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YouTube • 12h
one of the wildest tech rivalries ever Uber vs Lyft and Uber’s secret program called “Hell” Uber spy on Lyft drivers for over a year. It ended in lawsuits, CEO resignations, and a whole lot of drama. Here’s the full story 🧵👇 In 2014, Uber and Lyft were in a war for the ride-sharing market. Whoever had more drivers = faster pickups = more riders. So both companies were trying hard to recruit and keep drivers. It was intense. And messy. Uber wanted to stay ahead at any cost. That’s when Uber allegedly created a secret program called “Hell.” It was named to poke fun at Lyft’s internal dashboard, which they reportedly called “Heaven.” But this wasn’t just about fun. It was serious business. And kind of shady. Here’s how Hell worked (in simple terms): Uber created fake Lyft rider accounts It opened the Lyft app from multiple phones It saw where Lyft drivers were located in real time It did this over and over, mapping out Lyft’s entire network Uber could now track when, where, and which Lyft drivers were working. But it didn’t stop there. Uber used this data to see which drivers worked for both Uber and Lyft. Then it targeted those drivers with better bonuses and offers — to convince them to drive more for Uber, and less (or never) for Lyft. This went on secretly for over a year, between 2014 and 2016. Only a small number of Uber engineers and execs knew about Hell. It wasn’t public. Even most of Uber’s employees didn’t know. Until 2017. In April 2017, tech site The Information exposed Hell to the world. People were shocked. Uber was already under fire for other scandals, and this just made things worse. Lyft didn’t share everything publicly, but they weren’t quiet either. Later in 2017, Lyft sued Uber, saying it had: – Gained unfair access to confidential info – Used that data to damage Lyft’s business – Engaged in anti-competitive behavior It was a major federal lawsuit. Uber pushed back. Their lawyers said Lyft hadn’t proven real harm, and tried to get the case dismissed. The legal battle dragged on for 2 years. Finally, in 2019, Uber settled the case but the terms were kept secret. No one knows how much money was paid (if any). But even without jail time or fines, the fallout was huge. The Hell program became yet another scandal for Uber, which was already dealing with: – Toxic workplace culture – Legal issues – Internal chaos The company was in deep trouble. By mid-2017, pressure grew on CEO Travis Kalanick. He had already faced criticism for how Uber was being run. After Hell, investors and board members had enough. In June 2017, Kalanick resigned as CEO. Uber brought in a new CEO Dara Khosrowshahi — who promised to clean things up. He worked to change Uber’s culture, fix its public image, and distance the company from its “win at all costs” past. But the Hell scandal stuck. It became a symbol of how messy and ruthless Silicon Valley could get.
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