full-fledged legal complaint against Uber -- a reality the company knows well.

Uber CEO Travis Kalanick will take a leave of absence from the world's most valuable privately held company, he announced in an email to employees Tuesday. From a report: Uber Chief Executive Officer Travis Kalanick told staff he plans to take a leave of absence, without disclosing a return date. The company will strip him of some duties and appoint an independent chair to limit his influence after a slew of scandals, according to an advance copy of a report prepared for the board. At a staff meeting Tuesday, the company will convey the results of a probe conducted by Eric Holder, the former U.S. attorney general who Uber hired to look into allegations of harassment, discrimination and an aggressive culture. The 47 recommendations include creating a board oversight committee, rewriting Uber's cultural values, reducing alcohol use at work events, and prohibiting intimate relationships between employees and their bosses. Uber's board met Sunday to review a detailed version of the report and voted unanimously to approve the recommendations. Afterward, the San Francisco-based company ousted Emil Michael, Uber's head of business.

BuzzFeed Editor-in-Chief Ben Smith describes a three-year-old meeting that Uber held -- which saw several influencers including actor Ed Norton among attendees -- as the beginning of the ride-hailing company's long slow meltdown. Later today, the company is expected to announce that its CEO Travis Kalanick would be temporarily stepping away, and his closest lieutenant is all set to hand his resignation. On Sunday, the company held a board meeting, which according to several journalists, lasted for nearly seven hours. The meeting capped a difficult stretch for the ride-hailing company, which is trying to weather an investigation into its workplace culture, a lawsuit by Google parent Alphabet over the alleged theft of self-driving car trade secrets, a federal probe into its business practices, and the recent departures of top executives. Back to Ben: At the dinner (which took place three years ago), Emil Michael, the right hand of CEO Travis Kalanick, heatedly complained to me about the press. The company, he told me, could hire a team of opposition researchers to fight fire with fire and attack the media -- specifically to smear a female journalist who has criticized the company. I suggested to him that this plan wouldn't really work because the story would immediately become a story about Uber behaving like maniacs. "Nobody would know it was us," Michael responded. "But you just told me!," I replied. [...] Instead of making any meaningful changes, Uber simply pressed on for years. It found both continued growth and accumulating scandals. Many of its crises, like those remarks to me, were tinged with misogyny, whether sexual harassment of its engineers or pulling a rape victim's medical files. After one of those engineers, Susan Fowler, stepped forward with a blog post detailing systemic sexual harassment and discrimination -- a post that was followed up by a series of devastating stories by The New York Times, Recode, and others -- the company invited former Attorney General Eric Holder to lead an internal investigation. Sunday, the Wall Street Journal reported that Michael is set to resign, and Reuters reported Kalanick will take a leave of absence ahead of what's expected to be a deeply damning Holder report. (Kalanick is also coping with a family tragedy.) They will leave having built the most valuable private company in the world. But it is a company whose cultural darkness is inseparable from its place as the icon of the tech boom. Uber -- and the boom -- have been defined both by massive new conveniences and by a corporate culture that is aggressive, paranoid, and dismissive of, in particular, complaints from women; a culture of enemies lists and cavalier approaches to the law. Emil Michael told Uber employees Monday that he has left the company.

An anonymous reader quotes The Verge: Apple is giving users the option to enable much stricter location rules with iOS 11, according to MacRumors. The company began this effort last year by adding a new option to iOS 10 that grants apps access to your location only while they're actively being used. But this "while in use" setting is up to developers to actually enable. The vast majority of popular apps did integrate that new feature. Others, however -- Uber chief among them -- still force iPhone users to choose between always or never providing location data. The latter choice breaks the functionality of an app like Uber, leaving customers with really only one option. Apple seems poised to eliminate this false choice in iOS 11 by making the "while in use" restriction available for every app.

A little more than a week ago, Uber fired Anthony Levandowski, the former head of its self-driving car project who is accused of stealing some 14,000 documents from Google's Waymo and using that information as the technological basis for Uber's self-driving cars. Uber is now appointing Brian Zajac as company's new head of hardware engineering. Gizmodo reports: Brian Zajac has worked at Uber since the early stages of its autonomous vehicle development in 2015, and previously developed robotic systems for the US Army and Shell Oil. He also contributed to research and development of a disaster-response robot at Carnegie Mellon University. (Uber poached extensively from the university to beef up its autonomous vehicle staff, though it's unclear whether Zajac's coming on board was part of that hiring spree.) With his promotion, Zajac will report directly to Eric Meyhofer, who took over Uber's Advanced Technologies Group after Uber fired ATG's former lead, Anthony Levandowski, for refusing to cooperate in a trade secret theft investigation.

