demonstrations, and condemnation. ETHICAL CONSIDERATIONS UBER Canada's taxi industry regulations, gener- Uber, headquartered in San Francisco, is interna- ally set by municipalities across the country, tionally known for its ride-booking and ride- are strict and costly to fulfill. The commend- sharing application (or app) for smartphones. able goal of these regulations is to protect the Uber forms part of what is called the disruptive, public interest and, as part of that mandate, sharing economy because it permits people to regulators enact rules which impose insurance "bypass traditional businesses"-in this case, the requirements (so as to protect the customer taxi cab industry-and "to rent or buy from one and others should the cab be in an accident) as another instead."45 well as taxi price levels, vehicle safety stan- dards, and minimum service requirements." 43 See, for example, Robert Sexty, Canadian Business and Society Ethics and Responsibility. 3d ed (Whitby. ON; McGraw-Hill Ryerson, 2013), Robert Larmer, Ethics in the Workplace. Selected Readings in Business Ethics. 2d ed (Belmont, CA. Wadsworth Thomson Learning, 2002), 44 These vantage points are derived from the work of Larmer, ibid. 45 Sunil Johal 6 Noah Zon, Policy Making for the Sharing Economy (Toronto: Mowat Centre, 2015) at 6, online: chtips://mowatcentre.ca/wp. ./106_policymaking_for_the_sharing_economy.pdf> 46 Competition Bureau Canada, Modernizing Regulation in the Canadian Tax Industry (Ottawa Competition Bureau of Canada, 2015) at 1-2 NEL CHAPTER 1: KNOWLEDGE OF LAW AS A BUSINESS ASSET 15There are also limits on the number of cabs phenomenal popularity-the company claims permitted on the road through taxi licences 40 million active users a month worldwide. $1 (also known as plates or medallions)" which a When Uber began operating in Toronto, the cab must have to legally operate. While prices City pushed back against Uber's position that it have dropped recently, plates at their peak in was not bound by rules governing the cab indus- Toronto could run up to $360 000.4 try. Tracey Cook, executive director of Municipal Uber's business model is constructed on Licensing and Standards for Toronto, stated at a Uber's claim that taxi regulations do not apply to 2014 press conference that Uber was operating it because it is not a cab company but a transpor "without lawful authority" and that its unregu- tation service company which simply connects lated status potentially endangered the public.52 passengers to drivers." This helps to drive down In this regard, she referenced allegations of lack costs since, for example, Uber operators do not of driver training, inadequate insurance, and incur the significant costs of a taxi plate.50 And price gouging due to its unregulated fare lower costs have, of course, contributed to Uber's structure.53 Uber's approach to the Toronto market was seemingly brash: enter the market and then openly operate "outside the law" while hoping to Public Safety force a regulatory change." This is called regula- Priority STOP BANDIT CABS tory arbitrage and is described by law professor Brishen Rogers in this way: You follow some rules and try to skirt around "UBER is operating some others and you break some others. And outside the LAW" John Tory, Sept 30, 2015 you know, Uber's calculation, and I have to sort Toronto-Images Com/Shutterstock.com of admire their chutzpah in some ways, is simply that their product is good enough that some- times if they break the rules they'll be able to change the rules, because the consumers will want them to be in the city so badly. And that A protest by taxi drivers against Uber has happened.55PAR TOARS It would appear that Uber's gambit is produc- into such allegations led by former U.S. Attorney ing results. This is because the City of Toronto General Eric Holder. The report was critical of has rolled out Uber-friendly regulations. Accord- Uber's corporate culture and included a recom- ing to Sunil Johal, mendation that Uber "reformulate its written UberX drivers will now be required to file docu- cultural values because it is vital that they mentation, such as criminal record checks and reflect more positive and inclusive behaviours."$1 insurance certificates, directly with the city Under this recommendation, the report rather than with Uber as had been the case pre- included a statement that Uber "eliminate those viously, and obtain a city licence. But Uber driv- values which have . . . been used to justify poor ers won't be required to have cameras in their behavior" including values represented by the car, undertake training courses or have rates following slogans: "Let Builders Build, Always regulated by the city (other than a small change to the base fare). $6 Be Hustlin', Meritocracy and Toe-Stepping, and Principled Confrontation . . . ." On a There are also new rules that have relaxed related front, a European commentator has somewhat the regulation of taxis.$7 observed upon Uber's failure to present itself Though other cities will likely follow suit and "in a stable and socially responsible way." In permit Uber to operate according to a restructured light of these and other serious matters, Uber's set of rules, Uber's problems are not behind it. founder and CEO, Travis Kalanick, was replaced According to Chris Mills, "Despite a $60 billion in August of 2017. valuation, Uber has yet to turn a cent of profit, it's lacking any senior leadership, [and] cash is Critical Analysis: Uber's business model of being burned through at an alarming rate ...."$ refusing to follow rules governing the taxi indus- As well, Uber has been accused of fostering a try has been described as either "disruptive or toxic work environment, including sexual illegal, depending whom you ask." Which view harassment and discrimination,$ homophobia, do you hold and why? Is it an acceptable business as well as threats of violence and sexual assault practice to break the law? What are the ethical in the workplace.60 In June of 2017, Uber considerations of doing so and how might this released the results of an internal investigation impact on or reflect corporate culture