Uber Reveals That It Received Thousands Of Sexual Assault Reports In 2018, Uber Stock took a hit

 

Ride-hailing App, Uber has revealed that it received thousands of sexual reports in 2018. This is contained in its safety report, which the company is releasing for the very first time. The company said it received 2,963 sexual assault reports in 2017, while that experienced in 2018 is 3,045. Even though the figure observed in 2018 is quite higher, Uber observed a 16% decrease in average incidence rate and attributes it to its recent focus on safety.

Non-consensual kissing of a non-sexual body part, attempted non-consensual sexual penetration, non-consensual touching of a sexual body part and non-consensual sexual penetration, are the subcategories that Uber classifies sexual assault into. However, these reported sexual assault cases were experienced by both drivers and riders, even it is reported that the riders accounted for about half ( that is 45%) of the accused parties across the five sexual assault subcategories

In 2017, Uber received 229 reports concerning cases of rape(which is the last subcategory)while that of 2018 was put at 235; and the reported incidences through both years occurred on 0.00002% of trips.

In a blog post, Chief Legal Officer of Uber, Tony West wrote, "Voluntarily publishing a report that discusses these difficult safety issues is not easy. Most companies do not talk about issues like sexual violence because doing so risks inviting negative headlines and public criticism. But we feel it is time for a new approach. As someone who has prosecuted sex crimes and worked on these issues for more than 25 years, I can tell you that a new approach is solely needed."

In an independent investigation carried out by CNN and published, 103 Uber drivers were found to have been accused of either sexual assault or abuse of passengers.

West further wrote, "confronting sexual violence requires honesty and it is only by shining a light on these issues that we can begin to provide clarity on something that touches every corner of society. And most importantly, by bringing hard data to bear, we can make every trip safer for drivers and riders alike."

West outlined measures being put in place by Uber to promote safety and prevent further sexual abuse. They include:

·      Recruiting over 300 staff concerned and dedicated to safety.

·      Rigorous background checks on drivers to rule out cases of criminal offenses.

·      Adding a technology that would facilitate Uber checking in on customers if they notice unexpected long stops during trips.

·      Giving riders an opportunity to report safety issues to Uber before completing their trips

·      Including an In-App Emergency Button to text 911 operations directly from the Uber application.

 

The sexual assault revelation causes Uber stocks to lose about $1 billion in market value.  The stock dropped 2.2% in premarket trading and the market cap dropped to $47.5 Billion.

Uber's stock has fallen more than 40 % since the company had it's IPO on the 10th of May, 2019.  Although, the company's stock is losing value right now, it may be a value play for the future. Also, any investor that buys Uber stock right now, should expect to hold the stock for a very long time. The Company may need more time to fix a lot of its issues before the stock begins to trade higher.  

Disclaimer: Investinport fund owns Uber stocks.