Uber’s image is taking a beating: How will the market react?

Uber barges ahead, picking up major criticisms of its business policies and practices. Will the marketplace result in a shift towards more responsible corporate behaviours?

The Uber story is heading for business case stardom. It started in 2008 as a brilliant ‘why didn’t I think of that’ idea of using new technology to revolutionize personal transport arrangements. The smart phone car service is now valued at $18 billion and rising.

Success factor no 1. Clever use of IT

The basic proposition is easy to understand. Personal travel could be revolutionized by the use of information technology.

Success factor no 2. The creative leap and ‘Why didn’t I think of that?’

The creative leap is easy to communicate if the initial AHA insight triggers the admiring and envious response ‘Why didn’t I think of that?’

Success factor no 3. ‘It’s so obvious. Why didn’t I do anything about it?’

Maybe the reception to its early adaption is the stronger if the now-obvious insight was already widely considered. Most of us might have speculated of using IT car-sharing. Über acted on the idea.

Success factor no 4. The founder and named executives are tennis nuts

Only partly true. The corporate web site introduces its team of dynamic young thrusters as sporting enthusiasts to a person.

The thumbnail sketch of CEO Travis Kalanick lists his achievements as founder of the first P2P search engine, and as someone who ‘racked up the second highest Wii Tennis score in the world’. It seems somewhat less keen to reveal that Travis is approaching 40, a rather ancient codger among the Wii-wielding juveniles of California’s Venture community.

No brainer or roller coaster?

Like all radical innovations, Uber looks to be thriving in crazily dangerous conditions, more roller-coaster than no-brainer for market activists.

The matter of corporate social responsibility

A highly damaging story is bubbling up [November 2014] over errors of corporate social responsibility. The whiff of near adolescent energy and self-confidence in the web-site is being linked to an apparent pride in a corporate skill at accessing information of potentially valuable but illegal kind from its customers. As such tracking is part of the Corporate USP, the story at very least suggests insensitivity to its CSR implications.

Maybe in the dash for growth, any publicity was good publicity. That has been the slogan of more than one successful entrepreneur who later modified the approach for pragmatic or ethical reasons. Meanwhile the Ubervolk continue their search for global success for a powerful idea.

Tuesday December 9th

Über ban in Delhi by Transport Authorities after an alleged rape in a Uber taxi, Friday December 6th.

To be continued

[Comments and suggestions from Uber users and leadership students are particularly welcomed]

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One Response to Uber’s image is taking a beating: How will the market react?

  1. Tom says:

    Hi all,

    I expect to hear a lot more in about Ubers CSR practices in 2015.

    I heard on the radio today about the alleged rape in India from which Ubers slack background checks have now been attacked.

    On the defence Uber have said – “There were no defined rules in India on background checks for commercial transport licenses”.

    This shows to me that Uber may have known it had slack and insufficient background checks in Indian, thus paying no regards to higher ethical responsibilities by only doing what’s necessary.

    Although they are now working with the government to tackle the issue, they could have had stricter checks to ensure passenger safety, even if ‘there were no defined rules’. But, going above the rules in the first place I doubt would have brought media attention.

    Uber have also been banned in Hamburg as the company did not comply with German laws on the carriage of passengers. But, I’m sure it will continue to dominate.

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