Leaked Uber docs reveal bare-knuckle expansion tactics: investigation

Uber ride-share signage is posted at Los Angeles International Airport in Los Angeles on July 10, 2022. (REUTERS/David Swanson)
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Updated 11 July 2022
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Leaked Uber docs reveal bare-knuckle expansion tactics: investigation

  • Company officials leveraged the sometimes violent backlash from the taxi industry against drivers to garner support, probe found
  • The investigation also found that Uber worked to evade regulatory probes by leveraging a technological edge

SAN FRANCISCO, US: A leaked cache of confidential files from ride-sharing company Uber illustrates ethically dubious and potentially illegal tactics it used to fuel its frenetic global expansion beginning nearly a decade ago, a joint media investigation showed Sunday.
Dubbed the “Uber Files,” the investigation involving dozens of news organizations found that company officials leveraged the sometimes violent backlash from the taxi industry against drivers to garner support and evaded regulatory authorities as it looked to conquer new markets early in its history.
Culled from 124,000 documents from 2013-2017 initially obtained by British daily the Guardian and shared with the International Consortium of Investigative Journalists, the revelations are the latest hit for a company dogged by controversy as it exploded into a disruptive force in local transportation.
The cache includes unvarnished text and email exchanges between executives, with standouts from co-founder and former chief executive Travis Kalanick, who was forced to resign in 2017 following accusations of brutal management practices and multiple episodes of sexual and psychological harassment at the company.
“Violence guarantee(s) success,” Kalanick messaged other company leaders as he pushed for a counter protest amid sometimes heated demonstrations in Paris in 2016 against Uber’s arrival in the market.
Uber’s rapid expansion leaned on subsidized drivers and discounted fares that undercut the taxi industry, and “often without seeking licenses to operate as a taxi and livery service,” reported The Washington Post, one of the media outlets involved in the probe.
Drivers across Europe had faced violent retaliation as taxi drivers felt their livelihoods threatened. The investigation found that “in some instances, when drivers were attacked, Uber executives pivoted quickly to capitalize” to seek public and regulatory support, the Post said.
According to the Guardian, Uber has adopted similar tactics in European countries including Belgium, the Netherlands, Spain and Italy, mobilizing drivers and encouraging them to complain to the police when they were victims of violence, in order to use media coverage to obtain concessions from the authorities.
A spokesperson for Kalanick strongly denied the findings as a “false agenda,” saying he “never suggested that Uber should take advantage of violence at the expense of driver safety.”
Uber, however, placed the blame Sunday on previously publicized “mistakes” made by leadership under Kalanick.
“We’ve moved from an era of confrontation to one of collaboration, demonstrating a willingness to come to the table and find common ground with former opponents, including labor unions and taxi companies,” it said, noting that his replacement, Dara Khosrowshahi, “was tasked with transforming every aspect of how Uber operates.”

The investigation also found that Uber worked to evade regulatory probes by leveraging a technological edge, the Post wrote.
It described an instance when Kalanick implemented a “kill switch” to remotely cut off access of devices in an Amsterdam office to Uber’s internal systems during a raid by authorities.
“Please hit the kill switch ASAP,” he wrote in an email to an employee. “Access must be shut down in AMS (Amsterdam).”
Kalanick spokesperson Devon Spurgeon said the former chief executive “never authorized any actions or programs that would obstruct justice in any country.”
Kalanick “did not create, direct or oversee these systems set up by legal and compliance departments and has never been charged in any jurisdiction for obstruction of justice or any related offense,” she said.
But the investigation charged that Uber’s actions flouted laws and that executives were aware, citing one joking that they had become “pirates.”
The reports say the files reveal Uber also lobbied governments to aid its expansion, finding in particular an ally in France’s Emmanuel Macron, who was economy minister from 2014 to 2016 and is now the country’s president.
The company believed Macron would encourage regulators “to be ‘less conservative’ in their interpretation of rules limiting the company’s operations,” the Post said.
Macron was an open supporter of Uber and the idea of turning France into a “start-up nation” in general, but the leaked documents suggest that the minister’s support even sometimes clashed with the leftist government’s policies.
The revelations sparked indignation among leftist politicians, who denounced the Uber-Macron links as against “all our rules, all our social rights and against workers’ rights,” and condemned the “pillage of the country.”


