He created a service that reduced drunk driving rates by 1/3, enabled nearly 200K drivers to become entrepreneurs, provided a valuable service to millions of customers, and accelerated the shift to self driving cars. That deserves serious credit.
Let's not forget that, however you frame it, he might have done all that by exploiting the worst traits of digital capitalism. I.e. they found the cleverest way to keep the revenue flowing (and maybe profits, one day) while getting rid of those pesky liabilities called means of production, all with appalling levels of capital concentration and lack of redistribution.
Kalanick might be out, but UBER now is hardly less monstrous as a company.
I think that apart the "less drunk drivers", "entrepreneurs", and all that fandom talk, Uber went ahead to bump heads with one of the most "exclusive" professions (taxi drivers are the favorite voters for any government), and managed to carve out a portion of their business, out-of-nowhere.
It's like, me starting a soft-drink company and, take on Coca & Pepsi and carve out 10% of their sales globally within 5 years.
They, of course, achieved this "by hook or by crook" but hey you need a ruthless team to succeed this.
Business-wise, a job well done.
Sexism, rape, stealing, avoiding taxes, etc... a big fat NO - thou shall not pass.
Good to see some acknowledgement for what Travis and his team has done in our daily life. It's something not all digital startups could do. Of course, their ops could have had more empathetic approach than their current one, nevertheless, Uber changed the way we commute - forever and Travis deserves some praise for it!
Probably a reference to the lackluster background checks performed by Uber et al.
Closest aggregator of data I found seems to have a very anti-ride-sharing view ("We are an initiative of the Taxicab, Limousine & Paratransit Association"), but here it is nonetheless: http://www.whosdrivingyou.org/rideshare-incidents
What are the numbers for Cab Drivers? They should've listed that. I'm always skeptical of people pointing out the dirt of their competition when they have their own dirt to deal with.
But it is burning money by the boat load and perhaps this now means UBER can attract investors who may have been put off by Kalanick and||or UBER's culture. However these are likely to be more conservative investors and on that basis may not like the underlying financials any way.
No. They damaged the move forward with self driving cards by putting them on roads before they were ready and without permission and breaking the law. Not to mention the part about how it's all using stolen tech.
FWIW, I heard they convinced investors that economy of scales will make their pricing profitable in the future. At least that's what somebody said in this other Uber thread here.
Whether their calculations will pan out is another story. Whether such tactics should be allowed - yet another.
I suppose the words "pyramid scheme" has been mentioned before... hah, you gotta love the way technology does it, shall we call it Pyramid Scheme 2.0? Promise everyone profits, investors and workers alike, but scam the workers, and maybe there'll be profit for the investors, somewhere in the future.
It's more like a Ponzi scheme than a Pyramid scheme.
For investors, the promise of profitability is continually just over the horizon, as long as you keep investing money. Everyone can see the company is potentially very profitable, but nobody can see a route there.
Though for the drivers, it looks a lot like a multi-level marketing scheme. Be your own boss, choose your own hours, work hard and you will be rich.
I don't see what scales, their costs are per person/vehicle there is no way with their model to see a reduction in costs by acquiring new drivers. Even if you remove the driver and can have fully autonomous cars the costs are perhaps marginally reduced in the long term. The way they burn money I don't think they have that long of a term in them.
I always believe their intention was to become big enough and ubiquitous enough that they could become a monopoly supplier and therefore set profitable prices without the risk of being undercut, having consumed or removed their competition through subsidised rides.
> enabled nearly 200K drivers to become entrepreneurs
Oh, please. Some argue that those drivers are employees, some argue that they are contractors providing a low-level service, but calling them "entrepreneurs" really is a bit of a stretch.
Uber drivers are entrepreneurs like the fry-station cook at mcdonalds is a small business owner.
Except McDonalds can't make you pay for your own fry station. Or lease it from McDonalds at high rates:
For examples, Experian estimates the average weekly payment for a new car
lease is $96, while a 2013 vehicle through Xchange costs $130 a week.
[...]
After reviewing the terms of one lease, experts estimate that a driver would
pay $25,210 plus $5,000 for the residual value for a 2015 Honda Civic, far
more than the Kelley Blue Book fair purchase prive of $18,142.
"In early September, McDonald’s announced it would start offering all-day breakfast across the U.S. Customers will soon be able to order a limited selection of breakfast items past the usual 10:30 a.m. cutoff. That will require changes in the restaurants, such as finding room on the grills for eggs and in the fryer baskets for hash browns when most customers are ordering burgers and fries. Those changes cost money—including a potential $500 to $5,000 for equipment—that will fall mostly on franchisees."
Sorry, I need to highjack a comment of yours for a PM (once you replied to this, I might delete the off-topic text):
You gave me carreer advice ("Companies (generally) don't hire "generalists". They hire people to solve their particular problems. You need to show why you're the right person to solve company X's problems.") and I want to thank you for that!
I had a job interview and the interviewer was really happy for me to identify a certain UX problem. The interview went well and they let me do a concept for the solution of the problem. I got the job! (not yet on paper, but hopefully soon) I will be a Product Manager with some Product Ownership and with a decent salary (I think a bit over the budget they planned initially).
