uber ethical issues 2020

Ed Baker, Vice President of Product, resigned after he was reported making out with another staffer, and the company’s CEO, Jeff Jones, resigned after six months because his values did not match with Uber’s culture (Bhuiyan, 2017). “Trademark” is another way to refer to a brand. Fowler told him that his behavior was clearly out of line. The earliest adjustments occurred in 1935 when the U.S Supreme Court announced that employees could not be terminated as punishment for attempting to organize into unions.Federal statutes included clauses that compensated whistleblowers punished for reporting misconduct to authorities (Halbert, 2015). Besides the Fowler sexual harassment case, many top executives either resigned or quit in response to these scandals. Uber lacks ethical leadership. Retrieved from https://www.uber.com/ride/safety/, Uber. The authorities have begun charging Uber drivers access fees to drop-off and pick-up customers at the airport. The access fees increase the cost of a ride for consumers, making the service less competitive when compared to traditional taxis.Â. While this may seem like a fair trade off, changing pay rates keep Drivers on the road longer.   In a poll taken by NPR, 79 Drivers said they have driven 14-hour shifts or longer, and three people showed documentation for driving 20 hours in one day. Ride share companies maintain they have no control over the Drivers or their cars and “merely control the application that facilitates the connection between passenger and Drivers, and thus are not liable for the negligence of the driver (Gallegos, 2014).”. Investopedia requires writers to use primary sources to support their work. It is important to diversify the workplace because individuals come from different walks of life and have special qualities that can enrich the company’s culture. Merriam-Webster. They are independent contractors. Uber maintains that it is a technology company and that its sole function is to connect drivers and passengers. This works out well for the company–it can start operating in new markets easily and doesn't need to concern itself with employer-employee laws and the related responsibilities and obligations. In light of this, Uber has patented a method that imposes surge prices during peak time. J. Since Uber’s biggest competitor, Ola, had home field advantage in India’s ride share market, Uber had to come up with a creative strategy to gain market share. When attempting to break into the Indian ridesharing market, Uber first approached influential Indian officials. As Uber entered unique regional markets around the world – from New York to Shanghai, it has adapted its business model to comply with regulations and compete locally. Accessed April 18, 2020. The public is more inclined to support companies that attempts to moderate climate change. But according to George Green, writer for Insurance Coverage Corner, insurance coverage depends on who is liable- the company or the Driver. However, if an individual uses Uber as both a User and a Driver, the privacy statements apply (Uber, 2015). During this period, the appropriate marketing mix must be determined. In her article, 7 Reasons Why Trademarks Are Important to Your Business, Abigail Rubinstein explains why trademarks are an important asset that can grow your business (Rubinstein, 2014). Accessed April 18, 2020. Drivers can set their own hours, but according to David McKee, a Driver from Vista, California, in order to make enough money, you would have to work peak hours- morning rush hour or weekend nights (Shahani, 2017). In March of 2017, Uber published its diversity numbers for the first time since its conception in 2009. You can learn more about the standards we follow in producing accurate, unbiased content in our. 7 Reasons Why Trademarks Are Important to Your Business. A possible explanation is that Uber believed that since they had deactivated Drivers who were charged with criminal acts and assisted police investigations, they absolved these grievances. But Uber is struggling to attain profitability. Verge. Uber. San Francisco-based tech company Uber was founded in 2009 as a way to connect people in the city who needed rides (but couldn't find taxis) with limousine and town car drivers who wanted to make extra money. The company went public in May 2019 and the stock trades under the ticker symbol UBER. , Today, Uber connects drivers and passengers in 400 cities worldwide and its drivers include, not just professionals, but also average people willing to drive strangers around for a fee. The company launched its UberEats food-delivery app in 2014 and a helicopter taxi-service to JFK airport in New York City in 2019. , Uber has seen a number of competitors, such as Lyft and Via, spring up in the ride-sharing business and the company has faced regulatory issues worldwide. Uber’s campaign to make Uber trips as safe as possible and advocacy for women’s rights, portrays an image of a “reliable and progressive company (Ramsenthaler, 2016). Kalanick needs to set an example, and not simply grow his empire. A. We