Uber has faced a steep learning curve during its breakneck rise. Challenges ranged from dealing with local city regulations and hiring reliable drivers, says journalist Samantha Kelly, to developing a loyal rider base and scaling [increasing the work activity] at an astronomical rate. Ubers managers have had to meetand are still having to meeta great many other challenges.

In Chapter 1 you learned of Seven Challenges to Being an Exceptional Manager. Many of Ubers difficulties that we will discuss throughout this case can be traced to these challenges. Heres a list of the seven challenges, along with a preview of the issues we will discuss in the coming chapters:

• Challenge 1: Managing for competitive advantage. Uber has historically had little trouble outperforming its competitors, but since 2017 the company has lost substantial market share to Lyft, its primary competitor, and has seen its valuation drop from $70 billion to $48 billion. We will explore what Uber is doing to remain competitive, including how it is working to attract and retain top talent, innovate new technologies, and repair its reputation.

• Challenge 2: Managing for information technology (IT). Technology was the foundation of Ubers differentiation as a company and, thus, its success. We will discuss how the company is using IT to make decisions, motivate its drivers, and innovate. We will also explore the challenges that Uber has faced in its use of IT including its controversial use of geofencing and other customer-targeted technologies.

• Challenge 3: Managing for diversity. Companies should work to capitalize on the opportunities inherent in todays incredibly diverse workforce. But recent news indicates that Uber, much like many other tech companies, has very little diversity in its full-time workforce. Moreover, workers have spoken out about an alleged hostile and sexist work environment at Uber. We will explore these issues along with what Ubers new executives are doing to change the companys diversity profile. We will also discuss major changes to Ubers diversity- and inclusion-related HR practices, including interviewing, training, and performance reviews.

• Challenge 4: Managing for globalization. Globalization presents many opportunities but also many challenges. Uber has worked furiously to compete internationally and has encountered successes and troubles along the way. We will discuss the regulatory, legal, and cultural issues Uber has faced as it has expanded into international markets and what the forecast is looking like for Ubers global market share.

• Challenge 5: Managing for ethical standards. Dealing effectively with ethical challenges is difficult for any company. For Uber this is especially challenging given its size, speed of growth, international presence, and a regulatory environment that struggles to keep up with dynamic business and technological innovations. We will explore many of the ethical dilemmas that Uber has faced, including self-driving cars, the Alphabet lawsuit, and Greyball software.

• Challenge 6: Managing for sustainability. Being green is no longer a choice for organizationsits a necessity if a company wants to be competitive. Some recent data suggest that transportation network companies like Uber have actually put more cars on the road rather than decreasing the number of vehicles, and therefore, emissions. Furthermore, competitor Lyft may be winning the reputational race for the title of the more socially responsible company. But Uber has interesting ideas in play, including a partnership with NASA to develop flying electric cars. We will explore these things in detail throughout the case.

• Challenge 7: Managing for happiness and meaning. Todays workers have seen the lines between personal life and work life almost completely blurred. With so much of our lives spent working, or attached to work via technology, we demand more meaning and fulfillment from our jobs. Many of Ubers employees find the fast-paced, almost frenetic environment to be energizing and rewarding, but others have claimed they experience a tremendous lack of work-life balance in the company. We will discuss how Uber is managing the challenge of creating work that is meaningful for its employees. We will also discuss the efforts of Ubers new leadership to improve the companys culture.

In future parts of the cumulative case you will learn that Uber ousted its founder, Travis Kalanick, as CEO and replaced him with a new leader. What impact does this have on the company based on the Seven Challenges to Being an Exceptional Leader?