Displaying items by tag: Concerns
Uber’s new CEO has jetted into London for negotiations with the city’s transport regulator following the TFL’s (Transport for London) decision to suspend the license of the global ride-hailing service. The TFL deemed Uber unfit to run a taxi service and refused to renew its license.
The decision by the TFL left Uber reeling, as the UK, and in particular London is a massive market for the US firm. It was the latest setback in a long line of controversies and blows endured by Uber who have in recent months had allegations of sexual harassment within its work environment labelled at them.
In addition to this, Uber has faced countless legal battles in different markets all over the world – and pressure from stakeholders forced former CEO and founder Travis Kalanick to resign. TFL stated that it didn’t renew Uber’s license due to the firm’s approach to reporting serious criminal offences – and also highlighted safety issues in relation to Uber’s vetting process on its drivers.
London’s Mayor Sadiq Khan, who is also chairman of the TFL, told Uber that it would serve the organization better to actually attempt to address the concerns raised by the transport regulator, instead of hiring a team of PR experts and lawyers.
However, it has emerged that Uber’s new CEO, former Expedia boss Dara Khosrowshahi has arranged a face-to-face meeting with TFL commissioner Mike Brown who is tasked with the responsibility of running TFL’s day-to-day operations. It was further disclosed that Khan, a member of the Labor Party had sanctioned the meeting.
While Uber’s license was suspended with immediate effect on September 30th, its 40,000 drivers can still pick up fares until an appeal process has been exhausted, and that is likely to take up to several months.
Uber’s CEO facing a tough task to restore order to a firm which has been battered by a host of controversies, and his job hasn’t been helped by the calling of a board meeting in San Francisco which will look at curbing the influence of former CEO Kalanick.
Many expect Uber to resolve the issue with the TFL and claimed that Khosrowshahi made a good start by penning an open letter to Londoners in which he acknowledged that the company had made mistakes, before vowing to adopt a new approach to penetrate new markets globally.
It has been reported that Uber will learn its fate when a judge will rule on its appeal when it is officially submitted on October 13th. Uber’s competitors have wasted no time in attempting to gain its business. London’s second-biggest private hire firm Addison Lee said on Friday it was planning to increase its driver numbers in London by up to a quarter.
The White House has intervened in a business transaction between a Chinese-backed private equity firm and a US chipmaker. US President Donald Trump has blocked Canyon Bridge Capital Partners planned $1.3 billion acquisition of Lattice Semiconductor Corp. The decision has sent a clear message to Beijing that Washington will vehemently oppose any takeover deals that involve technologies that may have potential military applications. The bid by the Chinese-backed equity company was one of the largest ever attempted on the US microchip sector.
US regulators became more focused on the business activities Canyon Bridge were engaging in when it emerged that the firm was largely funded by capital from China’s central government and had indirect links to its space program. In addition to this, Canyon Bridge came across the radar of US defense officials when it became clear that company behind the Lattice acquisition bid was backed by the Chinese government – and this subsequently sparked severe security concerns.
Lattice Semiconductor Corp is headquartered in Oregon and makes chips known as field-programmable gate arrays, which enables companies to put their own software on silicon chips for different uses. The company publicly stated that it didn’t sell its chips to the US military anymore, unlike its two biggest competitors, Xilinx and Intel’s Altera.
It has been reported that President Trump stated in an executive order that Lattice and the Chinese-backed private equity firm shall take all steps necessary to fully and permanently abandon the proposed transaction within 30 days. Trump’s decision echoes the sentiments of the Committee on Foreign Investment in the US (CFIUS), which is a body that scrutinizes deals for potential national security threats.
US Treasury Secretary, Steven Mnuchin issued a statement confirming that both the CFIUS and the President have assessed that the transaction between the two companies pose a risk to the national security of the United States, and furthermore can’t be resolved through mitigation. The US Treasury Secretary did highlight that the risk of national security was related to the potential transfer of intellectual property and the Chinese government’s direct involvement in the deal.
However, China has expressed their disappointment and concern regarding the decision made by the US President and the US Committee on Foreign Investment. Chinese Commerce Ministry spokesman Gao Feng said he respected the US was fully in within its rights to examine the security implications surrounding potential foreign investment, but he was disappointed by how the US had conducted itself during its investigation.
He said, “We believe conducting security examinations of investments in sensitive sectors is a country’s legitimate right, but it should not become a tool for advancing protectionism and we hoped that the United States could view Chinese firms’ acquisitions objectively and provide fair treatment to what was their “normal commercial behavior”. Lattice and Canyon Bridge released a joint statement on Wednesday declaring that they had terminated the proposed deal. Lattice also said it is committed to achieving profitable growth.
US electronic giants Apple have shrugged off safety concerns over its iPhones following reports that a number of phones spontaneously combusted while being used or charged. It is reported that in one incident an iPhone actually exploded which left the back of the phone and battery completely blackened.
A consumer watchdog in Shanghai disclosed details of at least eight incidents which have been reported in relation to iPhones catching fire, combusting or exploding in China. However, Apple dismissed safety concerns over its products and blamed external damage for the flaming iPhones.
Apple’s problems have emerged hot on the heels of Samsung’s disastrous worldwide Galaxy Note 7 safety fiasco in which it was forced to recall 2.5 million units of the phone due to serious issues and concern following reports of it catching fire. Apple firmly declared that safety is treated as a top priority for the company, but insisted that following analysis and tests on the iPhones they found no concern with the products.
In statement a spokesman for Apple said, "The units we've analysed so far have clearly shown that external physical damage happened to them which led to the thermal event. We treat safety as a top priority and have found no cause for concern with these products."
Apple also vehemently denied in accusations that it was very slow to respond to the issues raised, after the state-run Shanghai Consumer Council had reportedly urged it to address consumer complaints immediately.The watchdog's report quoted one woman as saying her iPhone 6s exploded in August, shattering the screen and leaving the battery and back of the phone blackened.
The council said it had received a six-fold surge in total complaints against Apple in the past two months, including sudden shutdowns of the iPhone6 and 6s even though batteries still had enough power.The council did not say where the complaining iPhone users were located. Apple last month offered to change iPhone 6s batteries for Chinese users who complained of the sudden shutdowns, but said the problem did not constitute a safety issue.