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Uber?s ability to drive off negative publicity crucial to its growth


Marriott International, Capital One and Samsung are just a few of the brands in a range of industries that have partnered with Uber, even as it generates controversy with its leveraging of mobile to transform local transport services worldwide, from taxis to carpools to fast-food delivery. Setbacks for the company after lawmakers in several countries took steps to ban it have raised questions about the degree to which Uber can remain a viable marketing partner, crucial to its growth aspirations.

?While some may be hesitant to partner with Uber amid its battle with car service companies and unions, those partners need to consider who that negative sentiment is coming from,? said Shuli Lowy, marketing director for mobile with PingMobile.

?If that negative sentiment is coming from their target audience then that may be a reason for concern. But if the majority of their customers are using Uber and are happy that cab riding has seen a burst of innovation, then that shouldn?t deter them from moving forward with partnerships,? she said. 

Uber, San Francisco, did not respond to media inquiries.

Order and pay
The city council of Sao Paulo, South America's largest metropolis, recently voted to ban Uber, which allows users to order and pay for ride service via smartphone, and other application-based private car services. A German court banned Uber from running services using unlicensed cab drivers and set stiff fines for any violations of local transport laws by the firm. 

Uber also has received negative publicity due to protests by drivers who complain that costs drive earnings down to $3 to $4 per hour, far from the $90,000 a year they were promised.
Illustrating the consequences of innovation.

The company also has had its image hurt by a man in San Francisco who claimed an Uber driver attacked him with a hammer, causing serious injury. In another case, a woman claimed she was raped by an Uber driver even though Uber said the man was not working for Uber at the time of the rape.

Uber also has been accused by the Electronic Privacy Information Center of misleading customers about how it uses their contact lists, location data and personal information.

?These are serious issues, but ones that can be fixed with investment and attention,? Ms. Lowy said. ?Partners can put pressure on Uber to speed this up and should limit what information they hand over to Uber until they are comfortable with the company?s privacy practices.

?The company just needs to make it an immediate priority and develop a program to put their users? concerns at rest,? she said. 

Uber could increase its screening of prospective drivers and add safety features within the app to ensure passengers are always safe, Ms. Lowy said. It also could create internal training programs to ensure employees respect user privacy and develop technical features to limit employee access to information to ensure privacy is maintained. 

Uber?s key value to brands is its ability to satisfy customers? mobile-accelerated demand for convenience.

Uber tie-up with LiveNation.

For instance, its tie-up with Resy lets consumers book a primetime table at a New York restaurant and then order and pay for taxi transportation via smartphone ? reducing the process of booking a reservation and getting to the restaurant to just five screen taps.

Hyatt Hotels? integration of its mobile application with the Uber app makes it easier for guests to get from their current location to their hotel. Starwood Hotels and Resorts? Uber partnership lets preferred guests earn rewards points with each ride.

Uber's growth is tied to the sustainability of its partnerships.

?Undoubtedly the company will find resistance in each location and nobody can guarantee that it will win in its battle everywhere,? Ms. Lowy said. ?But the company has gained enough traction to justify moving forward and trying to work towards broader adoption.?

The Uber controversy is a lesson in how while innovation can dramatically improve quality of life and create jobs and opportunity, it also brings casualties. Case studies on companies such as Blockbuster and RIM, which underwent major falls from glory, speak to the risk industries take by failing to innovate. 

Wild ride
While brands cannot afford to stay on the sidelines as the Uber juggernaut steams forward, they have to prepare for a wild ride because of the legislative controversy.

Starwood Hotels and Resorts is an Uber partner.

"Uber has an excellent technological platform that is well suited for expansion into other services,? said Joseph Schweiterman, director of the Chaddick Institute at DePaul University in Chicago. ?It seems inevitable that hotels and other travel options will soon be part of the mix.

"The loyalty of users of the Uber app makes it a potential gold mine for other travel services," he said.

Final Take
Michael Barris is staff reporter on Mobile Marketer, New York