Uber Technologies Inc. (UBER)

Uber Technologies, Inc. is an American corporation that offers mobility-related services. Its main offering is a smartphone application that enables individuals to request transportation from drivers who own their vehicles. The application uses a computer algorithm to set trip fares. It bases these fares on factors such as distance and market demand. Uber also takes a percentage of each booking as its service commission.

Where did the idea of Uber come from?

Uber’s website explains that the idea began when Travis Kalanick and Garrett Camp were stranded in Paris and struggled to find a taxi. The incident inspired them to use a smartphone to request a ride from their exact location. This idea removed the need to wait or search for a car, which quickly appealed to many people. As a result, Uber grew popular in major cities such as Paris and San Francisco.

Growth

Uber has grown significantly since its launch in 2009. It expanded from a San Francisco–based startup into a global corporation. The company also added new services, including food delivery, package delivery and freight transportation. Despite this growth, several countries banned Uber because of concerns about its effect on local markets. Critics argue that Uber’s disruption of the taxicab industry has pushed traditional taxi drivers into financial hardship. They also claim that working for Uber is not financially sustainable.

In 2008, entrepreneurs Garrett Camp and Travis Kalanick brainstormed the idea for UberCab, which later became Uber. Camp initially suggested creating a full black-car service for professionals, accessible through a smartphone app. Kalanick hesitated because he did not want to own cars or manage garages. Eventually, they chose to focus only on the ride-hailing app. Uber then attracted cars and drivers by giving professional drivers free iPhones with the app pre-installed for black-car and limousine services. This approach appealed to drivers because they could use UberCab fares to fill their downtime.

Uber’s CEO

Managing a global corporation with more than 16,000 employees requires strong skill and experience. Camp and Kalanick discovered Ryan Graves, Uber’s first full-time CEO, through a Twitter post. Later, in December 2010, Kalanick took over as CEO. Graves then moved into the role of general manager and senior vice president of global operations.

Since 2017, Iranian-American businessman Dara Khosrowshahi has taken over as Uber’s CEO. Before joining Uber, he served as the CEO of Expedia, an online travel firm. Additionally, he is a fervent supporter of refugees in difficult circumstances, having fled Iran during the revolution when he was only nine years old.

Going Global

In 2010, Uber started offering rides in San Francisco after showcasing its service at an event called the SF AppShow. Despite being more expensive than traditional taxis, the convenience of ordering a ride through a smartphone quickly attracted users, and Uber expanded to other major U.S. cities. By the end of 2012, Uber had launched in international hubs like Paris, London, and Amsterdam.

In 2012, Uber faced competition from Lyft, which offered a lower-cost alternative using personal vehicles. To expand its customer base, Uber introduced UberX in July 2012, which allowed hybrid and SUV owners to offer rides at reduced fares. This service became Uber’s most popular.

利用 investment from venture capital firms, Uber continued to grow, introducing new services like UberPOOL and Uber Eats. The company also expanded to new markets, including China after raising a $1.2 billion investment. By July 2015, the company became the most valuable start-up supported by venture capitalists, with a value of $51 billion.

Uber controversies

Uber faced a rare defeat in 2016 and sold it’s failing Chinese branch to its rival, Didi Chuxing. The company received an additional $3.5 billion in investment funds that year.

• Trump connection

However, Uber faced several controversies in 2017, starting with the backlash against CEO Kalanick’s seat on Donald Trump’s economic advisory council, which led to the #DeleteUber boycott.

• Sexism

Former employee Susan Fowler then published a blog post accusing Uber of sexist workplace culture. An internal investigation was conducted, resulting in the firing of 20 staff members and 47 recommendations to improve the workplace culture.

• Greyball software

According to an article by The New York Times, Uber employed a software tool called Greyball to deliberately trick law enforcement authorities in cities where its service did not comply with regulations. When officials attempted to hail an Uber as part of a sting operation, they were “grey balled” – meaning they could see cars on the app nearby, but none of them would pick them up. This allowed Uber drivers to avoid receiving tickets from the authorities.

Following criticism from shareholders, Kalanick resigned as CEO and was replaced by Dara Khosrowshahi in August 2017. Khosrowshahi took steps to improve the company’s finances and image, including an IPO in May 2019 that didn’t meet expectations, leading to layoffs of over 1,000 staff members.

Driving into the future: Uber’s plans

Uber has announced its plans to launch a fully driverless service with the assistance of Motional. Motional is a startup that specialises in robocars and has been offering robotaxi services in Las Vegas since 2018.

Initially, self-driving cars will only be available in Las Vegas, but there are plans to expand the service in the future.

The robocars will be equipped with two “vehicle operations” to monitor the technology and provide assistance to passengers.

The customised self-driving Hyundai Ioniq 5 mid-size hatchback will be available for users who request a ride.

This move is part of Uber’s effort to distance itself from its current business model, which relies heavily on independently contracted drivers. The company has faced legal issues in recent years related to this business model, including a lawsuit by Waymo, Google’s self-driving unit, for alleged trade secrets and intellectual property theft. Additionally, Uber’s self-driving initiative suffered a setback when one of its test vehicles hit and killed a pedestrian in Arizona in 2018. The Biden administration is currently proposing new labour regulations that could reclassify millions of gig workers as employees. This could put companies like Uber in trouble as they rely on low-cost labour methods. The new labour rule expands the criteria used to determine eligibility for minimum wage and overtime pay protections and aims to prevent the misclassification of workers as independent contractors.

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