Connect with us

Tech News

Uber CEO apologizes for “mistakes” after London license blow

Published

on

Uber’s new CEO Dara Khosrowshahi has written an open letter apologizing for “mistakes we’ve made” following the announcement on Friday by London’s transport regulator that it was withdrawing licensing from Uber — having deemed it is not “fit and proper” to operate.

In the letter Khosrowshahi thanks Uber users for “support over the last few days” — likely an indirect reference to the Uber-initiated online petition calling for a reversal of TfL’s decision which has now racked up more than 750,000 votes (though it’s unclear how many of those are from actual users of Uber in London) — and goes on to concede the company has “got things wrong” before saying sorry.

He also writes that Uber “must also change”, and says his intention for the company is to “run our business with humility, integrity and passion”.

In an internal email sent to staff on Friday, which was leaked to Mike Isaac of the New York Times, Khosrowshahi also told Uber’s workforce: “Going forward, it’s critical that we act with integrity in everything we do, and learn how to be a better partner to every city we operate in.”

While the new CEO’s tone is markedly different from Uber co-founder and ousted CEO Travis Kalanick, whose strategy can be summed up as aggressively ignoring rules to aggressively accelerate expansion, Khosrowshahi’s response to Uber’s business crisis in London risks looking rather similar to when Travis was at Uber’s wheel — given that, on the one hand he’s accepting culpability in London, whilst simultaneously reaching for a legal brake and hoping to reverse TfL’s decision, with only a vaguely worded concession that “we do so with the knowledge that we must also change”.

Here’s the letter in full:

We want to thank everyone who uses Uber for your support over the last few days. It’s been amazing to hear your stories of Uber improving lives across the city – from drivers who use our app to earn a living, to riders who rely on us to get home safely after a night out.

While Uber has revolutionised the way people move in cities around the world, it’s equally true that we’ve got things wrong along the way. On behalf of everyone at Uber globally, I apologise for the mistakes we’ve made.

We will appeal the decision on behalf of millions of Londoners, but we do so with the knowledge that we must also change. As Uber’s new CEO it’s my job to help Uber write its next chapter.

We won’t be perfect but we will listen to you; we will look to be long term partners with the cities we serve; and we will run our business with humility, integrity and passion.

Here in London w’ve already started doing more to contribute to the city. Wheelchair accessible vehicles are on the road and our Clean Air Plan will help tackle pollution.

You have my commitment that we will work with London to make things right and keep this great global city moving safely.

Meanwhile, in an interview on BBC Radio 4’s Today program this morning, Uber managed to distribute more mixed messages.

Fred Jones, head of cities for the company in the UK and Ireland, claimed it does not understand why London’s transport regulator decided to withdraw its license in London, and said it wants to sit down with TfL “to understand these concerns”. (TfL said on Friday it will not be commenting further on its decision pending any appeal.)

Although he also went on to concede that Uber made “a mistake” in its handling of a customer complaint regarding one of its drivers — a driver who subsequently went on to commit an attack on a different passenger.

“We apologize to everyone involved,” he said on that specific incident.

Pressed on why Uber only notifies TfL when customers report serious incidents with drivers on its platform, and why it does not also notify the police, Jones said: “We’re working with the police to figure out how we can do this in a way that’s helpful to them.”

“This is absolutely an area where we want to go further,” he added.

Concerns about how Uber approaches reporting serious crimes was one of the four areas listed by TfL in its announcement that it would not be renewing Uber’s license, after the Met Police contacted the regulator detailing “significant concern” that Uber only reports less serious allegations and deliberately avoids reporting more serious complaints made by its users to try to avoid damage to its reputation.

“My concern is twofold, firstly it seems [Uber] are deciding what to report (less serious matters / less damaging to reputation over serious offences) and secondly by not reporting to police promptly they are allowing situations to develop that clearly affect the safety and security of the public,” wrote the Met Police’s Neil Billany in the letter to TfL.

“We were surprised by that letter from the Met Police because they haven’t raised any concerns direct to us,” said Jones on that, while also admitting to the aforementioned “mistake” in one instance.

“We just didn’t realize when the passenger wrote in how serious it was,” he added on that.

The company previously fought against a series of proposed changes to private hire vehicle rules in London — including a requirement for operators to have a fixed landline telephone number available for passengers to contact them at all times.

