Distressed Uber continues to pile on troubles.
The latest is serious. That's because it raises legal and ethical questions about how the ride-sharing company uses software. The problem is the software Greyball.
The U.S. Department of Justice is conducting a criminal probe. Uber parachuted in law firm Shearman & Sterling to do an internal investigation. Here are details from Fortune.
In March, The New York Times outed the negative capabilities of Greyball. Here is that article. It could have the same kind of significant impacts that The Wall Street Journal's outing of the problems with supposed breakthrough technology at Theranos had on that startup. Currently Theranos is struggling for survival.
Essentially, one attribute of Greyball is that it assisted Uber in identifying and getting around the scrutiny of government officials in locations where the service had not been approved. Among those was Portland, Oregon.
Since NYT exposure, Uber has stopped using Greyball. However, what's in play is its brand. The mindset among Uber watchers is: This company must be closely watched.
The criminal investigation is simply a probe. It doesn't signify that there has been wrong-doing. However, if criminal wrongdoing is found, those in the loop at Uber could go to prison. Prison terms have happened for leadership in the food industry who were convicted of being responsible for fatal foodborne diseases.
There is also a federal criminal probe at Theranos. Founder Elizabeth Holmes could wind up behind bars. Uber founder Travis Kalanick could be in an orange jumpsuit in the male wing.
Reflection: Both Uber and Theranos seems to need a leadership hack.
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