Quandary Sunday February, fifth, twenty, seventy about Sunday travel. Kallenbach is wished in the middle seat of Ann Arbor, black car, between two women. He stood Shipping is shoulders to the radio he's here few drinks speed and good the driver, Epps glancing in his rearview mirror challenge should become an upright. Thank you. Thank you. As women hop out of the car. The driver turns around in his seat to address Callanan he's, not to lose this opportunity. New european standards and dropping in general have to lure riders away from lived Ober constantly slashes prices leave

drivers no choice but to log more hours to make up the difference. I love lady, seven thousand dollar because of you. I think that, because of you, you give tv, every day. What you keep? What have? I changed about black what am I doing, what you drop, the brazen on online Yes, you did with twenty dollars, Jelinek isn't having as usual. He doesn't mince his words. We started with worry. The hare starts raising their voices. Is the mayan seventy five. What were what what points his finger at the driver? People don't like take responsibility. Today, wave every airport on good luck, the driver have the last word and that's because the entire encounter has been caught by dashboard, recording

April soon. Go viral Colony going to regret this moment for the rest of his life, because soon He'll have to fight for his reputation and his job. Support for business wars comes from Miro Moreover, the online collaborative whiteboard we're product teams get worked on the team. It upward leverages Miro too ACT and collaborate across their distributed team of over three hundred members because mirror Has such robust pre built frameworks and templates. Every single project it upward is touched by Miro gone. Are the days were teams point webcams at whiteboard, now everyone gets to participate directly from their browser in real time on Mirror online whiteboard in today's market, remote flexibility and distributed teams are increasingly the norm and companies need to adapt. In order to succeed, that's why the tea

it up. Work, uses Miro to maximize their remote workers, job satisfaction and streamlined collaboration across their distributed team, create your free account today at Miro, dot com, slash business wars that em, I r, o dot com, slash business wars From wondering, I'm David Brown This is business wars. In our last episode, lived started to make inroads in China, with a new alliance only to have goober swoop in and steal its partnership with Didi now face

heat from regulators and its own customers goobers Ninety nine problems and lived is barely one of them. This is episode. Five damage control February. Nineteen. Twenty seventeen, it's a cool Sunday in Palo Alto. When Susan Fowler sits down or a kitchen table. She takes a step, a coffee, Opens up her laptop the twenties is dressed in her day off lounge, where but she's anything but relaxed her mind, and is racing. It's been two months. And she quit her job as an engineer at Goober but she hasn't been able to forget what happened there. She opens up personal, blog and stares. At the blank page, then quickly closes or laptop she's scared. What she has to say is damning for Gruber ours, not going up against any old tech company. No she's about

take on the most valuable start up in Silicon Valley, but she is it's. The right thing to do. Ballard takes a deep breath She opens up her laptop again and starts typing reflecting on one very very strange year: it over a month official day rotating on the team. My new managers sent me a string of messages over company chat. He was in open relationship. He said in his friend was having an easy time finding new partners, but he wasn't he trying to stay out of trouble at work. He said, but he couldn't help get in trouble because he was looking for women to have sex with. It was clear that he was. Trying to get me to have sex with him, and it was clearly out of line that I immediately took screen shots of these chat messages and reported him hr. Valor takes another ship of coffee and keeps going

over the next few months I began to meet more women engineers and the company, as I to know them and heard stories. I was surprised that of them, had stories civil to my own three thousand words later. She leaned back in her chair and RE reads: what she's written she's been careful? keep her tone neutral, detached and to make sure every sentence can be backed up with documentation. She hates publish, valor, gets up in places around her kitchen, she tries to tidy up, but she gives up and sit back down and opens up her computer again. Oh my god, dozens of news outlets and picked up her blog post power. Seems request after request for interviews and appearances, the press quickly, Dubbs her whistle blower, a tall and of reactions is pouring in including support from Silicon Valley. Bigwigs.