Other problem areas listed by TfL on Friday are: Uber’s approach to how medical certificates are obtained; its approach to how Enhanced Disclosure and Barring Service (DBS) checks are obtained (which relates to carrying out background checks to ensure workers do not have a criminal record); and its approach to explaining the use of Greyball in London (aka an alleged internal software program the company created seeking to evade regulatory oversight).

Also speaking to Radio 4 this morning, London’s mayor Sadiq Khan said he wants the city to be “a place for new technology” — but added that operators “need to play by the rules“.

Uber claims to have some 3.5 million users in London, and 40,000 drivers on its platform in the UK capital.

source: techcrunch.com/2017/09/25/uber-ceo-apologizes-for-mistakes-after-london-license-blow/

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech News

Paypal to allow users to buy, hold and sell four cryptocurrencies

Published

on

By

Bitcoin is up $400 to $12,296 today. Part of the reason is that Paypal hass received a conditional bitlicence from the New York State Department of Financial Services and will launch a service for users to be able to buy, hold and sell cryptocurrency.
In the release the company said it “signaled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide.”
The company is introducing the ability to buy, hold and sell select cryptocurrencies, initially featuring Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly within the PayPal digital wallet. The service will be available to PayPal account holders in the U.S. in the coming weeks.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president and CEO, PayPal.
“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”

This is great news for crypto but I’m told it shouldn’t have been entirely unexpected In June, there was a report that Paypal was working on direct crypto sales.

Source: https://www.forexlive.com/Cryptocurrency/!/paypal-to-enable-users-to-buy-hold-and-sell-cryptocurrencies-20201021

Continue Reading

Tech News

Nokia awarded contract to build 4G network on the moon

Published

on

By

Nokia has been awarded a contract to establish a 4G network on the moon. The contract is one of several that NASA is awarding to companies as it plans a return to the moon.

The $14.1 million contract was given to Nokia’s US subsidiary and is a small part of the $370 million total awarded to companies such as SpaceX. The cellular service will allow astronauts, rovers, lunar landers, and habitats to communicate with one another according to Jim Reuter, the Associate Administrator for NASA’s Space.

Nokia Logo

The 4G network that Nokia will build will be miles superior to the form of communication that was used during the early missions to the moon.

This is not Nokia’s first attempt to launch an LTE network on the moon. It planned to do so in 2018 in collaboration with PTScientists, a German space firm, and Vodafone UK to launch an LTE network at the site of the Apollo 17 landing but the plan never came to fruition.

Source: https://www.gizmochina.com/2020/10/18/nokia-awarded-contract-to-build-4g-network-on-the-moon/

Continue Reading

Tech News

Stripe acquires Nigeria’s Paystack for $200M+ to expand into the African continent

Published

on

By

When Stripe  announced earlier this year that it had picked up another $600 million in funding, it said one big reason for the funding was to expand its API-based payments services into more geographies. Today the company is coming good on that plan in the form of some M&A.

Stripe is acquiring Paystack, a startup out of Lagos, Nigeria that, like Stripe, provides a quick way to integrate payments services into an online or offline transaction by way of an API. (We and others have referred to it in the past as “the Stripe of Africa.”)

Paystack  currently has around 60,000 customers, including small businesses, larger corporates, fintechs, educational institutions and online betting companies, and the plan will be for it to continue operating independently, the companies said.

Terms of the deal are not being disclosed, but sources close to it confirm that it’s over $200 million. That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe’s biggest acquisition to date anywhere. (Sendwave, acquired by WorldRemit in a $500 million deal in August, is based out of Kenya.)

It’s also a notable shift in Stripe’s strategy as it continues to mature: Typically, it has only acquired smaller companies to expand its technology stack, rather than its global footprint.

The deal underscores two interesting points about Stripe, now valued at $36 billion and regularly tipped as an IPO candidate. (Note: It has never commented on those plans up to now.) First is how it is doubling down on geographic expansion: Even before this news, it had added 17 countries to its platform in the last 18 months, along with progressive feature expansion. And second is how Stripe is putting a bet on the emerging markets of Africa specifically in the future of its own growth.

“There is enormous opportunity,” said Patrick Collison, Stripe’s co-founder and CEO, in an interview with TechCrunch. “In absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30% every year. And even with wider global declines, online shoppers are growing twice as fast. Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking of what the world will look like in 2040-2050.”