More than 20 employees have been fired from Uber as part of an ongoing sexual harassment investigation, according to Bloomberg. From a report: In an explosive blog post earlier this year, former Uber engineer Susan Fowler alleged the company failed to act on sexual harassment and gender discrimination complaints. CEO Travis Kalanick called for an urgent investigation into the claims, led by former U.S. Attorney General Eric Holder. That investigation, with Holder at the helm, has given its own recommendations to Uber's board, according to Bloomberg. But Uber's 12,000 employees have been given an assessment of a separate investigation, led by an attorney in at Perkins Coie LLP, according to Bloomberg, who cite an anonymous source. Perkins Coie examined 215 claims, Bloomberg said.

Carolyn Said, reporting for San Francisco Chronicle: It's a San Francisco truism: Every other car on the streets these days seems to bear a logo for Uber or Lyft -- and many are double-parked as they pick up or drop off passengers. Now the city seeks to compel Uber and Lyft to share details on how many cars are roving the streets, so it can ensure that they comply with local laws; assess their impact on traffic congestion, safety, pollution and parking; and ascertain if they are accessible for disabled and low-income riders. City Attorney Dennis Herrera on Monday subpoenaed Uber and Lyft to disgorge records on four years of driving practices, disability access and service in San Francisco. "No one disputes the convenience of the ride-hailing industry, but that convenience evaporates when you're stuck in traffic behind a double-parked Uber or Lyft, or when you can't get a ride because the vehicle isn't accessible to someone with a disability or because the algorithm disfavors the neighborhood where you live," Herrera said in a statement. The subpoenas seek information on "miles and hours logged by drivers, incentives that encourage drivers to 'commute' from as far away as Fresno or Los Angeles, driver guidance and training, accessible vehicle information, and the services provided to residents of every San Francisco neighborhood," Herrera's office said.

According to The New York Times, Uber has fired Anthony Levandowski, the former head of its self-driving car project who is accused of stealing some 14,000 documents from Google's Waymo and using that information as the technological basis for Uber's self-driving cars. TechCrunch reports: During the court proceedings, Levandowski exercised his Fifth Amendment rights to avoid providing testimony or handing over evidence regarding his use of proprietary data from his time at Google. Uber had previously warned that Levandowski could face consequences for his lack of compliance with his employment requirements at the company. Uber confirmed via a spokesperson that Levandowski was terminated following months of the company attempting to have him comply with and assist its own internal investigation into the matter, and had set a clear deadline for him to do so. Uber also noted that Eric Meyhofer, who stepped in when Levandowski was removed from his role leading ATG in April, will continue to lead the team and take over Levandowski's direct reports.

An anonymous reader shares an article: Kanishk Sajnani did not receive so much as a thank you from a major Indian airline when he contacted them with alarming news -- he had hacked their website and could book flights anywhere in the world for free. It was a familiar tale for India's army of "ethical hackers," who earn millions protecting foreign corporations and global tech giants from cyber attacks but are largely ignored at home, their skills and altruism misunderstood or distrusted. India produces more ethical hackers -- those who break into computer networks to expose, rather than exploit, weaknesses -- than anywhere else in the world. The latest data from BugCrowd, a global hacking network, showed Indians raked in the most "bug bounties" -- rewards for red-flagging security loopholes. Facebook, which has long tapped hacker talent, paid more to Indian researchers in the first half of 2016 than any other researchers. Indians outnumbered all other bug hunters on HackerOne, another registry of around 100,000 hackers. One anonymous Indian hacker -- "Geekboy" -- has found more than 700 vulnerabilities for companies like Yahoo, Uber and Rockstar Games. Most are young "techies" -- software engineers swelling the ranks of India's $154-billion IT outsourcing sector whose skill set makes them uniquely gifted at cracking cyber systems.

