Will Uber Survive its Toxic Culture
The problems at Uber is bigger than CEO Travis Kalanick. Yes, he’s ultimately responsible. However, there’s a team of leaders in place who need to step up and take aggressive public action.
The fact that investors had to step up and do what the leadership should have done is disconcerting.
The extent of an offence determines the breadth of response.
In other words, a public offense requires a strong public response. It took Uber too long to respond. However, internal investigations are ongoing. It looks like efforts to cleanse the toxic culture continue.
The New York Times reports that 20 people have been removed. With approximately 7,000 employees, more need to go.
On the other side of the coin, Bloomsburg reported that Boxman Saint John, former Head of Global Consumer Marketing at Apple is going to Uber as Chief Brand Officer. Additionally, Harvard Business School Professor Frances Frei is now Senior VP for leadership and strategy. Having two strong women in leadership can’t hurt.
These are all good steps, but it’s going to take a heck of a lot more than two strong women and a few firings to right the ship.
Will Uber survive and thrive? One thing on it’s side is that Uber has a name like Google. When you think of on-demand transportation, Uber comes to mind. Most of us don’t think of Lyft or the handful of other competitors.
On a final note, Uber doesn’t need a visionary leader right now. It needs a courageous manager to take the helm, preferably a female.
What will make Uber survive and thrive?
*This is a portion of my article posted on Linkedin. The conversation over there is heating up.
The reason the CEO is out is purely due to declining financials. Five investors forced Kalanick out. I’m not condoning the culture, just saying the bottom line reason the CEO is out is money, pure and simple. Is there a culture connection, maybe?
I have always found it interesting that Uber allows their drivers to also drive for Lyft. I think the real leadership learning here is how a 7,000 employee company allows its employees to work for more than one company and remain competitive with “loyal” employees. Loyalty is becoming passe in the New Normal of business.
Thanks Jim. Fascinating insight re: loyalty. I agree that financials are driving things. However, I think the whole affair began with a video of Travis berating an Uber driver. Perhaps public pressure and governmental investigation would drive some change.
In the end, the fact that pressure was necessary says there were and are some big problems.
Don’t disagree Dan, but financials are a powerful means for affecting change without government intervention. As far as Kalanick berating an Uber driver, really, who cares. Again, if customers are still going to use Uber for their transportation needs, which they seem to be doing, Uber could care less. Again, don’t mean to be so callus, but no one is holding a gun to anyone’s head to work at Uber. You don’t like it LEAVE!
The opportunity to be an uber driver is really working. I read they add about 50,000 new drivers a month. That’s wild!
Is it sad that all that matters is money? That is the issue, if your employs only work there for the money then don’t expect any loyalty. They will always be looking for more. This is not about the drivers but the leadership. If you think money is enough just look at Wells Fargo. They did not protect the company or the customers but their own drive for more money.
Dan, think about it, just how many of these drivers show up at Uber HQ in San Francisco. Again, I don’t condone the behaviors, but drivers only read about it and don’t necessarily experience it first hand. Anyway, I thought Uber drivers are contractors versus employees. Big difference.
Walt, it isn’t sad that money is all that matters. From an investors perspective that is all that matters. When their money is impacted, 9% decline in Uber ridership versus this time last year, as an investor their money is impacted. Their reaction, CEO is OUT.
Indeed it is nice to work somewhere that makes you want to work there, but “nice” doesn’t buy what you need to survive. I’ve worked in both environments and frankly money was the measure of success for me because I wanted enough to enjoy retirement.
Agree with your Wells Fargo issue with one caveat. What Wells Fargo did was totally Illegal regardless of the motivation. This story hasn’t finished yet.
Uber drivers aren’t ’employees’. They are independent contractors. Lyft drivers are also independent contractors. Considering the structure of the driving policy, which is “drive when you want,” there is no need for the kind of restriction you’re suggesting.
As I wrote initially, loyalty to an employer, whether you are an employee or independent contractor, has become passe and, in my opinion, is going to have a measurable financial impact on a company’s competitive advantage. We are entering a “new” normal in business.
Dan a very timely topic and not just for Uber but for a lot of fast growing startups.
We have written before that Leadership and Culture are the flip side of each other. Many startup Leaders have one great idea but lack the maturity and depth to develop a truly sustainable culture for their firms. Sometimes like Steve Jobs getting pushed out of Apple they can develop themselves and become better Leaders and successfully return. In this case I am not sure. But without better Leaders, Uber can not build a Culture for the long term. And without both they will not survive.
Brad
Brad James, The Business Zoo
I don’t follow such stories and haven’t read or heard anything on Uber. In a simplistic, non-academic, possibly naive way, but from what I have seen develop over the years, is the ‘society of business’ not being driven very much more so by the investors? possibly via unrealistic ‘targets’, ‘goals’ & ‘objectives’? Are the investors not only interested in one thing – their investment? Why should the investors not step in? Should they not also ‘work’ to ‘earn’ their return? Keep in touch with reality? If there is what is referred to as a “toxic culture” within an organisation, what has made it ‘toxic’? People trying to please, meet the demands, goals & objectives of their leadership/management chain upwards of themselves?
Typically I find your articles full of golden nuggets. This article seems to be missing the mark. The call outs on strong women really distracted me from your leadership message. I would recommend re-editing and talk about the dreamers, doer, feelers. At a minimum it sounds like the old leadership was missing some of the feelers.
I agree Dan, however, I have an issue with Eric Holder being involved… Just that name means deception and/or failure to me…
What is lacking and yes I will say it, as this world continues to wussyify the male population, it is going to take “Honorable, Honest and Respectful” real men to address these ongoing issues and have solutions… As men step up and be respectable adults and don’t allow this crap to happen anymore, then and only then the rebuilding can start.
There will be pockets of resistance, because of social ignorance and that will never end..!!
This is coming from a 20+ year military veteran and working in government for over 30 years… Men seem to be the root of unnecessary issues..!! It is a 2-way street though… My units were non-negotiable when it came to this environment..!! and being happily married for 24 years, I have an outstanding voice of reason by my side..!!
Don’t be boxed in when comes to leadership, “think and work” outside the box..!!
If I may ask and this is not be in chauvinistic, are female managers better than their male counterparts?
Asides Uber’s late response, what are other leadership lessons one can learn from this???