Home >Opinion >Uber’s troubles
Uber Technologies Inc. founder CEO Travis Kalanick. Photo: Reuters
Uber Technologies Inc. founder CEO Travis Kalanick. Photo: Reuters

Uber’s troubles

The blowback of Uber's callous behaviour on several issues has been strong enough to compel founder CEO Travis Kalanick to take a leave of absence

Taxi aggregator service and gig economy pioneer Uber has an image problem. Charges of sexual harassment in the company and a work culture permissive of it; callous behaviour by executives in the aftermath of the rape of an Uber customer by the driver in India in 2014; a video of chief executive officer Travis Kalanick having a shouting match with an Uber driver over the latter’s diminishing pay—little wonder the blowback has been strong enough to compel Kalanick to take a leave of absence.

Those image problems exacerbate business struggles. Uber has clashed with regulators around the world—inevitable given the paradigm shift it represents. And a vexing question about its core business model refuses to go away: are the drivers contractors or employees? If pending cases resolve in favour of the latter, it would upend Uber’s business model.

All this as it continues to lose money; little wonder that several analysts have questioned its $69 billion valuation. Uber ushered in the next age of urban mobility, but staying at the top of the market it created is going to be a tough job.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
My Reads Redeem a Gift Card Logout