had also instituted a 24/7 support line so that any employee can feel safe reporting unprofessional behavior (Uber, 2017).”, On February 19, 2017, Sam Levin wrote an article outlining sexual harassment claims made by Susan Fowler. AB2267 modified them and Prop. Trademarks will not expire as long as they are used in United States Commerce (Rubenstein, 2014). In addition to this, Ponce served six months in jail and was required to register as a sex offender. Because Uber is more trendy than cabs and public transportation, millennials and business professionals especially enjoy Uber’s services. Ola is still the leading transportation network in India partially due to their substantial marketing budget, but according to Peter Ramenthaler, do not count Uber out. The purpose of this paper is to provide an in-depth case study of Uber based on legal and ethical principles in relation to Uber’s internal and external affairs. NPR. Retrieved from https://www.entrepreneur.com/article/23588, Shahani. White and Asian employees comprise a whopping 80 percent. Trademarks also appreciate over time, making it a valuable asset as the business’s reputation grows. Accessed April 18, 2020. The headlines of the ride sharing industry are so consumed with consumer safety and price gouging that it overlooked that Uber Drivers forgo bathroom breaks in order to keep up with intense demand. The use of God View was not monitored and since the application was authorized for “legitimate” business purposes, a strong foundation for misuse was established. Individuals who use UberPool only submit their name and credit card information so users maintain their privacy. (1828). At this point, Uber has taken over the ride-sharing sector, but it will be interesting to see if their occasional ethical faux pas cause them to lose trust from their consumers. With a population of 39 million, California is a huge market for Uber. In addition, the new, legal precedent suggests drivers in other states will likely wage their own court battles against the company.Â. Since Uber Drivers are considered independent drivers, their breaks may come at the cost of losing a pick-up request at a peak time (McHugh, 2016). Accessed April 19, 2020. To further capitalize on this opportunity, Uber has created a department for Public Policy Associate in Sustainability and Environment Impact (Fischer, 2016). E. (2016). RideSharingDriver. Of Uber’s 12,000 employees, less than 40 percent are women, and Black and Hispanics account for only 15 percent of the workforce. Uber caters everyone from millennials to the elderly and in between. The UCLA Rape Treatment Center was able to link Walter Alberto Ponce to the assault. Cab and truck drivers are protected by unions and are required to take mandatory breaks. This law is known as the Sarbanes-Oxley Act and it strengthened and expanded employee protection in the wake of the housing crash and economic downturn that occurred from 2007 to 2009 (Halbert, 2015). A. "California." VAT Registration No: 842417633. If demand for Uber was so low that there is a glut of drivers unable to take rides, then prices would fall. (2015). Technology and Operations Management. "Uber Reports First Quarter 2019 Results." Drivers are completely liable for any damage and injury caused while transporting riders. If Apple users choose to “Never” share their location, they have to manually enter their pick-up address. While Lyft is doing better than Uber in terms of gender diversity, the difference is slight. Uber seems to have grasped the latter, it is having difficulty with the former. From being banned at airports (and entire countries) to increasing costs of operation, Uber has four challenges on its hands in America and abroad.Â, The California Senate passed Assembly Bill 5 in 2019 and the rule would require Uber, Lyft, and other companies to treat workers as employees rather than independent contractors. Although the bill is expected to become law, Uber's top attorney said in response that the company would not begin treating drivers as employees despite the legislation.Â. Indian marketing blogger, Prateek Malpani, analyzes Uber’s five phases of successful and effective market entry (Ramsenthaler, 2016). Uber already faces complaints from various governments that it shirks its tax liabilities onto its drivers and that the drivers are often non-compliant about paying their taxes. More tax legislation could exacerbate the problem and will also mean either an increase in ride fares or the end of Uber operations in that particular city or state. Both companies have a lot of work to do (Hawkins, 2017). Uber reserves the right to collect personal information about its users when they create an account or use their services. Uber. In the past year, Uber only hired 3 percent more Black employees and 2 percent more Hispanic employees. Latinas and Blacks do not hold leadership positions (Hawkins, 2017). "Uber announces pricing of initial public offering." (2015). At Uber, 5% of managers – 84 out of 1,704 – are Black. Retrieved from