Uber’s Self-Defeat Device

Uber’s version of “rational self-interest” has led to further accusations of covert activity and unfair competitive behaviour. Rival ride company Lyft is suing Uber in the Californian courts, claiming that Uber used a secret software program known as “Hell” to invade the privacy of the Lyft drivers, in violation of the California Invasion of Privacy Act and Federal Wiretap Act.

This covert activity, if proven, would go way beyond normal competitive intelligence, such as that provided by firms like Slice Intelligence, which harvests and interprets receipts from consumer email. (Slice Intelligence has confirmed to the New York Times that it sells anonymized data from ride receipts from both Uber and Lyft, but declined to say who purchased this data.)

It has also transpired that Apple caught Uber cheating on the iPhone app, including fingerprinting and continuing to identify phones after the app was deleted, in contravention to App Store privacy guidelines. Uber CEO Travis Kalanick got a personal reprimand from Apple CEO Tim Cook, but the iPhone app remains on the App Store, and Uber continues to use fingerprinting worldwide.

Uber continues to be massively loss-making, and the mathematics remain unfavourable. So the critical question for the service economy is whether firms like Uber can ever become viable without turning themselves into defacto monopolies, either by political lobbying or by covert action.


Megan Rose Dickey, Uber gets sued over alleged ‘Hell’ program to track Lyft drivers (TechCrunch, 24 April 2017)

Mike Isaac, Uber’s CEO plays with fire (New York Times, 23 April 2017)

Andrew Liptak, Uber tried to fool Apple and got caught (The Verge, 23 April 2017)

Andrew Orlowski, Uber cloaked its spying and all it got from Apple was a slap on the wrist (The Register, 24 Apr 2017)

Olivia Solon and Julia Carrie Wong, Hell of a ride: even a PR powerhouse couldn’t get Uber on track (Guardian, 14 April 2017)


Related Posts

Uber Mathematics (Nov 2016) Uber Mathematics 2 (Dec 2016) Uber Mathematics 3 (Dec 2016)
Uber’s Defeat Device and Denial of Service (March 2017)

Right to Repair

One of the interesting dynamics of the service economy lies in the dialectic opposition between open and proprietary. I have mentioned some useful conceptual models in previous posts: Amin and Cohendet have proposed a model that classifies capabilities…

Inspector Sands to Platform Nine and Three Quarters

Last week was not a good one for the platform business. Uber continues to receive bad publicity on multiple fronts, as noted in my post on Uber’s Defeat Device and Denial of Service (March 2017). And on Tuesday, a fat-fingered system admin at AWS managed to take out a significant chunk of the largest platform on the planet, seriously degrading online retail in the Northern Virginia (US-EAST-1) Region. According to one estimate, performance at over half of the top internet retailers was hit by 20 percent or more, and some websites were completely down.

What have we learned from this? Yahoo Finance tells us not to worry.

“The good news: Amazon has addressed the issue, and is working to ensure nothing similar happens again. … Let’s just hope … that Amazon doesn’t experience any further issues in the near future.”

Other commentators are not so optimistic. For Computer Weekly, this incident

“highlights the risk of running critical systems in the public cloud. Even the most sophisticated cloud IT infrastructure is not infallible.”

So perhaps one lesson is not to trust platforms. Or at least not to practice wilful blindness when your chosen platform or cloud provider represents a single point of failure.

One of the myths of cloud, according to Aidan Finn,

“is that you get disaster recovery by default from your cloud vendor (such as Microsoft and Amazon). Everything in the cloud is a utility, and every utility has a price. If you want it, you need to pay for it and deploy it, and this includes a scenario in which a data center burns down and you need to recover. If you didn’t design in and deploy a disaster recovery solution, you’re as cooked as the servers in the smoky data center.”

Interestingly, Amazon itself was relatively unaffected by Tuesday’s problem. This may have been because they split their deployment across multiple geographical zones. However, as Brian Guy points out, there are significant costs involved in multi-region deployment, as well as data protection issues. He also notes that this question is not (yet) addressed by Amazon’s architectural guidelines for AWS users, known as the Well-Architected Framework.