It's so many messages, her phone crashes pretty soon her voice mail is full. It does take long for Travis Calendar to see her posed either he tweets a response what's described here is abhorrent and against everything we believe in Anyone who behaves this way or thinks this is ok, we'll be fired. Fellers post this is a tidal wave for over the backlash is immediate. Half a meal in people already deleted goober as part of the hashtag delete Goober campaign a month ago. Now the hash tag is surging again, with deletions rolling in an overwhelming were staffers. Yorker magazine Dubbs the new allegations, the making of a perfect storm for the company, or has an undeniable sexual harassment problem, and the higher can no longer sweep it under the rug. The company

judges and investigation into sexual misconduct led by former. U S attorney general Eric holder now hundreds women who were once afraid to speak up. Come for to share their experiences. Late March, twenty seventeen San Francisco John Zimmermann, Logan Greener sitting in lifts offices green. Cranes his neck forward to peer closer at his screen? He's looking at the figures first quarter of the year and he's having a hard I'm believing his eyes, John we're on track to do. Seventy million rides in the first quarter. Twenty seventeen Zimmer turns and looks at green, really that's huge has a comparative twenty. Sixty green is already crunching. The numbers It's a one hundred forty two percent increase simmer whistled people

switching to lift following the hashtag delete Goober campaign over got public backlash for crossing pick. It up J, F K, while lift scored, brownie points with liberals donating one million dollars to the acl you more than ever lived here positioned itself as the best route to moral high ground and why That's not always the most profitable approach, its helping lift, except and into one hundred new cities bringing its total count to three hundred cities? Just then sell rings. Oh hi good, to hear from you it's a potential investor. A month after founders, post investors, No, the tide of public opinion is turned even more forcefully against uber and their hedging their beds. Zimmer listens and then responds Yes, we are actually in the process of raising a funding round right now so. How much are you interested in putting in green looks expectantly simmer

who meets his eyes and keeps talking all right Well, we'll send you over a term. She right away talk soon. Banks by Green smiled and Zimmer meets his grin. Just then hello, Yes, we're raising right now, hoping to close in the next few weeks. Smiles and raises his eyebrows is green, watches, perfect, we'll be in touch. Ok by this is the most in bound interest, lift has ever had goober no longer looks like such a sure, bad and lift is primed to profit from goobers pain. A few weeks later, life closes a six hundred million dollar financing round in April goobers hit with,

more bad press, this time detailing a top secret spying program called operation hell from twenty fourteen to early twenty. Sixteen tracked lift drivers. The programme focused on drivers who work for both goober and lived and then use the information to lure drivers away from lived, it was another secretive tactic: to try to choke off lips driver supply. Bad up on its own, but even worse as part of a seemingly endless grab bag of dirty tricks. Sunday June eleventh twenty seventeen goobers seven board. Members are gathered at a law firm in downtown LOS Angeles, to discuss findings of a four month investigation into sexual harassment, allegations cabinet, sits, quietly and looks down, in graves, goobers, first employee and current senior vice president of global operations cleared his throat.

All right. I think we all know why we're here today. Please The content of today's meeting to yourselves, please please, talk to the press to prevent leaks each when members had to hand over their cell phone. While reading a hard copy of the report inside the office, there aren't in digital copies on the law firms hard drives graves continues: I think it's safe to say, none of us are pleased with what this investigation is found, That's an understatement. What's inside, the report is shocking. More than two Hundred fifteen claims of sexual harassment from employees issues ass, goobers global offices from jewel assault of physical violence lost said already been filed with many more to come. Grey looks down at the paper in front of him. You can see that holder is laid out a list of recommendations for us

the board members shuffled. The right page holder, makes it clear. Kallenbach needs to take a leave of absence. Count. It had been expecting this, but he's waiting to find out whether the removal would be temporary or permanent board member Bill girly shakes his head. Girly was once a clinic fan, but he's been sounding the alarm for a while now about the way Callin expend burning through cash. Worried. A leave of absence is to Light Travis. I think it's time for you to leave for good their board member nods. I agree. The rest of the room is unsure. Colonnade needs to be kicked out permanently, but they agree he needs to step away either. Co Founder Garrick CAP who hasn't been act. They involve for years, knows cow. Needs to bow out graves pauses and look,

each board? Member in the eye, I think we No, what we need to do the lift offices, John Zimmermann, Logan Green, sit down to write an email together. They know stumbles give them a giant opening to remind everyone that they're, the ones who treat their. Employees well and value customers and drivers. Zimmer starts. Tiding is Mean looks over his shoulder. We are proud of the values and actions that have always distinguished us This is not a time to gloat, particularly when many of the events are rooted in personal pain, for several individuals Green reads it over that's good that exactly the told we want to take hit sand and the message heads to the inbox of every limb. Employee Tuesday morning June thirteenth just before ten. I am pacific time. Two days after the big Uber board meeting

