As Uber grew in power, balance between innovation andcompliance was dwindling. When Kalanick was asked whether Uber would follow anylocal driving laws, he replied until enforced, they won’t follow. But wasreprimanded by Woo, as compliance was critical to defend themselves against anyuntoward situation.Kalanick’s experimentation attitude, led him to unveil a newformula named as cascade to calculate the pricing details, this did not divulgemuch information before the client booked. Many employees in the backdrop wereusing firehouse to provide discounts to some employees and not all.
Usage ofFire House was not legal according to the attorneys.Kalanick started to preach compliance after they were accusedby alphabet. He made Yoo the chief legal officer, so that she avoidsinterfering in daily business. Ultimately with pressure from investors Kalanickresigned.How Uber Hid The Data:When Dara Khosrowshahi took over, she warned the employeesfor a tough six month, as there were going to be legal complications. Themissing compliances, breaking rules almost put around 5 criminal chargesagainst Uber.
Uber used a software called Ripley to hide the data, when policeor any legal department raided the uber office. Although uber defended posingit as a regular practice to keep data safe and secure but there have beeninstances when Uber erased data whenever there was an investigation. It wassworn in by uber employees. Susan Fowler(whistleblower), whose blog brought out in open the entire culture issue at When Susan Fowler joined the company, she was enthusiasticabout her work as a software engineer as uber was expanding its branchesthrough out the world. After her training she was asked to hoin a team, whereshe was sexually harassed by her manager, HR turned a deaf ear to the complaintby Susan. She then somehow found out a different project so that she does not have to go through thedepressing moments again. There was an organizational chaos where everyone was tryingto take other’s place, managers were fighting to take the direct supervisorsplace. Managers were boasting about themselves and trying to undermine others.
As a result of which, many projects were being left behind and employees wereunaware of what next, there was also a constant fear of team getting dissolvedand another new project with a n impossible deadline. There was a very lowpercentage of woman in Uber owing to different harassments and ineffectivenessof the HR department, who were siding with High Performer Managers. They eventhreatened to fire the employee as she reported to the HR, because Californiais a free employee state. The HR department of uber was completely inept andinefficient.With growing inter organizational chaos, and unfriendly workenvironment lot of employees resigned and the woman population was down to 6Percent. Some other articles that I read: As CEO Dara was just taking charge of office, another dark incidentfrom 2016 surfaced, only a year later, in November, 2017.
In 2016, when therewas a breach in security and privacy, Uber instead of informing the public andreaching out to the individuals whose data was leaked, made an attempt to hushthe case. There were 7 million drivers and 50 million riders whose name, emailid, and contact numbers were stolen. Uber paid the hackers and hid it from the legalauthorities under the leadership of CEO Travis Kalanick. With a change in leadership, Uber’s prime step is totransform the corporate culture and incorporate integrity and honesty. Theletter issued by Dara Khowsroshahi, CEO, which talks about integrity andhonesty, is an indication of his vision and plans for the company. By issuingan open letter, taking measures to get in touch with drivers and riders whosedata was breached, and laying off the Chief Security Officer, Joe Sullivan, anddeputy Craig Clark, Mr.
Dara has demonstrated a positive way forward in Uber’scorporate culture. Uber has plans to go for an IPO in 2019. The IPO will fetchlow value if Uber continues to play foul. For a successful IPO, there is a direneed for major transformation of organizational culture and strict adherence tocompliances i.e. improved corporate governanceN1 DKS2 . Uber’s culture of stepping onother’s shoes and downgrading tem, so as to get their position. Ineffective HRdepartment was salt on the wound.
It needs to restructure its HR department,maintain an employee friendly environment so that it can grow and focus itsmoney on R and innovation, rather than lawsuits. N1Expandhere more on how improved org culture and corporate governance will help Uberbe successful. Some points that I can think of are:Better employee productivity, lower attrition rate,better gender ratio, instead of focussing on law suits, it can focus oninnovation. Better org culture ->hiring of better drivers ->safety ofcustomers-?growth in business->revenue and profitability.
No money beingspent on firefighting the law suits then. DKS2