February 2017, Super Bowl Sunday. Uber CEO Travis Kalanick is taking a black car home when he gets in an altercation with the driver. LIttle does he know, the entire exchange has been captured on a dashcam recording. And when it goes viral, Kalanick will have to fight for his reputation — and his job.
Lyft, meanwhile, spies an opening. As sexual harassment scandals plague their rival and users move to #DeleteUber, John Zimmer and Logan Green finally have a chance to really capitalize on their “good guy” reputation.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
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
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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.
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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
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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
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Transcript generated on 2020-06-15.