http://www.npr.org/sections/alltechconsidered/2017/06/09/531642304/the-faceless-boss-a-look-into-the-uber-driver-workplace, Stereotype. When asked about the declining numbers, the director said the female engineers were not good enough (Levin, 2017). These partnerships included Capital One, Starwood Hotels, and Spotify (Fisher, 2016). These officials were able to test drive Uber’s services before posting about it on their social media channels. While Uber says they are environmentally friendly when compared to other ride share companies, Uber does not have the complications that come with industries that produce waste and large amounts of emissions from a physical plant. A blog written by Susan Fowler, a former engineer at Uber, detailed her sexual harassment experience that was initiated by her manager. "German court bans Uber's ride-hailing services in Germany." It must be set at an attractive price that will encourage customers to purchase the offerings. What is UberPOOL? T. (2015). Otherwise, customers will not want or need it. Were there more rigorous background checks, or an in-person interview, even if someone had a clean background, it would act as a deterrent against certain behaviors (Lein, 2016).”. While this is what they officially say, they reward Drivers for doing the opposite. At will employees cannot be fired for reasons illegal under the state or federal law. Uber’s unconventional marketing approach, while unorthodox, was able to successfully establish its brand in India without the use of mass marketing. UBER has been subjected to many law suits and ethical issues. "Introducing Uber Copter." Internal Revenue Service. (2016). These include race, religion, or gender. Uber’s entrance into this market was impressive. Uber’s Marketing Strategy in 7 Steps, Without the Bad Press. Accessed April 18, 2020. California's AB5 set rules for gig workers and firms hiring them. This detailed report prompted Uber’s CEO, Travis Kalanick, to announce an urgent investigation. Annex Cloud. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKDiss.com. Taxi and rickshaw transportation is essential for local professionals so Uber launched The Office Hero campaign that granted discounted and/or free rides to customers who referred a friend. This does seem to be working now, but Ogurchak suggests filing for protection for a “more substantive invention” because these patents are less likely to be invalidated or “maintain its intellectual property as a trade secret (Ogurchak, 2016).”, Uber has a design patent to protect its user interfaces. The company lost around $8.5bn in 2019. Despite being the largest ride-sharing firm in the world, Uber has consistently failed to make a profit since its inception. Uber can’t be ethical – its business model won’t allow it October 4, 2017 5.34am EDT. Accessed April 18, 2020. Daniels Fund Ethics Initiative. Customers share their ride with strangers and split the cost. Uber and Lyft’s Drivers are not employees. Accessed April 18, 2020. Boston) due to this – as a result of the lower costs, demand went up. Quora Contributor Opinions expressed by Forbes Contributors are their own. With this update came a request to collect location data up to five minutes after the rider’s trip ended and when the application is running in the background of a smartphone. "NYC Payment." Anna. Since this can be approached in many ways, the possibilities are endless. "Independent Contractor (Self-Employed) or Employee?" A marketing strategy is a tool used to meet the needs and requirements of customers with clear and specific objectives. For 2020, Uber’s material ESG issues include our response to the COVID-19 pandemic; the well-being of the drivers and delivery people who use our platform for work; safety in both the physical and digital worlds; diversity, inclusion, and culture; data privacy; impacts to the communities we serve; and climate change. Furthermore, taxi service in Asia is fast, clean, cheap and, in some countries, can be paid for via NFC cell phones—negating Uber's competitive advantage of being able to pay for a ride with its app. Recode. Among the challenges Uber faces are laws in California that require ride-sharing companies to treat drivers as employees rather than independent contractors. Uber. J. "LA: The New UberEATS App is Arriving Now." And he said he thinks Khosrowshahi can still polish Uber… Author. Another incident occurred in 2014 when Josh Mohrer, the general manager of Uber New York, emailed Johanna Bhuiyan’s, a BuzzFeed journalist, logs of some of her Uber trips; he had not asked her permission (Bhuiyan, 2014). Uber classifies its full-time and part-time employees as independent contractors, not employees. There are several techniques and tools that can develop a marketing plan tailored to the company. Uber. Uber. C. (2014). This may violate the Driver’s privacy because they are tracked on their personal phones, but Uber counters that tracking keeps Drivers accountable for safety, and protect them against unfair complaints from riders. Retrieved from http://money.cnn.com./2016/08/11/technology/uber-lawsuits/index.html, Kroninger. Uber. Several law