Uber’s index says its current business model is ‘absolutely’ unsustainable.


LISBON, Nov 2 (Reuters) – Mark McGann, the whistleblower of the so-called Uber dossier, said on Wednesday that while the ride-hailing company appeared to be taking steps to improve its work culture, its business model was still “perfect”. Unsustainable.

The Guardian and Le Monde newspapers reported in July that Uber Technologies Inc ( UBER.N ) flouted laws and bribed politicians as part of an aggressive campaign to expand into new markets from 2013 to 2017. Read more

McGahn, who led Uber’s lobbying efforts to win over governments, identified himself as the source who leaked more than 124,000 company files.

He decided to speak out because he believes Uber is knowingly breaking laws and misleading people about the benefits of the company’s gig-economy model for drivers.

In response to the Guardian and Monde report in July, Uber said: “We do not and will not make excuses for our past behavior that is inconsistent with our current values.

McGahn said Uber’s current CEO, Dara Khosrowshahi, and his executive team “have done a lot of good things, but they still have a long way to go.”

Uber representatives could not immediately be reached for comment.

“My message to Uber is you’ve done well (but) you can do a lot better (because the current model is unsustainable),” McGann said on the web at Europe’s biggest technology conference, Summit, in Lisbon.

Uber recently reiterated that “at the core of its business model is the independent contractor, everyone wants flexibility because everyone wants to be self-employed.”

But he said the reality contradicts this view, with Uber drivers in several countries suing the company for “primarily low social protections such as sick pay”.

“Uber is spending tens of millions of dollars fighting law in Europe, the United States and other parts of the world.”

Additional reporting by Sergio Goncalves in Lisbon Editing by Nivedita Balu in Bengaluru Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.



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