Uber Faces DOJ Probe Over Use Of Controversial 'Greyball' Software

PORTLAND, OR — Uber, the ride-hailing service that has been mired in controversy this year, is the subject of a Department of Justice probe for its use of the software "Greyball," which the company reportedly used to evade local regulators in municipalities where it was not allowed to operate. The news of the investigation was confirmed by the Portland Bureau of Transportation in a news release Friday.

The use of "Greyball," was uncovered by the New York Times. According to the report in the Times, the software was used to deceive authorities in cities where officials were trying to regulate the service or had banned it. The report found that Uber had a process to tag or "Greyball" individuals who it identified to be a local regulator and would show them a ghost version of the app or show them that no cars were available around them. If a driver accidentally responded to a person who had been tagged, Uber allegedly called the driver to cancel the ride.

Following the report in the Times, Uber issued a statement saying that going forward it would not be using the software to target action by local regulators. However, the company said it would "take some time" to ensure that the prohibition is fully enforced. The company also noted in the statement that the software was used for many purposes, including marketing promotions and fraud promotions.

One of the cities where Uber was using the software was in Portland, according to the Times. In 2014, when the service started in Portland it did not seek permission from the city and Uber was later declared illegal by Portland officials.

“We support the criminal investigation by the United States Department of Justice into Uber’s use of the Greyball tool to evade regulators, and will continue to move forward with our own efforts to subpoena the requested records from Uber," Portland City Commissioner Dan Saltzman and Portland Mayor Ted Wheeler, said in a statement. "My colleagues on the City Council have formally signed on to a resolution to subpoena Uber and force the company to turn over the Greyball playbook and associated software. Public safety is our top priority, and the City of Portland will hold everyone in the private for hire transportation industry accountable for complying with our safety and consumer protections. We fully support expanding transportation options for Portlanders, but we need to ensure everyone in the industry is playing by the rules, providing universal service, and acting ethically.”

Reuters first reported on the news of the inquiry and identified it as being a criminal probe. Sources told the news agency that the investigation is still in its early stages. As with any federal inquiry, it is unclear if any charges will be brought.

The inquiry is the latest scandal to plague the ride-hailing start, led by Travis Kalanick, who is known for his aggressive style and desire to achieve results no matter the consequences. Uber's problems began when it decided to remove a surcharge at John F. Kennedy Airport in New York, when taxi drivers decided to join those protesting President Trump's travel ban. The move was seen by some as taking advantage of the situation and gave birth to the #DeleteUber movement on Twitter. Following that, a blog post by a former Uber engineer Susan Fowler detailed the culture of toxic masculinity that existed at the company. The post resonated with other women at the company and prompted Uber to conduct an internal investigation, led by former Attorney General Eric Holder, who now works at the law firm Covington & Burling.

Following the fallout from the scandal, a sea of Uber executives have since left the company.

Image: Uber CEO Travis Kalanick by Adam Tinworth used under Flickr Creative Commons