Uber - A Preview of our Corporate Feudal/Mafia Future

Crime was already a big deal on the Wild West Internet; but Uber has taken it to new depths. The more the judge in the Waymo/Alphabet case against Uber digs, the bigger maggots he digs up. Given Uber, this is no surprise. But the implications of what passes for "accepted business practices" on the Internet should terrify everyone.

One must begin by realizing that Uber is heavily funded by Wall St. to run at a massive loss ($3B in 2016, projected $5B in 2017 - its 7th year as a "startup"). You can look at the 2016 Hubert Horan series at Naked Capitalism to get the details on how it can never be profitable, except as a monopolistic rent extractor. (Cheap cab ride? You must have missed Uber’s true cost) Given that its business model is a fraud, it is hardly surprising that its business tactics are criminal. Be clear, this "competing Mafia families" business model is what the elites are driving towards with their massive looting and their complete compromising/bribing of governments around the world.

How did we get to this point? In the same way that nuclear weapons had a massive impact on military tactics and strategy, internet weaponry (server farms, big data, and machine learning, DDoS, ransomware, identity theft) is mutating business strategies and tactics into something more akin to those of an Italian Rennaisance city state. Think Machiavelli, condotieri, and spies.

The defensive tactics used by Uber are every bit as paranoid as the precautions taken by Edward Snowden when he had the entire MIC against him. The offensive tactics resemble the kind of skulduggery that the CIA deploys against hapless third world targets - right down to lying to courts and judges.

(Uber) Competitive Intelligence, or COIN...set up...Hell, a program Uber used to track the location of Lyft drivers and offer them deals to switch to Uber. By scraping data from Lyft’s app, Uber was able to collect driver ID numbers and therefore track Lyft drivers’ locations...Marketplace Analytics focused on gathering competitor data online, while (Strategic Services Group) SSG hired contractors to travel overseas and glean information about threat groups and other companies in person—in at least one instance, obtaining a surreptitious recording of a conversation between executives at Grab and Didi Chuxing, according to court testimony from an Uber employee.

The team stored the information it collected about competitors on its more secure server, detached from Uber’s corporate infrastructure and kept hidden from most of the company’s employees, two sources said. Members of the Marketplace Analytics team were issued new computers to access the server and were expected to use them only for competitive intelligence work, so that no data on the devices could be formally traced back to Uber. They also used the encrypted, ephemeral messaging app Wickr to communicate with each other ...the server needed to remain invisible to hackers and competitors. Even if Uber’s own systems were hacked, the company wanted to make sure that this system remained hidden. In addition to being issued non-attributable laptops that couldn’t be traced back to the company, employees also had access to pre-paid phones and Mi-Fi wireless internet devices...

Judge Alsup acknowledged the implications Marketplace Analytics’ work could have on the case. “You stood up so many times and said, Judge, we searched our servers; these documents never hit a Uber server,” he said in a rebuke of Uber’s lawyers. “You never told me that there was a surreptitious, parallel, nonpublic system that relied upon messages that evaporated after six seconds or after six days. You never mentioned any of that stuff. You never mentioned that there were these offline company-sponsored laptops.”

Uber's Massive Scraping Program Collected Data About Competitors Around the World

You read that right. Uber's computer infrastructure is compartmentalized like a black op. They tried to palm off a Big Lie on the judge; but a whistleblower named Jacobs blew their cover.

Jacobs (the whistleblower) started at Uber in March 2016 as a manager of global intelligence. He reported to Mat Henley, Uber’s head of global threat operations, and his work involved reviewing and parsing data from press reports, social media, and crime statistics in an attempt to understand potential threats in the regions where Uber operates,

"Strategic Services", "Competitive Intelligence", "Global Threat Operations" - these names and missions belong in the Pentagon or the FBI (crime statistics), not in some supposedly customer-friendly corporation. Corporations have long been known to run two sets of books, the real one and the one they show the IRS. Now, they have two sets of computer systems.

The government has been browbeaten into a hands-off attitude on internet criminality by techno-libertarians. For example, in the OP I recently posted about Russian Hacking, the FBI had to turn to private corporate resources to track down the Mirai bug. We spend $1 Trillion per year on defence, but the FBI has no internet forensic tools? Only because corporate gangsters like Uber, and their bankrollers on Wall St., don't want them to.