Amazon recently added another pillar to the Well-Architected Framework, namely operational excellence. This includes such practices as performing operations with code: in other words, automating operations as much as possible. Did someone say Fat Finger?


Abel Avram, The AWS Well-Architected Framework Adds Operational Excellence (InfoQ, 25 Nov 2016)

Julie Bort, The massive AWS outage hurt 54 of the top 100 internet retailers — but not Amazon (Business Insider, 1 March 2017)

Aidan Finn, How to Avoid an AWS-Style Outage in Azure (Petri, 6 March 2017)

Brian Guy, Analysis: Rethinking cloud architecture after the outage of Amazon Web Services (GeekWire, 5 March 2017)

Daniel Howley, Why you should still trust Amazon Web Services even though it took down the internet (Yahoo Finance, 6 March 2017)

Chris Mellor, Tuesday’s AWS S3-izure exposes Amazon-sized internet bottleneck (The Register, 1 March 2017)

Shaun Nichols, Amazon S3-izure cause: Half the web vanished because an AWS bod fat-fingered a command (The Register, 2 March 2017)

Cliff Saran, AWS outage shows vulnerability of cloud disaster recovery (Computer Weekly, 6 March 2017)

In a room full of competent business professionals, what makes you stand out?

Have you ever invested the time to work out what it is about yourself that got you to where you are today? Or taken it a step further and more importantly worked out what it […]

The post In a room full of competent business professionals, what makes you stand out? appeared first on Enterprise Architects.

3rd Enterprise Design retreat

eda.c and QualiWare team up and arrange the third gathering on Strategic Enterprise Design on March 6-8 in Tel Aviv. Over the course of 3 days at the Nalaga’at Center in Jaffa Port, we will jointly shape the emerging field of Enterprise Design. In its 3rd edition after Barcelona and Iceland, our event brings together … Read more

Webinar on Design Sprints

Watch the recording On 13 December 3pm CET, Milan Guenther will give a free webinar on Design Sprints and empowering your intrapreneurs for rapid innovation. The role of a change agent in an enterprise is no easy one. Even with the right entrepreneurial spirits in your teams, politics, silos, established cultural traits and operational challenges … Read more

Reinventing IT

Watch the recording 18 Nov webinar with Milan Guenther In this first webinar of a series on Enterprise Design practice, Milan will show how to reposition architecture, analysis and design work to reclaim the driver’s seat in digital transformation. The webinar will cover these themes: Working with the QualiWare modelling environment, we will cover What the new … Read more

Single Point of Failure (Comms)

Large business-critical systems can be brought down by power failure. My previous post looked at Airlines. This time we turn our attention to Telecommunications.

If someone said you had to accept an unreliable electricity supply as the price of innovation in appliances, you’d laugh. #NotNeutrality

— Martin Geddes (@martingeddes) August 8, 2016

More misery for BT broadband users after new power cut. Looks like ‘no single point of failure’ is an alien concept. https://t.co/mOobFidWe4

— Chris Tripp (@ChrisJTripp) July 21, 2016

It would be interesting to know where the single point of failure was in their power protection plan. https://t.co/zuaTm1z4tK

— Robin Koffler MBA (@robin_koffler) July 21, 2016

2G and 3G data services from @EE are down after a power outage. Details: https://t.co/zEJFpgpl4n pic.twitter.com/vcUOkPVtet

— The Register (@TheRegister) September 2, 2016

Obviously a power cut is not the only possible cause of business problems. Another single-point of failure could be a single rogue employee.

That shows that management should look at automating network. Since Network is single point of failure. https://t.co/ND5UXtNntj

— Anurag Kaushik (@kaushikanuk) August 3, 2016


Gavin Clarke, Telecity’s engineers to spend SECOND night fixing web hub power outage (The Register, 18 November 2015)

Related Post: Single Point of Failure (Airlines) (August 2016)