UBER’s Daisy-Chain Limo Insurance Scam
1) LCT Limo Convention Las Vegas: Ended yesterday. Total attendance over 3,400, the largest since 2005. A really great show, Sara and her team at LCT
and the NLA Show Committee are to be commended for a very well-planned and executed event.
2) As always, information gathered at the parties and dinners from other operators as helpful as the formal seminars. The hallways were a hotbed
of anti-UBER sentiment and gossip.
a) The insufferable arrogance of UBER CEO Travis Kalanick and his “So sue me” attitude has resulted in a cornucopia of lawsuits and complaints from one side of the country to the other. He also ripped off the wrong people in NYC with his 10x price gouging during the snowstorm.
b) UBER’s refusal to help the family of the six year old girl they killed and the family of a carjacked UBER driver has further tarnished their lackluster image.
c) Reports of Pennsylvania State Police arresting UBER drivers and towing their cars, Seattle and the State of Georgia getting ready to outlaw them and the Federal Lawsuit in Chicago are all threatening to bring down UBER’s very shaky house of cards.
d) All the above is making major investors nervous. They don’t like a tsunami of lawsuits. They may become more interested in RoI (Return of Investment) than ROI (Return on Investment). There will soon be a reverse gold rush as they grab their money and run.
3) UBER’s Incredible Limo Insurance Chutzpah:
This is an intel mosaic of
data gathered at the convention from several sources.
a) The glaring defect in UBERx, Lyft and Sidecar is that they are running for hire livery with PERSONAL AUTO INSURANCE as their primary. (Illegal in all 50 states). The surplus line policies can only activate if the primary line was commercial insurance. Essentially, THEY HAVE ABSOLUTELY NO INSURANCE.
b) Even if the Ubertarians did have good primary, their secondary line is a total BS policy, so worthless it might as well have been printed on used toilet paper.
To understand the rest of the report, look at a common practice among the Mafia:
1) If a mobster enters a smoke-filled room of his associates playing poker
with somebody, he says “This is one of my friends” and it means what is said.
If he says, “This is one of our friends”, it means the person is a made member
of the mob from another crime family.
2) Visualize the following (hypothetical) conversation between UBER CEO Travis Kalanick and Goldman Sachs (Major UBER Investor) CEO Lloyd Blankfein: “Yo, Lloyd my man, the California PUC is busting my chops on coming up with a 1.5 mil Limo Insurance Policy and I don’t have a clue where to get such an animal, what up? Lloyd replies, call xxxx xxxxxx at James River Insurance, mention my name. “He is one of our friends”.
3) Here is the ultimate Limo Insurance Scam of 2014:
a) James River specializes in Very High Risk Surplus Line policies with cheap prices and incredibly high deductibles (One million?). From their own website: “We are not afraid of unusual or high-hazard risks”
b) Guess where their home office is? BERMUDA. How convenient to be in the same place as thousands of secret offshore bank accounts.
c) Guess how many people have ACTUSALLY SEEN THE UBER POLICY? You can count them on the fingers of one hand.
d) HERE’s THE ULTIMATE KICKER: Guess who owns James River Insurance Company (JRIC). GOLDMAN SACHS! Is the picture becoming clear?
Goldman Sachs is a major Investor in UBER. GS insisted on packing the
UBER Board of Directors with transferred senior GS executives.
How convenient! Goldman Sachs owns and operates UBER and then insures themselves with a funny money offshore Insurance Company they also
happen to own. Talk about incestuous conflict of interest. Do you think the SEC might be interested in this cute little cozy arrangement?
If you are a politician or regulator just now reading this, guess what,
YOU HAVE BEEN TAKEN FOR AN INSURANCE RIDE, SUCKAS!
This is just another blatant example of the moral and ethical wasteland that is the UBER milieu. They always choose the road less traveled, and that invariably is the one that evades all laws and regulations; they admit as much on their investor blog on the UBER website.
As Ricky Ricardo used to say on the I Love Lucy Show, “Lucy (Travis K.), you got some splainin’ to do”.
Joe L. Jordan, Editor
14173 Northwest Freeway #166
Houston TX 77040
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