"You" in the original comment was very obviously a fry cook: "Uber drivers are entrepreneurs like the fry-station cook at mcdonalds is a small business owner. Except McDonalds can't make you pay for your own fry station."
... and are accused of industry espionage, covering-up crimes of their drivers, mishandling medical information, covering-up managers repeatedly using company chat to solicit sex (wtf, I too want a job where I'm paid for doing that), chaotic internal politics resulting in projects being slashed and people moved around for no reason, ...
I don't know, if this is true then they could have expected that some of his innovations may backfire.
- enabled nearly 200K drivers to become entrepreneurs
I used to work in direct sales, aka multi level marketing. They too called the people there "entrepreneurs". Those very people your describing as "entrepreneurs" have been suing Uber for missing money. When confronted by one of these drivers about money Kalanick embarrassed himself. It is a gig, barely a job and not "entrepreneurial"
- provided a valuable service to millions of customers
So do tobacco companies, but we wouldn't qualify that as something good. Doing buisness and having customers requires that you do this.
- Accelerated the shift to self driving cars. That deserves serious credit.
Newco/waymo lawsuit? Is that what your suggesting? The only one who is getting close to this in a meaning way is tesla. They are the only ones with the data and the drive to do it.
Lets talk about other things uber has done
- sexual harassment issues (theres a lot here unpack it at your leisure)
- India rape case and the file floating around corporate offices
- Its creepy data surveillance programs
- Its programs to avoid law and code enforcement (greyball)
- Its program to track lyft drivers (hell) also totally counter to the "entrepreneurs" idea of them
- Its continued flouting of regulation and the law (just file the paperwork like everyone else)
These are the less than stellar things that uber has done to burn through investors money in an attempt to secure their market share. Was it needed? I don't know? Does it paint a pretty grim picture that Uber is a company that is willing to do anything to get ahead? It sure looks like it. Kalanick is the ONE constant in all of this, for him to be unaware of all or most of this would make him derelict in his duties as CEO, for him to be aware of all of it doesn't make him look like a good human being.
The icing on the cake is the lactation room incident (see: http://www.mercurynews.com/2017/06/08/uber-ceo-does-a-riff-o... ). At this point we go from sketchy possible evil CEO to something that looks like it is right out of HBO's Silicon Valley, only in the show the scene would end with him throwing out a woman who was using the room for its intended purpose to put a fine point on its insanity.
Kalanick might have done a lot of good, on a lot of fronts, he also might have been aware of all of the above and either done nothing or actually encouraged it. Uber might succeed, but at this point it is living under a microscope and the odds are that it will be one of the biggest private implosions in the valleys history.
- Accelerated the shift to self driving cars. That deserves serious credit.
If you consider corporate espionage and theft of IP "accelerating the shift" but how much of what Uber was marketing were they actually responsible for?
And the drunk driving claim depends on the study. [1] Which suggests it requires further study. Not to decide whether it should be a talking point in favor of Uber but to understand why services like Uber decrease drunk driving if, in fact, they do.
Is it purely a price sensitivity thing? Is it a simplicity/convenience thing? Is it just because summoning an Uber became hip among a certain demographic whereas taxis weren't? It would be useful data because there are possibly useful public policy responses that could address why people drive drunk in some cases.
> I used to work in direct sales, aka multi level marketing. They too called the people there "entrepreneurs". Those very people your describing as "entrepreneurs" have been suing Uber for missing money. When confronted by one of these drivers about money Kalanick embarrassed himself. It is a gig, barely a job and not "entrepreneurial"
Yup. Telling grunts that they're "entrepreneurs" as an excuse to not pay them is a very old scam.
Back in 2010-2011, I was unemployed, and I was constantly getting messages (mostly via CareerBuilder) from life insurance companies saying they had sales positions for me. They sounded sketchy, largely because they were all hitting me up when I had no sales background whatsoever, so I looked some of them up.
The reports were... not pleasant. Ripoff Report was full of complaints about these companies [0]. Some examples:
- You had to pay to receive training.
- You are expected to drive around to lots of places as part of your job, at your expense.
- You are legally classified as a franchise, so they don't have to pay you like an employee.
- Compensation is 100% commission, plus the money you make by recruiting other people (pyramid scheme much?).
- People complained that their job largely consisted of repeatedly harassing unionized companies who went with the life insurance provider associated with their union. They were ordered to attempt union busting as part of their job.
- Sales goals were set up to be impossible to meet, you are given no support whatsoever to help you reach your goals, and the people above you in the pyramid would frequently berate you, call you an idiot, and tell you that you're a hopelessly terrible salesman.
Oh, and here's the real kicker: once they got wind of people using Ripoff Report to complain, they would astroturf fake reviews. The reviews are often striped: every negative review is immediately followed by a positive review accusing the previous reviewer of having a personal vendetta against the company because they sucked at being an entrepreneur and didn't know how to grow their own business and said that they were just jealous of all the successful entrepreneurs the company has grown.
