The year is 2030 and the CEO of Uber has just stepped off the stage at Davos following her keynote speech on how to effectively transform a business whilst simultaneously having a positive impact on the world. Uber is celebrated as a global success story by both shareholders and stakeholders, and is considered one of the best and most innovative companies in the world.
For most Uber drivers and customers today this would be a monumental stretch of the imagination. But what would it take to make that story true? This is the question we should be asking ourselves in the wake of Transport for London’s (TfL) bold decision not to renew Uber’s licence beyond the end of the month, and the answer must surely be that we can and should demand more of companies such as Uber.
The firm has lurched from scandal to scandal since its founding eight years ago, including allegations of sexual harassment, theft of IP from Alphabet, and tax avoidance. The categorisation of its drivers as self-employed rather than employees has triggered a generational review of employment practices in the technology-mediated employment market, giving rise to an enormous level of uncertainty over the treatment of such workers, which would be worrying for investors were it not so clear that the company’s ultimate goal is to do away with drivers altogether.
But imagine Londoners could design their own on-demand taxi service – by Londoners, for Londoners. What would it look like? In addition to affordability and convenience, customers should expect the following of a new and improved Uber.
Uber 2.0 will need to focus specifically on safety, which is, after all, a key component of its business. This will mean addressing TfL’s concerns with the safety checks that Uber employs and its approach to reporting serious criminal offences.
The financial risk of operating as an Uber driver lies with the 40,000 UK workers who operate through the app. Uber could introduce employment protections, paid holidays and sick leave, minimum wages and pensions. It could also roll out better financial support for its drivers, who are currently required to buy and finance their own vehicles.
We might also want this company to actively pursue electrification of its fleet to combat rising emissions. In fact, this is something Uber is already doing on a smaller scale. The firm recently announced a scheme to move to hybrid or fully electric cars in London by 2020 and a better relationship with regulators would encourage further progress on this front.
So how do we get from the Uber of today to this imaginary company that provides a good, safe, environmental product whilst maintaining a productive relationship with the regulators?
The Uber of 2030 could be a B Corp, and this tussle over licensing is an ideal opportunity to nudge Uber in that direction. B Corps are companies that commit to having a material positive impact in relation to workers, community and the environment – alongside making a profit.
This commitment has legal teeth, and that helps re-build trust with a skeptical public and policy makers. By adopting B Corp status, Uber would also voluntarily become one of the most radically transparent companies in the world. That additional public accountability would further enable Uber to regain the public trust and both its figurative and literal license to operate.
Given the recent corporate scandals involving Sports Direct and BHS, consumers and workers are right to be demanding higher standards of corporate responsibility. The pressure that TfL and London Mayor Sadiq Khan are placing on Uber is what proper enforcement looks like. They are standing up for Londoners and doing so from a position of relative strength given the importance of London as a market for Uber. It’s possible that Uber needs London more than London needs it.
The relationship that Uber has with its local regulators is even more important if you consider that this might well be the company that runs the driverless car technology that we will be entrusting our lives to in the not-so-distant future. Could we require Uber to ensure that its drivers are well-treated, that they drive cars that meet higher emissions standards, and above all that they maintain the toughest possible safety measures?
It would seem that this would require a radical change in business model but given the new CEO’s commitment to a company that is “meaningfully contributing to society, beyond its business and its bottom line” it may not actually be such a stretch of the imagination to think of Uber becoming this kind of company.
Charmian Love is co-founder and co-chair of B Lab UK. Michelle Meagher works on legal policy and community collaboration for B Lab UK. Jay Coen Gilbert, co-founder of US-based B Lab, also contributed to this article.
This article was originally published by WIRED UK