Oman’s broad money supply surges 13.3%

Updated 06 October 2024
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Oman’s broad money supply surges 13.3%

  • Climb mainly attributed to 16.5% increase in narrow funds and 12.1% in quasi-money
  • Sultanate’s public revenue saw an annual decline of 2% year on year in the second quarter of the year, reaching $16.1 billion

RIYADH: An increase in Oman’s narrow money led the country’s broad capital supply to grow 13.3 percent year-on-year to reach 24.2 billion Omani rials ($62.6 billion) by the end of July.

Statistics issued by the Central Bank of Oman showed this climb was mainly attributed to a 16.5 percent increase in narrow funds and 12.1 percent in quasi-money. 

This consists of total savings deposits and time deposits in Omani rials, certificates issued by financial institutes, margin accounts, and all foreign currency reserves in the banking sector.

The growth in figures suggests vibrant and expanding economic activity, with more funds circulating within the economy. 

It comes as Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter of the year, reaching $16.1 billion, the country’s news agency reported in August. 

The sultanate’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations. 

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

The figures further revealed that cash in the hands of the public decreased by 5.2 percent by the end of last July, while demand deposits increased by 22.8 percent, the Oman News Agency reported.


Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 

Updated 06 October 2024
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Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 

  • Investors will receive bond allocations on Oct. 15, with the redemption period spanning four days starting Oct. 20
  • Subscriptions start at a minimum of SR1,000 per bond, with a maximum limit of SR200,000

JEDDAH: Saudi Arabia has launched its October subscription for the subscription-based savings product, Sah, offering a 4.92 percent return to promote financial stability and growth among citizens. 

The Shariah-compliant, government-backed sukuk issuance began at 10:00 a.m. Saudi time on Oct. 6 and will close at 3:00 p.m. on Oct. 8, as announced by the National Debt Management Center. 

Investors will receive bond allocations on Oct. 15, with the redemption period spanning four days starting Oct. 20. Redemption amounts will be disbursed seven days later. 

Subscriptions start at a minimum of SR1,000 ($266.66) per bond, with a maximum limit of SR200,000, allowing for the purchase of up to 200 bonds. 

Issued by the Ministry of Finance and organized by the NDMC, the fee-free savings products offer low-risk returns and are distributed through the digital channels of approved financial institutions. 

Sah is Saudi Arabia’s first government sukuk designed to foster saving habits by encouraging citizens to set aside a portion of their income regularly. The initiative supports the Financial Sector Development Program, part of Vision 2030, which aims to raise the national savings rate from 6 percent to 10 percent by 2030. 

Saudi nationals aged 18 and above can invest in Sah through SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al Rajhi Bank. The bonds are issued monthly, with a one-year savings period and fixed returns, paid out upon maturity. 

In September, the NDMC successfully allocated SR2.603 billion in sukuk. In a detailed statement, the authority outlined the distribution of the sukuk into six tranches. 

The first tranche comprised SR255 million, set to mature in 2027, while the second tranche secured SR375 million for bonds maturing in 2029. 

The third tranche reached SR638 million for Islamic bonds maturing in 2031, followed by the fourth tranche totaling SR1.021 billion, with maturity set for 2034. 

Moreover, the fifth tranche encompassed SR202 million for sukuk maturing in 2036, and the final tranche accounted for SR112 million, set to mature in 2039. 

As demand for such low-risk investment options continues to rise, it demonstrates the evolving preferences of individuals seeking stable, Shariah-compliant savings opportunities, further enhancing financial inclusion in the Kingdom.


Qatar’s non-energy sector growth stable despite PMI dip

Updated 06 October 2024
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Qatar’s non-energy sector growth stable despite PMI dip

  • The 12-month outlook for activity strengthened in September to the highest since March 2023
  • Non-energy private sector workforce expanded at the fastest rate on record

RIYADH: Non-oil business activities in Qatar were steady in September, even as the country’s Purchasing Managers’ Index dropped to 51.7 from 53.1 in August, an economy tracker showed. 