The number of workers in the so-called gig economy will grow substantially in the coming years, according to a study by Intuit and Emergent Research. By 2021, the study finds, 9.2 million people are going to be working the frontline jobs at companies like Uber and Lyft. That number is projected to be 4.8 million this year. From a report: The rise in on-demand workers has been fueled largely by startups like Uber, TaskRabbit and Airbnb. It has also helped companies like Intuit, which makes tax software QuickBooks and TurboTax. The company's stock surged to an all-time high yesterday thanks to the gig economy. For context, there are currently more gig workers than people employed in the entire information sector (which includes publishing, telecommunication and data processing jobs) and IT services combined, according to data from the Bureau of Labor Statistics. Also read: A recent piece on The New Yorker which talks about the lengths to which people are willing to go to survive in such jobs -- a horrifying culture that is often celebrated in those companies.

An anonymous reader quotes a report from Bloomberg: Uber Technologies Inc. said it underpaid its New York City drivers by improperly calculating the company's share of passenger fares, and will pay out an average of $900 per driver in restitution, costing tens of millions of dollars. The back pay could run at least $45 million, based on the approximately 50,000 drivers the Independent Drivers Guild says work in New York City. The ride-hailing company has previously misled drivers about how much they could make and miscalculated fares. In this case, Uber was taking its cut of fares based on the pretax sum, instead of after taxes and fees as stated in its terms of service. The issue was also raised in a lawsuit against San Francisco-based Uber filed by the New York Taxi Workers Alliance. In March, Uber acknowledged that it had underestimated drivers' pay in Philadelphia by millions of dollars. "We are committed to paying every driver every penny they are owed -- plus interest -- as quickly as possible," Rachel Holt, Uber's head of U.S. operations, said in a statement. "We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end."

A worn-out welcome: The city rolled out the red carpet as a host to Uber's driverless car experiments, but nine months later its mayor and residents have built up a list of grievances with the public-private partnership. From a report: While our experience in one of the autonomous vehicles was thankfully pretty safe, it wasn't long before reports of accidents and wrong-way driving began to surface during the first month of the operation. Nine months later, the relationship continues to sour, according to a report in the New York Times. The things Uber promised in return for the city's support -- including free rides in driverless cars, backing the city's $50 million federal transportation grant and jobs for a neighborhood nearby Uber's testing track -- have not materialized. The situation was an issue during the mayoral primary, too, with critics calling out incumbent Bill Peduto for not getting these agreements in writing from the ride-sharing company.

schwit1 shared this article from the Austin Monitor: The Texas Legislature has cleared the road for Uber and Lyft to return to Austin on their own terms. On Wednesday, the state Senate overwhelmingly approved House Bill 100 on second and third readings, sending the statewide ride-hailing regulations to Governor Greg Abbott's desk for his signature. If Abbott signs it, as he is expected to do, the new law will preempt regulations City Council passed in December 2015 that both Uber and Lyft deemed too restrictive on transportation network companies such as themselves.
The new rules still require criminal background checks, but drop the requirement for fingerprinting. "We find it unfortunate that the 36 lobbyists deployed by the Silicon Valley giants were effective in convincing the State Legislature that there was a need to overrule the Austin voters," said a local ride-sharing company, which vowed to continue operating -- and to at least continue fingerprinting their own drivers. Houston's mayor complained the new statewide rules handed down are "another example of the legislature circumventing local control to allow corporations to profit at the expense of public safety."

An anonymous reader quotes a report from Motherboard: Uber drivers have been complaining that the gap between the fare a rider pays and what the driver receives is getting wider. After months of unsatisfying answers, Uber is providing an explanation: It's charging some passengers more because it needs the extra cash. The company detailed for the first time in an interview with Bloomberg a new pricing system that's been in testing for months in certain cities. On Friday, Uber acknowledged to drivers the discrepancy between their compensation and what riders pay. The new fare system is called "route-based pricing," and it charges customers based on what it predicts they're willing to pay. It's a break from the past, when Uber calculated fares using a combination of mileage, time and multipliers based on geographic demand. Daniel Graf, Uber's head of product, said the company applies machine-learning techniques to estimate how much groups of customers are willing to shell out for a ride. Uber calculates riders' propensity for paying a higher price for a particular route at a certain time of day. For instance, someone traveling from a wealthy neighborhood to another tony spot might be asked to pay more than another person heading to a poorer part of town, even if demand, traffic and distance are the same.