Goober employees from across the world are dialing into the companies all hands meeting in centre, disco employees, pile into the conference room in front of them. Board members line up for presentation. The besieged who were co founder and ceo. Were to be seen, but just as overboard. Member Marianna Huffington gets on stage to speak good morning, everyone else rate uber employ receives an email. It's from clinic didn't, doesn't know this yet and she keep talking Before we begin, I want to address the elephant in the room you're, probably wondering queries Travis. Well, start by telling you that Travis will not be around for a while. No one really listening to her now. They're all focused on How an example in it. He is that his parents have been in a terrible boating accident and his mother is died.

Some had already seen the news in the press, but they can't feeling emotional hearing it from calendar himself The employees read on recent events, Sir brought home for me that people are more important than work, that I need take some time off of the day to day grieve. My mother, whom I buried on Friday to reflect to work on myself. And a focus on building out a world class leadership team. But if going to work on over two point. No. I also need to work on Travis to point out to become the leader that this company needs and that you deserve hunting. And still standing on stage doesn't The colonists email is gone out, from another city. He's managed to upstage them all and with that the large Then life, founder and c o officially takes an indefinite leave of absence, but

board is about to decide to distance itself from Travis even more in order to save the company's reputation there are about to launch operation, damage, control. Less than a week later, Juno first twenty seventeen is in the left office working late with green Zimmer looks down at his phone. It's a news alert starts. Reading aloud travel Scallon Resigns is ceo. Green looks up. Oh my god, he's out for good Zimmer, looks at his co founder and shot yeah for good. You think this will change anything. You know the pair talk about everything they ve been through. Then they go quiet and. Up for the day as usual, they ordered Stu ride home, though this time the share one, both sick.

Quietly in the back seat. Zimmer breaks, the silence with a final thought. Maybe this means the nice guys will. Finally, finnish first has built an incredible business, but foundations are rotten, if it crumbles. Now, everything Kallenbach has worked for will be for nothing was his mistakes that ran over into the ground. Now ooh Board of directors needs to rebuild the company from the inside out or risk the biggest corporate implosion. Silicon Valley has ever seen. You know most of us, probably up with our bank the same way we ended up with our friends in elementary school. Closer to home or our parents chose them forests and keeping that bag and those friends works fine for a while, but at some point you realize there's more out there. You start to choose from

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We're business. Wars comes from our friends at rocket mortgage by Quicken loans. Home today is so much more Then it was yesterday, but it rocket mortgage Ms still all about you during these challenges, I am sure all experiencing the top priority it right mortgages, the health and safety of the communities they serve, and while things are changing quit every day, one thing that will never change is their teams com and to giving you the best mortgage experience possible. That's why? If you need mortgage support their team of experts, is there your questions and offer solutions. They understand hardships happen in their here to help whether that means working with save money on your mortgage or finding a new way to navigate payments. If you have questions the team at rocket mortgage has answers they know how important your home is to you, because you are important to them. If you need huge assistance, the home loan experts at rocket mortgage or available to help twenty hours a day, seven days a week, their home to yours. The team at rocket mortgage is with you visit rocket mortgage dot, com, slash business, wars, demand more call for cost information and conditions. Equal housing lender

licence in all fifty states, enamel ass consumer access, not a number thirty. Thirty. August. Twenty said: T Goobers Office in San Francisco, a bald man with a salt and pepper. Beard stands in the conference room next to Travis Colony. This direct cause or a see YO, he's just been appointed by the board, for most employees. This is their first look at him. He looks somber serious grown up he's a seasoned executive and the consummate professional, in other words the opposite of colony colonists up to the MIKE for the all hands tears poor down his face. Six months have been the hardest of my life.

I've made many mistakes. He looks. Sorrowfully out at the employees gathered. He tries Pull it together and turned his head to Causer shy but this man right here is an increase. Both the he worked at expense did amazing things there and now he's here is a new ceo. To introduce dollar a cause Jackie, employees cheer callin. I can even give him a standing ovation cause Russia. He stepped up to the MIKE and the crowd quiets down. There are three things you need to know about me, one going to be transparent and authentic. With you, Sir can deserve the same from you we'll be ass. You and I hope you will Yes me the employer shift in their seats. Causer shy keeps going too I dont like war metaphors, but I'm a fighter.

