Why in news?
Uber CEO has stepped down after a shareholder revolt.
What is the issue involved?
- Uber scenario is a perfect example of how a start-up ignored corporate governance in its pursuit of growth and valuation, and flouted ethical norms while hiding behind notions of disruption and innovation.
- The trouble inside the company came out in the open early this year when a former engineer claimed that she was sexually harassed and discriminated.
- This opened the floodgates for more such complaints and added fuel to the #DeleteUber campaign on social media.
- Several labour organisations point out that Uber classifies its drivers as independent contractors and not employees, which deprives them of sundry benefits.
- There have also been cases of sexual assault on passengers, which some activists have said happened because of insufficient background checks on drivers.
- There have been accusations that employees have used some features on the app to track the movements of celebrities, politicians and journalists.
- Earlier this month, a woman who was raped by her Uber driver in Delhi in 2014 filed a lawsuit against the company for obtaining and mishandling her medical records.
Source: Business Standard