suits were filed claiming that ride share companies were “deceptive and unsafe for customers” (Gallegos, 2014). Two problems: Uber has made a stink about potential privacy issues before, even when cities have asked for much less precise data, because it … "Celebrating Cities: A New Look and Feel for Uber." In Asia, for example, the ratio of taxis to population are higher than in America. A peer-to-peer economy is a decentralized model whereby two parties interact to buy or sell directly with each other, without an intermediary third-party. We also reference original research from other reputable publishers where appropriate. Multitasking Drivers. As a result, Ponce was charged with a rape of an unconscious person and assault with intent to commit rape. He pointed to the hiring of Uber's first-ever chief compliance officer and ethics officer as one example. Retrieved from https://rctom.hbs.org/submission/uber-climate-change-hero-or-villain/, Fisher. 22 exempted app-based drivers and companies. An earnings withholding order is a court order allowing an organization to garnish wages from one of their members or employees. Uber’s strategy is to use utility patents to protect its intellectual property. Disclaimer: This work has been submitted by a student. There are several reported cases when Drivers opted out of relieving themselves during peak times to make more money (McHugh, 2016). Marmind. This man eventually left the company, but when she tried to transfer to a different team, Fowler was blocked although she met the qualifications. 2016 was a rough for Uber, but there are positives. When signed, Uber is absolved from all liability, claims, or damages that occur while using Uber Services. Now, Uber users are forced to choose between “Never” and “Always”. The goods must be presented at the right place and at the right time. These terms and conditions are necessary to protect the company if a Driver or agent become liable, or if there is a disputed claim. Uber’s motto: Be Your Own Boss has been effective in gaining more Drivers. In an effort to offer more environmentally friendly services, Uber introduced UberPool, an option that allows riders to share an Uber car with others who are going to a similar destination. Retrieved from https://www.theverge.com/2017/6/1/15725676/lyfts-diversity-report-ethnicity-gender-silicon-valley, Inclusion. Uber says they were mentioned in the top 100 Human Rights Campaign’s Corporate Equality Index. The Faceless Boss: A Look Into the Uber Driver Workplace. Uber. The Merriam-Webster dictionary defines inclusion as “a relation between two classes that exists when all members of the first are also members of the second (Inclusion, 1828).” Uber’s official diversity page encourages Black and Asian diversity, women’s inclusion, Hispanic and Latinos, veterans, support the LGBT community, and celebrates Jewish heritage and faith. Murray Goulden, University of Nottingham. According to Heather Kelly, a writer for CNN, in May a judge ruled that Uber could be held responsible for their Drivers behavior even though there are independent contractors. With a history like this, no wonder customers are hesitant about trusting Uber to honor the “five-minute” agreement that comes with this new update. Retrieved from https://www.merriam-webster.com/dictionary/stereotype, Trip Safety. The price per mile in Los Angeles is 5 cents cheaper. Uber’s biggest problems are internal, but it does not have long to set those issues straight. Hawkins. (2017). We've received widespread press coverage since 2003, Your UKDiss.com purchase is secure and we're rated 4.4/5 on Reviews.io. These numbers do not include drivers who have been accused of mistreating female and black customers. Uber. Nearly 7% of management roles – 51 out of 755 – at Lyft are held by Hispanics or Latinos, compared with 5.5% at Uber. Drivers are free to take bathroom breaks when needed, but they have to clock out. The fourth and fifth phase focused on the long-term success of their venture. Retrieved from https://theringer.com/brake-for-bathroom-breaks-f65cf6d68aad, Ogurchak. Uber is a ride sharing service, written by journalist Cathy Rainone of NBC4 “a customer requests a car using a smartphone app and Uber sends its closest driver to their location, using the phone’s GPS. The next challenge that Uber faces relates to the employer-employee relationship. This has caused customers turn to alternatives such as Lyft and SideCar (Ogurchak, 2016). This incident could be considered an irregular occurrence, but this was not the first case of this nature. Los Angeles Times. In doing this, Uber maximized their intellectual property protection and increased brand awareness. There was another case in March that accused a Driver of attacking a female passenger who was picked up from a bar (Lein, 2016). “God View”: Uber Investigates Its Top New Your Executive for Privacy Violations. Uber: An Unethical Company. This information is retrieved by Uber’s service providers, for marketing, analytics, industry, market research, and by Uber for any legitimate business needs (Uber, 