But, now, with plausible deniability laid on as thickly as for a CIA black op, Uber tries to hide its dirty tricks under the guise of standard business practices - despite the fact that they repeatedly get caught behaving criminally.

Example 1: Greyball (crime: interfering with police investigations)

Greyball was basically a way of identifying users who were suspected to be law enforcement or regulators...Uber used geolocation, phone model, credit card information, user behavior (including social media profiles), and other pieces of data to create a shadow app.

When a profile fit the makeup of a law enforcement officer, Uber would send that profile to the shadow app. Here users would see “ghost” cars that couldn’t respond to requests for rides, and that obscured the locations of real cars.

Uber acknowledged the tool’s existence in March and promised to stop using the software.

https://consumerist.com/2017/09/15/uber-also-used-greyball-software-to-e...

Example 2: Sanitizing "blown" operations. (crime: destruction of evidence)

“As part of Uber’s incident response team, I would be called when governmental agencies raided Uber’s offices due to concerns regarding noncompliance with governmental regulations,” Spangenberg said. “In those instances, Uber would lock down the office and immediately cut all connectivity so that law enforcement could not access Uber’s information. I would then be tasked with purchasing all new equipment for the office within the day, which I did when Uber’s Montreal office was raided.”


Spangenberg’s allegations were reported by the Centre for Investigative Reporting’s (CIR) Reveal project, but it isn’t the first time Uber has been accused of mistreating customer data. In 2014, Buzzfeed revealed the existence of the “God View” tool, after Uber’s New York general manager discussed using it to track a reporter’s journey. The tool’s existence appears to date back to 2011, when venture capitalist Peter Sims says he was tracked by a visitor to Uber’s Chicago offices, where the God View data was shown on a large public screen.

https://www.theguardian.com/technology/2016/dec/13/uber-employees-spying...

"Lock down the office." Geez, its like bookies flushing the betting slips down the toilet. Notice how, despite massive, repeated, deliberate schemes to violate the law, the company has not been shut down, nor have any of the officers been indicted for anything. All Uber gets are "cease and desist" orders and lawsuits that can be settled for Wall St.'s chump change.

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What is really a disaster about Uber is that it is sucking up all the oxygen for how to regulate the internet. That is SOP for capitalism - have a land rush in which a handful of people become mega-rich, and deal with the destruction wreaked by the landrush later, if at all. If government was still functioning, we would be drafting laws to set the rules; instead of relying on outdated and irrelevant precedents.

Courts are already wrestling with new forms of electronic communications. Today’s office creates so much data, the discovery process no longer involves handing over all your communications, there's simply too much of the stuff. Instead, parties often agree on a set of search terms they'll use to scan their databases, and hand over any files those turn up. Ephemeral messaging apps, like Wickr, Telegram, and Snapchat, add a new level of complication. What happens when the tech biz’s fetish for privacy runs headlong into the legal profession’s fetish for documentation?

Businesses have good, non-nefarious reasons for using ephemeral messaging. “There’s very little doubt that there are really strong and persistent efforts by nation states to undertake computer theft of trade secrets,” says Joel Wallenstrom, Wickr’s CEO.

The legal community isn't so sure. There are a few federal, state, and local regulations that require specific sorts of companies to keep specific documentation, like tax records, on hand. And if you have an inkling that you could be sued, you're supposed to keep hold of your documents, instead of routinely destroying them. Thanks to federal court decisions dating back to the early 2000s, companies under threat of suit must save even electronic documents, and turn them over in discovery, if asked.

Uber's Not the Only One That Should Be Wary of Disappearing Messaging Apps

From a legal POV, the internet is still lawless. There may be a few Wyatt Earp prosecutors out there trying to deal with things on a case by case basis. But, as a society that no longer does Big Picture/long range thinking, we have de facto stepped aside to let gangsters like Uber and their Wall St. backers define the future of our economics and politics by whatever dirty tricks they can pull. They will pretend the internet is "evolving", when in fact they are pushing it to devolve into the Law of the Jungle.

