Companies Use Politics To Take Out Competition

Companies Use Politics To Take Out Competition

Uber Chief Executive Officer Travis Kalanick decided to step down from his position in president Donald Trump’s business advisory council. His decision comes after many customers and Uber drivers harshly criticized him for this. The fact that Kalanick was part of the council, along with some other U.S. executives stared a wave of controversy and criticism on social media platforms after Trump issued the “Muslim ban”.

An Anti-Uber campaign

The whole situation quickly became an entire Internet campaign called “#DeleteUber”. Many customers deleted the app from their phones and refused to use the service anymore. This was extremely beneficial for Lyft, Uber’s main rival. The company’s CEO announced in an e-mail destined for his employees that he is giving up on the position in the business advisory council. According to him, he spoke on Thursday with president Trump about the whole issue with the “Muslim ban”. After that, Kalanick reportedly announced the president that he would no longer be part of his team.

Donald Trump’s Strategic and Policy Forum includes important companies which are going to help him with guidance and advices from a wide range of industries regarding business and economic problems. Among those companies are General Motors, Walt Disney, IBM and Tesla. The only issue here is that the companies have started to have issues with their customers, all because of Trump’s recent decisions which have enraged an entire nation. Even their own employees requested the companies to leave Trump’s forum.

Companies face criticism

However, Uber was not the only company who faced criticism from customers, but those have been the loudest of them all. Tesla CEO, Elon Musk, confronted the same situation. The fact that Uber’s CEO allied with Trump’s team was unusual for everyone who knows that Kalanick has always been a somewhat combative individual. He spent years fighting some governments in the entire world.

This week, at least 200,000 people deleted the Uber app from their phones. It all happened after a Taxi protest over Trump’s immigration ban, which took place last weekend in New York. Uber chose to shut down its surge pricing option. Their idea was to not have people making profit from the situation, but the customers understood it differently. According to them, Uber was only trying to break the strike. The move cause an entire social media storm full of critics for Uber. Many people ended up deleting their apps.

The only one favored by this situation was Lyft, Uber’s main rival. They took some right steps, among which were the promise of $1 million to the American Civil Liberties Union over a period of four years. Apart from that, the company released a strong statement against Trump’s “Muslim ban”. So, it seems like where Uber handled things the wrong way, Lyft took the best steps. According to statistics, on January 30, Lyft surged to the top of the Apple’s app store, right at number seven. It even surpassed Uber. However, since then, it has fallen behind again, below Uber. We will see if Trump decides to replace Kalanick with somebody else or if the council will still do well without him.

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