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Category Archives: UBER

UBER and its curious case of corporate social responsibility!

13 Monday Feb 2017

Posted by tjungbau in Corporate Social Responsibility, UBER

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Adultery, CSR, UBER

Companies in today’s economy compete not only via prices, quantities, marketing or product characteristics but also on a very different level, showings of corporate social responsibility. While it is impossible to disentangle the motivations behind these actions—may it be to achieve a competitive advantage or due to true societal concern— UBER’s strategy is certain to set new standards.

A French businessman once had the brilliant idea to log in to his wife’s UBER app with his credentials to order a ride for the both of them. While he insists to have logged out after doing so, due to an alleged software glitch, the UBER app continued to send reports of all his rides thereafter to his wife’s cell phone. Comparing a real-time record of her husband’s whereabouts with his accounts led her to realize that he was having an affair and ultimately to divorce from the adulterer.

Now, apparently, the left alone Frenchman sued UBER for €45m in damages. It is to be expected that the trial outcome will decisively influence UBER’s future CSR efforts to protect the family as an institution.

Read here about the hilarious events in The Guardian.

UBER rents during the Paris strike

26 Tuesday Jan 2016

Posted by tjungbau in Social Dilemma, UBER

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France, Strike, UBER

Public transport servants as well as cab drivers of Paris decided to strike today. Amongst other resasons, they protest against the access of amateur drivers like UBER to the personal transportation market, which in so many European countries typically requires licensing. The bulk of UBER drivers go along with the strike in order not to stir up emotions even further.

While this is true for the majority of drivers, some appear to defect, most likely due to a lack of information and more importantly to realize potentially huge gains from offering a scarce good. UBER prices are determined by an algorithm depending on supply and demand for rides within a given period in a specific area. Prices this morning were already 8.3 times higher than the base fare. In addition, some foreign cab drivers, in particular Belgian residents, are expected to take on this unique arbitrage opportunity.

I am not aware of the specifics of French competition laws but it seems highly likely that this behavior, while rational, must violate racketeering guidelines. Due to the immense cost of identification, prosecution seems unlikely though. Thus, it remains only to hope for a more subtle resolution than last time this conflict erupted. If not, the French government might have a decent case to blame UBER executives for not disabling their algorithm during the strike. Since this seems to be in the interest of strike participants-and potential rioters-in the first place, an undesirable scenario seems possible.

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  • George Santos and the ambiguous effects of resume padding: the costs and benefits of lying and misrepresentation in the job market
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