The internet already had well-known anonymity problems (Dark Net). The intelligence-agency-level secrecy that corporations are now implementing will complete the destruction of legal regulation of corporations, except insofar as they themselves choose to limit themselves. When this latest King of the Hill game is won by someone, then the obvious control points on the internet (e.g., the DNS service) will be "discovered" to be useful for enforcement; but they will only be used to the benefit of the winners. That is, the predators may put in some rules to protect themselves from mad dog predators; but the 99.99% prey will still be clueless, defenceless victims of whatever scam the plausibly-deniable corporations want to run.

The internet, increasingly controlled by a handful of megacorporations, increasingly behaving like spies and gangsters, is rapidly turning into the executioner of our democracy, not its savior (as many naive lefties have hoped).

Do I have to say it? We.are.screwed.

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The Aspie Corner's picture

The government is rendered inert. Corporations are the government. And this is exactly what the Libertarian Party was shooting for while David Koch was their VP candidate in 1980. Gary Johnson wasn't any better in that regard.

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Modern education is little more than toeing the line for the capitalist pigs.

Guerrilla Liberalism won't liberate the US or the world from the iron fist of capital.

arendt's picture

@The Aspie Corner

The inertness came about because the Democratic Party took a dive, a dive engineeered by the big money that backed the Clintons and Obama - who made sure that Goldman Sachs ran the economy, and bland nobodies ran the Justice Department.

I have never understood the appeal of Libertarianism. It is comic-book level nonsense. It stands history on its head. Its founder was a total mess who took welfare payments while defaming government. It's mouthpieces, like Paul Ryan, try to square the circle of being a good Christian and a follower of the atheistic, anti-social Ayn Rand.

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The Aspie Corner's picture

@arendt

have never understood the appeal of Libertarianism. It is comic-book level nonsense. It stands history on its head. Its founder was a total mess who took welfare payments while defaming government. It's mouthpieces, like Paul Ryan, try to square the circle of being a good Christian and a follower of the atheistic, anti-social Ayn Rand.

Just look at assholes like Creflo Dollar, Joel Osteen and Joyce Meyer. They make hundreds of millions of dollars preaching the mutant gospel of John Galt or Republican/Libertarian Jesus with meaningless sermons and vapid self-help books while telling poor folks that they're poor because of some imaginary moral failing.

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Modern education is little more than toeing the line for the capitalist pigs.

Guerrilla Liberalism won't liberate the US or the world from the iron fist of capital.

mhagle's picture

@The Aspie Corner

They promote greed, arrogance, and presumption.

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Marilyn

"Make dirt, not war." eyo

arendt's picture

@The Aspie Corner

how anyone could call this thinly-veiled greed any flavor of Christianity.

I have never bothered to listen to the charlatans who run megachurches. Never once listened to Falwell or Oral Roberts or Jimmy Swaggert. I'm barely aware of the names of those you mention, although I hear they are even more shameless about running a church like it was a giant multi-level-marketing sales team meeting.

I'm not sure what the balance between greed and hatred is in these new churches. I mean, is it only about making money; or is the "smite the heathens" meme still a major part of the show? My second-hand impression of the new stuff is that it is so Ralph Kramden-esque. All these get rich quick schemes. All the suckers encouraging each other about the mirage that hard work and giving lots of money to the bogus "preachers" will somehow make them rich. Of course, TPTB make sure there are just enough poster children "success story" to keep the Big Con going.

My sense of fundamentalism is the old-fashioned kind: bigoted, violent, ignorant. Does that mesh with John Galt's sense of "don't tread on me?". To put it another way, old-school fundamentalists are Bible-belting fanatics, motivated at a visceral level by purported attacks on their wives, daughters, and precious bodily fluids. I don't see Libertarians as anything more than sociopathic business types with an ideolgical fig leaf to cover their naked avarice. I don't see them as viscerally motivated; merely greed motivated.

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detroitmechworks's picture

@arendt it's always in the business of separating people from their money.

Might as well cue up some fun history for folks on this, and we can see how this is absolutely nothing new, and never tends to end well for the churches.

[video:https://www.youtube.com/watch?v=21YvrrLZhaE]

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I do not pretend I know what I do not know.

arendt's picture

@detroitmechworks

"Every time a church tried to act through the propaganda devices accepted by
an epoch, the truth and authenticity of Christianity were debased...In such moments
(when acting through propaganda), Christianity ceases to be an overwhelming
power and spiritual adventure and becomes institutionalized in all its expressions
and compromised in all its actions. It serves everybody as an ideology with the
greatest of ease, and tends to be a hoax...Thus reduced to nothing more than an
ideology, Christianity will be treated as such by the propagandist...this ideology will
no longer be Christianity. It will be just another doctrine."