For Paystack, the deal will give the company a lot more fuel (that is, investment) to build out further in Nigeria and expand to other markets, CEO Shola Akinlade said in an interview.

“Paystack was not for sale when Stripe approached us,” said Akinlade, who co-founded the company with Ezra Olubi (who is the CTO). “For us, it’s about the mission. I’m driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster. It is a very natural move.”

Paystack had been on Stripe’s radar for some time prior to acquiring it. Like its U.S. counterpart, the Nigerian startup went through Y Combinator — that was in 2016, and it was actually the first-ever startup out of Nigeria to get into the world-famous incubator. Then, in 2018, Stripe led an $8 million funding round for Paystack, with others participating, including Visa and Tencent. (And for the record, Akinlade said that Visa and Tencent had not approached it for acquisition. Both have been regular investors in startups on the continent.)

In the last several years, Stripe has made a number of investments into startups building technology or businesses in areas where Stripe has yet to move. This year, those investments have included backing an investment in universal checkout service Fast, and backing the Philippines-based payment platform PayMongo.

Collison said that while acquiring Paystack after investing in it was a big move for the company, people also shouldn’t read too much into it in terms of Stripe’s bigger acquisition policy.

“When we invest in startups we’re not trying to tie them up with complicated strategic investments,” Collison said. “We try to understand the broader ecosystem, and keep our eyes pointed outwards and see where we can help.”

That is to say, there are no plans to acquire other regional companies or other operations simply to expand Stripe’s footprint, with the interest in Paystack being about how well they’d built the company, not just where they are located.

“A lot of companies have been, let’s say, heavily influenced by Stripe,” Collison said, raising his eyebrows a little. “But with Paystack, clearly they’ve put a lot of original thinking into how to do things better. There are some details of Stripe that we consider mistakes, but we can see that Paystack ‘gets it,’ it’s clear from the site and from the product sensibilities, and that has nothing to do with them being in Africa or African.”

Stripe, with its business firmly in the world of digital transactions, already has a strong line in the detection and prevention of fraud and other financial crimes. It has developed an extensive platform of fraud protection tools, but even with that, incidents can slip through the cracks. Just last month, Stripe was ordered to pay $120,000 in a case in Massachusetts after failing to protect users in a $15 million cryptocurrency scam.

Now, bringing on a business from Nigeria could give the company a different kind of risk exposure. Nigeria is the biggest economy in Africa, but it is also one of the more corrupt on the continent, according to research from Transparency International.

And related to that, it also has a very contentious approach to law and order. Nigeria has been embroiled in protests in the last week with demonstrators calling for the disbanding of the country’s Special Anti-Robbery Squad, after multiple accusations of brutality, including extrajudicial killings, extortion and torture. In fact, Stripe and Paystack postponed the original announcement in part because of the current situation in the country.

But while those troubles continue to be worked through (and hopefully eventually resolved, by way of government reform in response to demonstrators’ demands), Paystack’s acquisition is a notable foil to those themes. It points to how talented people in the region are identifying problems in the market and building technology to help fix them, as a way of improving how people can transact, and in turn, economic outcomes more generally.

The company got its start back when Akinlade, for fun (!) built a quick way of integrating a card transaction into a web page, and it was the simplicity of how it worked that spurred him and his co-founder to think of how to develop that into something others could use. That became the germination of the idea that eventually landed them at YC and in the scope of Stripe.

“We’re still very early in the Paystack payments ecosystem, which is super broken,” said Akinlade. The company today provides a payments API, and it makes revenue every time a transaction is made using it. He wouldn’t talk about what else is on Paystack’s radar, but when you consider Stripe’s own product trajectory as a template, there is a wide range of accounting, fraud, card, cash advance and other services to meet business needs that could be built around that to expand the business. “Most of what we will be building in Africa has not been built yet.”

Last month, at Disrupt, we interviewed another successful entrepreneur in the country, Tunde Kehinde, who wisely noted that more exits of promising startups — either by going public or getting acquired — will help lift up the whole ecosystem. In that regard, Stripe’s move is a vote of confidence not just for the potential of the region, but for those putting in the efforts to build tech and continue improving outcomes for everyone.

Source: https://techcrunch.com/2020/10/15/stripe-acquires-nigerias-paystack-for-200m-to-expand-into-the-african-continent/?tpcc=ECTW2020

Continue Reading
Advertisement

Trending

Copyright © 2020 Inventrium Magazine

%d bloggers like this: