WILL TRAVIS KALANICKS departure as CEO allow Uber to develop a more grounded and ethical corporate culture? It may take several years to answer that question confidently. But in thinking about Uber's future, we can make some observations. U B E R fo A Cynic's View. Critics may see the resignation of Kalanick as just one more stunt to reduce heat and scrutiny, and unlikely to result in meaningful change. Corporate culture is never easy to change, this line of reasoning goes, and Kalanick, as co-founder, Travis Kalanick, Uber's co-founder, was forced to resign as CEO in the summer of 2017 under mounting pressure by investors over his alleged remains a strong presence in two ways. First, even role in and mishandling of Uber's litany of ethical challenges. Shortly after should he sever all ties with Uber, as co-founder he Kalanick's resignation, Uber's board presented Dara Khosrowshahi as the new Uber CEO. Khosrowshahi was CEO of Expedia (a travel website) at the contributed much of the company's DNA (through time of his Uber appointment. the imprinting process discussed in Chapter 11@)), Danish Siddiqui/REUTERS so the company is prone to lapses by nature. And second, Kalanick has not cut his ties; he still remains intimately involved in the company. Although no longer CEO and chairman, he keeps his board seat. In fact he remains one of three company insiders on the board, along with co-founder Garrett Camp and early employee Ryan Graves. This block holds a majority of the voting rights. Camp, Kalanick's long-time business partner, is now chairman of the board. Beyond Cynicism. On the other hand, business as usual for Uber is becoming increasingly problematic. For years running, Uber seemed willing to flout rules, laws, and regulations because the service was liked by users who would not like the service to be removed. Uber's customers were happy because they could hail rides conveniently and cheaply, often in areas that were underserved by regular taxis; drivers were happy because they could choose when and how long to work, and local politicians were cautious about throwing a monkey wrench in the works. Why make your voters unhappy? But that tactic works best at the local level, and Uber's challenges are increasingly broader, both nationally and internationally. Uber now fights well-funded lawsuits instead of hamstrung municipal bureaucrats. So Uber can no longer fly under the radar. Uber is so big and established that the CEO's boorish behavior or an employee's complaints about sexual harassment quickly go viral on a global basis. Eye on the Prize. Uber may be at a point in its trajectory where investors simply won't allow it to continue a self- destructive tendency to cut ethical corners. Too much is at stake. In this line of thought, the biggest opportunity with Uber is not its current business. Uber's goal remains centered around self-driving cars, supported by high- powered mobile logistics networks, and online mapping systems. Therefore, in this view, its current business is secondary. Recall from the start of the chapter and ChapterCase @ that even The Wall Street Journal opined in 2014 that Uber's biggest potential rival was itself-that only Uber was able to bring down Uber.64 Which takes us back to Uber's naturally disruptive nature. With a fleet of autonomous vehicles offering cheap rides, people don't need to own cars anymore. When car ownership is no longer needed, it will certainly impact the old-line car manufacturers. From there Uber might expand into the delivery of everything, taking over last- mile deliveries for Amazon.com and other online retailers. Uber might even work in concert with shippers such as UPS and FedEx. One Possible Future. Note that in this version of the future, in which Uber is the primary player and provider for self-driving car technology, and controls the platform under which we might summon a car to our door, some of Uber's current challenges disappear. Kalanick was pitching benefits to the consumer when he stated: The reason Uber could be expensive is because you're not just paying for the caryoure paying for the other dude in the car. When there's no other dude in the car, the cost of taking an Uber anywhere becomes cheaper than owning a vehicle."65 Not having to deal with drivers must sound attractive to Uber, which has had antagonisms with its work force, as the viral video of the argument between a driver and Kalanick showed. Uber also still has to subsidize rates to the drivers. On the regulatory front it's reasonable to assume that states will continue to remove obstacles to self-driving cars and the companies that manage them. So in this future, many of its Page 439 compliance failures go away too. Current Challenges. But Uber has to get through current challenges to reach its future goals. Before Kalanick resigned, the most visible efforts to deal with scandals and controversies were to manage perception. In 2015 Uber hired David Plouffe as senior vice president of policy and strategy, explicitly to improve public relations and to lobby politicians. Previously, Plouffe had been the manager for the 2008 Obama presidential campaign and then a senior adviser in the administration. At Uber he pitched the social benefit of Uber's contribution to the transportation ecosystem and its ability to fix traffic congestion, cut down on drunk driving, and provide reliable and safe services to underserved city and suburban areas-even helping to end poverty by providing greater access to reliable transportation. And he minimized criticisms as misguided.66 Exodus of Talent. Plouffe walked away in early 2017. He was followed by Rachel Whetstone, who headed policy and communications globally; she was hired in 2015 and left in April 2017. In fact, a steady trail of senior executives and lead engineers has left Uber in the wake of the continuous scandals that plague the brash startup. They include Uber's head of autonomous car technology, head of online mapping, and an artificial-intelligence (Al) expert. Some cited issues with the company's values as the reason for their departure. When resigning after only six months on the job in spring 2017, Uber President Jeff Jones stated, The beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber.67 Keep in mind that Uber has not yet gone public, so most executives and engineers likely left millions of dollars on the table when they left. That is, they left behind promised stock options due to their premature departure. Going public is key to understanding Uber in the long run. Uber's board may have its own timetable for that step, but an IPO will allow Uber's investors to realize their gains in a big way. If an IPO is part of the board's plans, the company must develop a more mature, professional, and diverse cadre of managers. Otherwise, Uber's trail of unresolved ethical issues and lawsuits could derail an envisioned IPO, or at least of realizing full value in the market. Hope for the Future. If Uber is able to mend its waysand much depends on how the full board responds to major investors-Uber has a much better chance of realizing the future it hopes will unfold. 68 Donly the following questions and only at least onco tovou chacomatos Explain Uber's business model and deduce its strategic intent