• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechUber Technologies

What Could Take Down Uber?

By
Adam Lashinsky
Adam Lashinsky
Down Arrow Button Icon
By
Adam Lashinsky
Adam Lashinsky
Down Arrow Button Icon
May 18, 2017, 6:30 AM ET
Demonstration Against Trump's Travel Ban At JFK
NEW YORK, NY - JANUARY 28: After U.S. President Trump issued a travel ban on seven Muslim nations, and travelers with visas to the United States were detained at JFK airport, protestors gather to demand that they be set free at Terminal 4 at JFK airport on January 28, 2017 in the Queens borough of New York City. International travelers tried to make their way through the demonstrators and the police. (Photo by Andrew Lichtenstein/Corbis via Getty Images)Andrew Lichtenstein — Corbis via Getty Images

Not long ago the ride-hailing giant appeared impervious to criticism or opposition. Now it’s besieged by multiple scandals. A quick guide to its biggest threats.

Uber has always been controversial. Combine a business plan based on upending an entrenched industry with a CEO as aggressive as Travis Kalanick, and conflict is a given.

The sheer volume and severity of the company’s woes in the first few months of 2017, however, have altered the tenor of the Uber tale entirely. For the first time, real existential questions began popping up as roadblocks along its narrative journey: Could Uber’s wild ride grind to a halt just as rapidly as it revved up in the first place? Could the company survive without its enigmatic lightning rod of a leader? Can it survive with him?

Once a juggernaut that seemed impervious to criticism, bad press, and political opposition, suddenly Uber appears vulnerable. Indeed, it’s difficult to find anything that has gone right for the company. At every turn and on multiple fronts, Uber seems to be losing battles, whether in court, in the public’s perception, over the loyalty of riders and drivers, even among its own rapidly departing executive team. What’s worse, Uber’s woes have played out in plain view—despite the fact that it’s a privately held company supposedly free from the embarrassing need to disclose its activities.

Already this year the startup has lost a president and embarked on a public quest for a new one. (Rumored names to be Travis Kalanick’s deputy: AOL CEO Tim Armstrong; Tom Staggs, formerly Bob Iger’s No. 2 at Disney; and Nikesh Arora, the former Google (GOOGL) and SoftBank executive.) The Justice Department is investigating Uber’s “Greyball” program to deceive taxi regulators. Uber denies any wrongdoing.

A fraud lawsuit recently brought against Uber by Waymo, the Alphabet (previously Google) self-driving car unit, got worse in May when a federal judge referred the case to the Justice Department for review and possible criminal charges. Waymo alleges that Anthony Levandowski, a former Google engineer, stole its technology and that Uber is now using it. Uber denies the allegation. Not surprisingly, Uber’s competition has become emboldened. In the midst of Uber’s woes, U.S. ride-hailing second banana Lyft raised money from KKR and joined up with Waymo to deploy self-driving cars.

Uber is quite obviously in a precarious position. It has a global brand and legions of habitual customers. But both the company and Kalanick are suffering near-daily hits to their reputation. Here’s a breakdown of Uber’s biggest challenges:

Brain Drain

Jeff Jones, Uber’s short-tenured president of ride sharing who arrived from Target (TGT) and exited mere months later, isn’t the only top Uber executive to leave this year. Amit Singh, a star technologist from Google; Ed Baker, the “growth” guru from Facebook (FB); and Rachel Whetstone, another ex-Googler, who handled communications and policy, were among the most prominent departures.

Get Data Sheet, Fortune’s technology newsletter.

Hiring a No. 2 to Kalanick—who acknowledged the need after an embarrassing video surfaced of him berating an Uber driver—is the most pressing position to fill. It’s also the most difficult, predicated as it is on the candidate having meaningful influence over a CEO who has shown little interest in sharing power.

Political Problems

Uber rose to prominence by astutely marshaling the public against its own elected officials and regulators, who sometimes stood in the way of the easy-to-use new service. The political winds have since turned against the company. In the span of a week beginning shortly after Donald Trump’s inauguration, Uber suffered mass defections for appearing to thwart a taxi boycott at John F. Kennedy Airport that protested Trump’s controversial travel ban. Then Kalanick, who had agreed to serve on a Trump economic advisory council, dropped off before the first meeting—but still incurred backlash for engaging with the new administration.

Legal Jeopardy

Uber had hoped a federal judge would send the litigation by Waymo to arbitration. He did nothing of the sort, instead ordering a jury trial. He also banned Anthony Levandowski, the ex–Google engineer at the center of the dispute, from working on Uber’s self-driving project. At least Uber gets to continue pursuing the technology while the litigation continues—contrary to Waymo’s request. Elsewhere, published reports say the feds are investigating Uber’s scheme to deny rides to regulators by obscuring the availability of cars; the company says it originally used the technology to protect drivers from phony riders.

Bro Culture Backlash

There were rumblings about sexism at Uber before 2017. Many were repulsed by objectionable comments attributed to Kalanick over the years as well as the “brogrammer” milieu that nurtured him. A February blog post by an ex–Uber engineer tipped the scales of outside opinion decisively against Kalanick & Co. by alleging rampant gender discrimination in Uber’s ranks. Now the company is bracing for an independent report on its culture it commissioned from former U.S. Attorney General Eric Holder. Results are expected imminently.

A version of this article appears in the June 1, 2017 issue of Fortune. Click here to read the main story.

About the Author
By Adam Lashinsky
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Google Cloud revenue is now 18% of Alphabet’s business. Is this the beginning of the end of Google’s search identity?
Big TechGoogle
Google Cloud revenue is now 18% of Alphabet’s business. Is this the beginning of the end of Google’s search identity?
By Alexei OreskovicApril 29, 2026
3 hours ago
Man wearing a suit and tie and glasses
Big TechTech
Microsoft, Meta, and Google just announced billions more in AI spending. Only Google convinced investors it’s paying off
By Amanda GerutApril 29, 2026
3 hours ago
A man in a suit and tie
InvestingMeta
Meta just bumped its 2026 capex forecast up to as much as $145 billion for the AI boom—and investors flinched
By Amanda GerutApril 29, 2026
5 hours ago
How JPMorgan’s CIO is reshaping work at the bank with a $19.8 billion annual tech and AI budget
NewslettersCIO Intelligence
How JPMorgan’s CIO is reshaping work at the bank with a $19.8 billion annual tech and AI budget
By John KellApril 29, 2026
11 hours ago
hollywood
CommentaryMarketing
I spent 20 years learning to navigate an industry. Then I built a campaign for the man who’s dismantling it
By Matti YahavApril 29, 2026
15 hours ago
Current price of Ethereum for April 29, 2026
Personal FinanceEthereum
Current price of Ethereum for April 29, 2026
By Joseph HostetlerApril 29, 2026
15 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
3 days ago
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
Energy
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
By Shawn TullyApril 29, 2026
22 hours ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
2 days ago
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
Economy
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
By Eleanor PringleApril 29, 2026
18 hours ago
‘They left me no choice’: Powell isn’t going anywhere—blocking Trump from another Fed appointee
Banking
‘They left me no choice’: Powell isn’t going anywhere—blocking Trump from another Fed appointee
By Eva RoytburgApril 29, 2026
10 hours ago
More than two-thirds of U.S. schools say they’re unable to afford the cost of student free lunch—and MAHA’s dietary guidelines may make it worse
Economy
More than two-thirds of U.S. schools say they’re unable to afford the cost of student free lunch—and MAHA’s dietary guidelines may make it worse
By Sasha RogelbergApril 29, 2026
20 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.