I'm all end and I'm going to fight for you with every bone in my body. Three I will know if I've succeeded. If everyone in Buber knows they can contribute to the success of labour in their own way and as their own selves. Rob politely applies, cause Russia. He ends by laying out a plan for the future. He continues this company has to change Got us here, not what's going to get us to the next level Kallenbach still crying takes a seat. His pardon this is over, We then cause Russia. He sets about mending Ober, starting by cleaning up its image He creates a new motto. We do the right thing period, he snags major investment from japanese giant soft bag and he so company ready,

its next step, going public September, twenty eighth San Francisco trendy. So my neighborhood bankers from Can Stanley are seated around a giant conference table and goobers headquarters at the the table is cause we're sure he behind them a presentation is projected on the screen. It reads: goobers IP, oh, banker for Morgan Stanley stands up and begins delivering his pitch wave. If we can guarantee over the best possible share price. Because Russia is listening closely goobers initial? public offering is the most. Important moment in the company's history All the big numbers thrown around to describe goobers worth the multiple billions. That's all on paper. This will make it real.

The banker weight to beat for maximum effect and continues. We expected Is I o devalue the company at one hundred DE billion dollars. Cause? We shall ye leans in one hand, twenty billion dollars, that's more than members valuation from just three months ago that price tag may it worth more than General Motors Board, Anthea Chrysler combined. It would also make it the most valuable start up in the world. What makes you think? That's the right figure. The banker pauses one hundred twenty billion dollar valuation would make a wonder, return on investment for all of Lubbers investors and the IP would reward the bankers with millions of dollars in fees

He believes in this evaluation, but he knows he needs to say just the right thing to convince cause. Russia he'd go with his bag and nothing speaks. More persuasively than dollars, billions of them, Well over, has revolutionised transportation its changed. Our entire society in pioneered a whole new economy cause Russia. He smiled listen I know first hand: I've been driving goober at night, the room which suits flats cause Russia? He grins. Thank you need the money you're right. I doubt I just wanted to see what it was all about this one hundred times, billion dollar evaluation, is the crew achievement of the stern life cosmos? He has had to guide goober through public relations, nightmares and replace scandal ridden CEO now. Finally, he can breathe a sigh of relief. The banker looks

Equally, it cause. We shy, his changed everything now Let's go show Wall Street. What Silicon Valley is made of wood that he said I'd towards cause Rorschach. His chair cause Russia. He stands up. Do they have a deal cause. Roget shakes his hand. Goober will soon be publicly traded. But as it tries to move into the future with self driving cars, the press of answering to investors puts its business model. Under more scrutiny than ever before. Both were an lift, we'll have to tighten their belts. Define profitability. Even a public health crisis changes everything in our next episode. Goober lift go public and an unexpected global pandemic bins

their businesses from wondering, this is episode. Five goober versus lived for business wars if you like our show, please give us five star, reining in a review and be sure to tell your friends subscribe, an apple pie, gas, Spotify or every year. Listening right now episode, note you'll, find some links and offers more sponsors. Please support them. There is another way you can support the show and that's by filling out a small survey and wondering dot com, slash survey and tell us, business stories, you'd like to hear a quick note about their rights. Creations. You ve been hearing. In most cases, We can't know exactly what was said. Those things are dramatization, but their based on historical research. If you to learn more about uber and lift. We recommend Super Parliament by MIKE Isaac and the upstarts by Brad Stone, I'm your host

The round Natalie Rover MAD wrote this story: Karen Lois, our senior producer and editor at it did and produced by Emily Frost, sound designed by Kyle Randal, our exit producers are Jenny, Lauer Beckmann and Martial Louie, created by our Non Lopez for wondering I'm Lindsey, grant the host of wondering show american scandal. We bring to life some of the biggest controversies in. U S, history, presidential lies environment. Disasters corporate fraud, but in our next series we look at a sport scandal that shocked the nation it all began when members of the Mafia approach, basketball, players at Boston, college to hatch, a point, shaving gambling scheme, these players earn themselves and the mob a fair bit of cash and also a criminal investigation Subscribed to american scandal on Apple podcast or Spotify to listen ad free, go to one reply. Stock come slash s