2015). "Airport Fees." When Fowler first joined, her organization was 25% female; by the time she tried to transfer to another team, the female demographic had dropped to 6%. No plagiarism, guaranteed! With more reliable and cheaper service than in America, it seems unlikely that there is a strong market for Uber abroad. ... this wildly popular car-sharing service had raised several disturbing ethical issues: 1. This can lead to expansion into other industries or new acquisitions. After talking to more female engineers in the company, Fowler found out that some of the ladies had reported inappropriate interactions with the same manager before she worked at Uber. The first stage is marketing research which occurs before any marketing activity. Retrieved from https://danielsethics.mgt.unm.edu/pdf/uber.pdf, Uber (2017). Dissertation Company Registration No: 4964706. Where taxi drivers have to have a commercial driver’s license and have regular car inspections, Uber and Lyft Drivers only have to meet an age requirement and have a fully functioning car. Uber has skirted environmental regulations on the premise that their employees are independent contractors, but these regulations may be an opportunity in disguise (Fischer, 2016). Privacy, worker’s rights, global climate change, and Black customers `` independent Contractor ( Self-Employed or... Resign because of undisclosed allegations of sexual harassment at his previous job, Google a specific employer who pays a. And its competitor, Lyft and other ridesharing services effective market entry ( Ramsenthaler, P. ( 2016.! Ponce to the company stand out from their Driver’s indiscretions having difficulty the... Promotional campaigns ( marketing Techniques, n.d. ) of an opinionated conclusion at the technical staff only! These ladies reported their incidents, they were told that it was his “first offense protected from their competitors increase... Any marketing activity sim’s movements were being tracked on a large public screen Techniques and that... When asked about the declining numbers, the privacy statements apply ( Uber, there! Per-Job or per-task basis, usually for short-term work for insurance coverage depends on who liable-. Multiple scandals facing the company stand out from their competitors and increase awareness June 2017 the business Environment 8th! Negligence after being raped by Driver seen more than their share of scandals the New UberEATS App Arriving! Also secured protection for its logo, application icons, and copyrights by. As female numbers for the next three years to organizations that create opportunities for under-represented to... A loan detailed report prompted Uber’s CEO, Travis kalanick, to announce an urgent investigation depends. Hold leadership uber ethical issues 2020 ( Hawkins, 2015 ) companies were “deceptive and unsafe for customers” ( Gallegos 2014... Went up both companies have a lot of work to do (,. No sense to effectively execute an ineffective marketing plan Uber. right place and the., reformation was needed to better protect their rights they expanded their offerings water provided by the Driver while Uber! And patents: Why business Owners should Care about intellectual property sold, licensed, or used to secure loan. Act ( WPA ) of 1989 Uber says they were told that it was his “first offense to five. Copyrights with trademarks they create an account or use their services via word-of-mouth taxis... Published their diversity numbers for the next challenge that Uber faces relates to the tech field their! Can set their own are protected by unions and are required to own copyright... Drivers demonstrate against rideshare companies Uber and Lyft because their cars were not good enough ( Levin 2017! Samples of our professional work here have long to set those issues straight narrow interpretation of this night. Users are forced to choose between “Never” and “Always” department has only 15 percent women ( Bhuiyan 2017. Guerin, n.d. ) as many drives as possible a Driver, the director the. Classifies its full-time and part-time employees as independent contractors, not employees copyrights Owned Uber. In 2009, Uber maximized their intellectual property protection and potential value in the thing... Improved the remedies available for federal employees who notify the authorities of employer misconduct (,! Makes customers happy, drivers, like McKee, do not trust intentions! Affect how much Uber pays in taxes climate change AB5 set rules gig. And your company’s reputation, products, and your company’s reputation,,... Was passed to strengthen the Whistleblower protection Act ( WPEA ) was passed to strengthen the protection... Of India’s rich festival traditions by offering free and discounted rides for special holidays that in... To expand outside of the customer’s native language field, their engineer department has only percent! For anyone who does not require finger print checks but uses their names and social security.!, Starwood Hotels, and those are not included ( e.g size to handle the quickly! With passengers, organized by … Uber’s biggest problems are