The latest report released by Qatar Financial Center compiled by S&P Global said that the PMI readings for September indicate the country’s sustained growth in the non-energy private sector. 

According to the credit rating agency, any PMI readings above the 50 mark indicate expansion of business activities, while below signifies contraction. 

Strengthening the non-hydrocarbon sector is crucial for Qatar, as the country is on a path of economic diversification by reducing its reliance on oil. 

Under the National Vision 2030, Qatar aims to gradually lessen its dependence on hydrocarbon industries and enhance the role of the private sector to drive the country’s growth further. 

“Although the headline PMI eased in September, on the whole, the latest survey results show a number of positive developments for the Qatari non-energy economy,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority. 

“The pause in overall growth of output wholly reflected the construction sector, with growth sustained in manufacturing, services, finance, wholesale, and retail,” he added. 

“There was a series-record increase in employment during the month as firms sought to expand capacity to address rising backlogs,” Al-Jaida also said. 

According to the S&P Global analysis, the 12-month outlook for activity strengthened in September to the highest since March 2023 as demand for goods and services continued to increase, leading to a build-up in outstanding business. 

The rating agency attributed this positive outlook among Qatari firms to economic development, a rising population, and investment in key sectors, including construction, real estate, and tourism. 

“The 12-month outlook continued to brighten, as firms mentioned investment in key sectors such as construction, real estate and tourism. September data also showed a record increase in wages, which should boost consumer demand,” said Al-Jaida. 

The survey revealed that the non-energy private sector workforce expanded at the fastest rate on record, surpassing the previous peak set in January 2019. 

Although new business rose and the outlook improved, purchasing activity softened slightly as firms reported broadly stable inventory holdings. 

The report added that September witnessed a further acceleration in demand growth for Qatari financial services. 

“The seasonally adjusted Financial Services New Business Index rose to 64.1, from 62.8 in August, signaling a rapid improvement in demand conditions with the fastest growth since August 2022,” said S&P Global. 


Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3

Updated 06 October 2024
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Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3

RIYADH: Saudi Arabia’s e-commerce sector continues its upward momentum, with 39,769 businesses registered in the third quarter, a 9.4 percent increase year on year. 

The latest data from the Ministry of Commerce revealed that Riyadh led with 16,274 registrations, followed by Makkah with 10,023, and the Eastern Province with 6,328. 

In the Madinah and Qasim regions, e-commerce registrations reached 1,897 and 1,302, respectively. 

This growth highlights the Kingdom’s ongoing transition toward a diversified, digitally-driven economy, with e-commerce playing a crucial role. Saudi Arabia now ranks among the top 10 countries globally in e-commerce expansion. 


Aramco hikes Arab Light crude November prices for Asian buyers

Updated 06 October 2024
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Aramco hikes Arab Light crude November prices for Asian buyers

RIYADH: Saudi Aramco has raised its November pricing for Arab Light crude oil for Asian buyers, according to a recent price list.

The state-owned oil giant increased the official selling price of its Arab Light crude by 90 cents, bringing it to $2.20 per barrel above the regional benchmark.

Global oil prices are on the rise amid the growing tensions in the Middle East. Crude prices rocketed around 5 percent on Thursday. Analysts warned that slowing demand in many countries and plentiful supply within and outside OPEC is likely to eventually cap prices.

The oil giant slashed the prices of all grades to Europe and the US .

The Arab Light price differential for buyers in West Europe has been set at $0.45 above the ICE Brent, according to an emailed statement from Aramco.

The price hike aligns with market forecasts of around 45 cents and has driven the medium sour crude price to its highest point this year. On Wednesday, Saudi Arabia confirmed it would maintain its voluntary output reduction of 1 million barrels per day through November and until the end of December 2023.

Saudi Aramco also increased the price of Extra Light crude for Asia by 50 cents in November, bringing it to $3.35 a barrel above Oman/Dubai quotes. This adjustment reflects the rising prices for light sour grades in the spot market, while the OSPs for Arab Medium and Arab Heavy remain unchanged.