- Jacques Ellul "Propaganda"

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@detroitmechworks

Thanks, that was very enjoyable!

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Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.

A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.

ggersh's picture

same biz model

yep, we are screwed

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I never knew that the term "Never Again" only pertained to
those born Jewish

"Antisemite used to be someone who didn't like Jews
now it's someone who Jews don't like"

Heard from Margaret Kimberley

lotlizard's picture

@ggersh  
(or 9, not counting the spaces).

You win the Internet for today!

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mhagle's picture

I didn't know about any of this. In recent years I have used Uber, because the last time I used the cab service, two starving looking guys showed up to fight over my trip.

Thinking about becoming Amish.

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Marilyn

"Make dirt, not war." eyo

arendt's picture

@mhagle

very hard for non-technical folks to follow, it is vital to follow it. They are stealing everything that isn't nailed down. Put something on the internet, and it escapes the law. It escapes human contact - just a menu tree that often leads nowhere.

If we let them make cash illegal, which they have already started to do, we will be SLAVES. If we let them claim we don't own things (and have no right to sell or repair them), but only rent them, due to embedded software, we will be SLAVES. (This too is already happening. See horror stories about $100k tractors that can only be repaired or modified by the manufacturer.)

The speed at which the Internet can steal both things and rights is astonishing to those still working in the real world. The last twenty years have been the biggest orgy of looting and installation of oligarchic control the world has ever seen.

I don't know how to stop it; but I know that we can't afford to ignore it. It is destroying our society.

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divineorder's picture

Private taxi company went out of business this year, leaving only Uber and Lyft. So now that means we can’t use the Cabbie Ride subsidy the County and the City use to discourage drunk diving on the weekend.

In Austin, TX

...

...Beirut

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A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.

arendt's picture

@divineorder
Run the mom-and-pops out of business via capital dumping; then jack the prices sky high because now its your company town.

Notice how absolutely powerless government has CHOSEN to be in this matter. Do you see one national level duopoly politician out there fighting to stop Uber and AirBnB from thumbing their noses at laws that have been on the books for a century? NO. Because local governments are either too small to make a difference, or too bought off by agents of Wall St. to make a stand.

Uber and its ilk have taken their cue from Amazon. Amazon started out as merely being a retail business with high margins because it could dodge sales tax on the lawless internet. Jeff Bezos perfected the "I'm not a monopoly because I lower prices and/or provide better service." dodge of anti-trust law. (Not that anyone enforces those laws anymore either.)

Nobody takes a long enough view to realize that Jeff's prices are still low because he is still in the "capital dumping" phase of the operation. He reinvests his profits to envelop and destroy ever more small businessmen in his spider web of warehousing, distribution, and advertising (for a mere 10-20% of the top). Since Wall St. loves his megalomania, it rewards Amazon stockholders with high share prices to make up for the lack of realized profits or dividends.

Bezos really intends to own the world. There is no natural limit to where he would stop. He is a warehousing incarnation of Matt Taibbi's "vampire squid sticking its blood funnel wherever it smells money".

Uber seems to be taking a WalMart strategy - simultaneously targeting many smaller markets that are easier to get monopoly control. They hope to get enough small town monopolies to cover some of the losses from their big city price war tactics.

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detroitmechworks's picture

Yes, I'm paying more, but If they're going to be tolerating me when I'm either drunk, stoned, or otherwise incapable of taking care of myself on the road, I will happily pay a premium.

Plus I prefer to pay cash, and Uber doesn't take it. Their loss, after all.

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I do not pretend I know what I do not know.

arendt's picture

@detroitmechworks

radio cab is unlikely to video your state of inebriation and use it against you or sell it as personal data.

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lotlizard's picture

https://duckduckgo.com/?q=uber+saudis&t=ffsb&ia=web

The Saudis have eagerly embraced Uber, allowing it to operate in Riyadh.
https://www.uber.com/de/cities/riyadh/

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Why am I not surprised? I may use Amazon for research but I never buy from them. Wouldn't use Uber if the police put me in the car.

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