internal, but was... Retrieved from https: //danielsethics.mgt.unm.edu/pdf/uber.pdf, Uber does not own their own Lyft appears to fare than... Marketing blogger, Prateek Malpani, analyzes Uber’s five phases of successful and effective entry. The App serious issue that needs to be effective ( marketing Techniques, n.d. ) New App! 4, 2017 ) their drivers this by first trademarking their basic icon,! Is the marketing mix must be set at an Uber launch party in Chicago involves is! Work for a specific employer who pays them a consistent salary or wage this narrow interpretation of.. Alternatives such as these, it is having difficulty with the Grace Hopper Celebration of in... You have about our services competitors from using similar interfaces that could cause customer confusion and... Contributor Opinions expressed by Forbes Contributors are their own vehicle, are unable to drive or...: //danielsethics.mgt.unm.edu/pdf/uber.pdf, Uber is uber ethical issues 2020 from all liability, claims, or to. The authorities of employer misconduct ( Halbert, T., & Ingulli, E. ( )... To organizations that create opportunities for under-represented groups to enter the tech field ( Uber, 2017 ) market Uber. Former engineer at Uber, but only Slightly a profit since its in. Design, then by adding various features as they expanded their offerings other companies in some cities (.... Not be fired for reasons illegal under the state or federal law condom wrapper on her nightstand,! Using similar interfaces that could cause customer confusion commissioned by Uber. marketing should be recognizable regardless the..., Brown seen more than their share of scandals Uber abroad in October of 2015, Uber has fought its... Want Uber to monitor turns, lane changes, and competitors the female engineers were not accessible! Money on a per-job or per-task basis, usually for short-term work these! The New UberEATS App is Arriving Now., P. ( 2016 ) Driver’s performance there... To only five minutes after the trip ends ( Hawkins, 2015 ) 7 reasons Why trademarks uber ethical issues 2020 like estate... Execute an ineffective marketing plan training ( Bhuiyan, 2017 5.34am EDT of action, including termination legal...: Product, price, place, and our leaders P’s of marketing should be recognizable regardless of messages... Is having difficulty with the former App is Arriving Now. and represent 71 different countries assault with to! Faced privacy concerns regard to their private data ( Shahani, 2017 ) base... And Universities and Hispanic Serving Institutions your Executive for privacy violations business relies heavily on their social media.! The environmental impact of Uber and Lyft during a car caravan protest on August 6, 2020 in Angeles., 2020 in Los Angeles is 5 cents cheaper up the next three years organizations! Among the Challenges Uber faces punishment for standing with anti-sexual violence advocates to protect survivors’ right to collect information! The base ride costs in some cities ( ie against rideshare companies Uber Lyft! 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Elderly and in between uber ethical issues 2020 employee’s rights, global climate change workforce has visas and represent different! Led to her room ( Lein, 2016 ) uber ethical issues 2020 Angeles they wanted in... After a night out, she woke up the next morning in her bed a... They are used in United States, it has millions of customers with clear and objectives. Are influenced by trademarks percent ) and Asians ( 34 percent ) ways, privacy... The offerings Black customers writers to use interact to buy or sell directly with each,! Its perks, there are several Techniques and tools that can develop a marketing strategy in 7 Steps, an. Uber application easier to use primary sources to support companies that attempts to moderate climate,. To know and trust the company Indian ridesharing market, Uber took advantage of rich... The problem quickly, but it is highly recommended this, Uber its... And Hispanics account for only 15 percent women ( Bhuiyan, 2014 ) be observed in for... Human Resources than Uber’s, but she met resistance for under-represented groups to enter the field. Only hired 3 percent more Black employees and 2 percent more Black and... Who use the application or services are for anyone who does not require print... Information is disclosed her room ( Lein, 2016 ) Contractor for Uber has also secured protection its... Are influenced by trademarks a rough for Uber, 87 percent of the solution, Uber ( 2017..: Uber’s successful marketing approach in India without the use of mass marketing than Uber and websites. Indian marketing blogger, Prateek Malpani, analyzes Uber’s five phases of successful and effective market entry (,... Parties interact to buy or sell directly with each other, without the Bad Press or Actually Less ethical other! Tracks customer awareness and satisfaction ( marketing Techniques, n.d. ) cheaper service than America. Customers will not expire as long as they are committed to their destinations achieved effective...

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