It seems like this year Uber in trouble, all top executives of the company are leaving the organization. From latest news, it is find out that Uber has encountered with $708 million loss in the most recent quarter and it is also stated that head of finance is leaving the organization. This finance executive departure will make things terrible.
In their latest press Uber shared that company’s first-quarter loss was less than the $991 million loss that was shared in the previous quarter. It seems Uber was also struggling before the announcement that head of finance (Gautam Gupta) is going.
Now another news Uber CEO Travis Kalanick has left the organization. After many scandals on CEO like sexual harassment, privacy attacks, sexism, and law enforcement evasions.
Ex CEO of Uber Travis Kalanick said that:
“I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors’ request to step aside so that Uber can go back to building rather than be distracted with another fight.”
Now a question arise, changing a CEO will be a right decision for the Uber or not? The new face come up with new strategies and company will definitely face a slew of challenges. All of above, the most important thing that matters is whether the next CEO will be manage to grow business or not? Not only he has to focused on better revenue of the business but also on the best culture on workplace. As it is mentioned ex CEO had to left due to bad code of conduct.
So , from all these news it is find out Uber is facing challenges from its top management. Next CEO will definitely encounter with challenges , Three main challenges are stated below:
Culture and Revenue
“It’s really important that they get someone in there that not only has a good business mind, but also has a good culture,” said Gartner research director Michael Ramsey. “That will be vital for them going forward.”
Travis Kalanick is not very easy to replace. As Ramsey points out, a company’s founder really worked out and bring the business to life. Thus, thinks differently about an organization than an outsider does.
Whatever the situation may be uber is where today just because of Travis Kalanick. It is news now days that it will damage company revenue whenever new CEO will come. Investor totally damage the standing of Travis Kalanick.
Now there are some observations about this big change that:
- This is more important as Uber moves closer and closer to its goal of going public.
- About $69 billion valuation is impressive, the company is still losing money.
- If Uber does want to become a publicly traded firm, its next CEO will have to provide some sort of blueprint for how the company will reach profitability.
Ramsey said: “You can’t just manufacture losses without some plan for showing how those losses will disappear at some point” She said “I think that the management change and sort of a quiet period will help with that.”
Improving driver and rider relations
Despite all these issues of profit, better culture and big revenues, one important issue that drastically need to focus is improved relationship between drivers and passengers.
Ramsey stated : “They [Uber] have to do things to restore people’s trust, mostly their drivers’ first and then, second, they have to perhaps take on some things to improve their image with riders,”
According to research in USA almost 90 % to 74% cab industry fell down. When Uber was making business but after all these scandals and issues Uber saw 3% decrease in rides. In a mean while Uber competitor Lyft increased their rides by 3.5%.
There are many problems with uber drivers. One main policy that Uber is now adopting from Lyft is “Tip for Drivers” , Most of the drivers left Uber reason being tipping attracts them a lot. Performance is judged in Uber also by Stars but tip policy needs to adopt.
If Uber wants to keep drivers on the road who aren’t also moonlighting for its direct rival, the new CEO will need to address their concerns and likely expand tipping nationwide.
New Innovations- self driving
Along with all its cultural and driver-related issues, Uber has continued to make hot news for about self-driving vehicles. So, a few of those headlines may not have showing the company in such a good light. Putting vehicles on the road without even the proper permits. Then having one run a red light will do that but the promise is that Uber could have vehicles on the road nearly 24 hours at a time could be amazing.
However, Recode reports that internal issues between factions in the company’s self-driving division could hamper its ability to move forward with the technology.
Expected Upcoming CEO’s
There are news about upcoming CEO’s let have a look on that:
- Marne Levine, Instagram’s COO, could be a good candidate for Uber.
2. Thomas Staggs, Chairman of Walt Disney Parks and Resorts
Rachel Holt- Most powerful lady, another expected candidate for COO.
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