Weak legal department “by design”

Mike Isaac’s Super Pumped (p. 158) describes Uber’s legal department as not “particularly strong” which was “partially design” to increase Kalanick’s control.  Isaac remarks that Yoo “would push back on Kalanick occasionally, but her fear of  being ‘iced out’ kept her from getting in Kalanick’s face about every legal concern she had.”  Isaac continues: “Yoo was often unable–and at times reluctant–to influence her boss. When she did decide to raise an issue with Kalanick, Travis regularly treated her concerns as just another annoyance, especially when they had to do with legal compliance.”

Withheld information from investors

Mike Isaac’s Super Pumped (p. 131) describes Kalanick’s effort to reduce rights of investors:

Private companies aren’t obligated to make their internal statistics public, but investors with a significant ownership stake are generally given insight into the company’s financials. Kalanick, however, over time stripped some major investors of all “information rights,” and limited the degree of detail offered to others.

Isaac (p. 342) explains Kalanick’s response when investors demanded more information:

“So sue me,” he told [the investor]. “What’s your rep going to be in this industry if you sue your own company?”

Negative advertising towards Lyft

Mike Isaac’s Super Pumped describes Kalanick’s attempt to “cripple” Lyft through negative advertising:

Uber found ways to mess with Lyft. All around San Francisco, Uber bought street signs and billboards targeting Lyft.  Each billboard showed a large, black disposable razor blade with “Uber” printed on the handle, poised above one of Lyft’s pink, cuddly trademark mustaches. In the text behind the graphic, Uber made its message clear: “Shave the ‘Stache.”

(p.122)

Interfered with Lyft’s marketing events

Mike Isaac’s Super Pumped describes Kalanick’s attempt to “cripple” Lyft, including by disrupting Lyft marketing events:

He’d send his own employees to the [Lyft] events, where they would show up in jet black T-shirts–Uber’s signature color–carrying plates filled with cookies, each with the word “Uber” written in icing. Each Uber employee had a referral code printed on the back of their T-shirt. The codes were for Lyft drivers to enter when they signed up for Uber, earning them a bonus.

(p.122)

Encouraged regulators to pursue Lyft and Sidecar

In the period where Uber used properly-licensed black cars but competitors Lyft and Sidecar used ordinary vehicles, Travis Kalanick tried to get regulators to pursue Lyft and Sidecar. Uber leaders met secretly with San Franscisco transportation regulators to flag what they saw as violations.  Source: Mike Isaac’s Super Pumped (p. 119).  In addition, Kalanick personally blogged about the situation.

When Uber later launched UberX, with unlicensed vehicles much like Lyft and Sidecar, Kalanick wrote “We could have chosen to use regulation to thwart our competitors,” which Mike Isaac calls “disingenuous” in that Uber had in fact attempted to do exactly that.