Uber Hits a Bumpy Road

Uber Technologies, Inc. is the worlds largest technology start-up, valued at close to $70 billion. But that doesnt mean it has been smooth sailing for the ride-hailing company since its start in 2009. Despite disrupting and revolutionizing the transportation industry in a short period of time, Ubers meteoric rise has caused some shortcuts in organizational structure, corporate culture, and effective HR practices that have left the company with self-inflicted wounds that may take a long time to heal. Uber has experienced several scandals over the past few years, including drivers demanding to be classified as employees (not contractors), a tool called greyball that allows data collected from the Uber app to identify and avoid enforcement officers trying to catch Uber drivers in cities where the service was illegal, and recent resignations of top executives, including the companys president and the heads of product development and engineering. But nothing has been quite as damaging as a recent blog post by a former female employee, which detailed the inappropriate behavior that seemed to be commonplace in Ubers workplace culture. The allegations of sexual harassment put forth by former Uber engineer Susan Fowler were explosive. Detailed in a February 2017 blog post, Fowler says she alerted company HR about her managers inappropriate behavior, even taking screenshots of his suggestive emails, but Fowler was told her boss would not be fired for sexual harassment because he was a high performer for the company. After Fowlers story went public, the company hired former U.S. attorney Eric Holder to investigate the allegations and other workplace issues. Holders recommendations, which the Uber board of directors unanimously approved, include changes to senior leadership, enhanced oversight by the companys board, changes to the companys internal financial and audit controls, revisions to the companys cultural values, mandatory leadership training for senior executives and other managers, improvements to the overall HR function and complaint process, and the establishment of an employee diversity advisory board. In addition, as the result of a separate investigation, Uber fired more than 20 other people because of harassment claims. With increasing pressure from the companys board and other investors, CEO Travis Kalanick said he would take a leave of absence while still mourning the unexpected death of his mother in a recent boating accident. However, most board members lost faith that Kalanick would be able to come back after his leave and make things better. At the urging of the board, two venture capitalists were dispatched to Chicago, where Kalanick was interviewing COO candidates, to present him with a letter from five of Ubers major investors demanding his resignation. After hours of discussion, Kalanick agreed to step down. According to an Uber spokesperson, a committee of 14 executives is running the company until a new CEO is hired.

Critical Thinking Questions

1- According to recent data, only 36 percent of Ubers current employees are women. How do you think this situation helped perpetuate a flawed corporate culture?

2- What can Uber do to ensure its competitors are not chipping away at its dominant market share as a result of such bad press?

3- Do you think installing an experienced female CEO would help the company change its culture and workplace environment? Explain your reasoning.