A business case - Chaos at Uber -published in 2017

A business case - Chaos at Uber -published in 2017

1. Chaos at Uber: The New CEO's Challenge

2. Key Decision Question How should Uber address its leadership challenges and toxic culture to restore its reputation, improve performance, and ensure sustainable growth?"

3. About Uber Uber Technologies, Inc. is an American multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport. Key Facts: Founded: March 2009; 15 years ago Founders: Garrett Camp, Travis Kalanick Headquarters: San Francisco, California, U.S. Area served 70 countries and 10,500 cities worldwide Number of Warehouses (2024): 890 Global Reach: USA, Canada, Mexico, UK, Japan, Korea, Taiwan, Australia, Spain, Iceland, France, and China

4. Investors Google Maps, Google Cloud AWS Technology Partners Research Partners Drivers Hire car partners Lobbyist Insurance Financial partners Enhance positive Network Effect Reduce Negative Network Effect Refine Value Proposition Expand geographically Improve technology For the Passenger Convenience Real time tracking Accurate ETAs Availability of digital payments For the Drivers Income generation Flexible working hours Ease of client acquisition Instant Payment Fair, Secure, Safe Rating Facilities Responsive Transparent Passenger: Who do Not own their car Travel for business Travel out the country Want an economic ride Want a luxurious experience Drivers: Part time drivers Full time drivers Commercial drivers Network App Algorithms Platforms Architectures Captured data Brand Data Analysis Social Media App Paid campaign Word of mouth Online Advertising Offline Advertising CAC: Cost of customer acquisition WACC: Weighted Average Cost of Capital Legal and Settlement Platform development and Expansion Infrastructure cost Commission per ride Surge pricing Cancellation fees Brand Partnerships Shipping Commisssion Uber Group 1 11/01/2025 1

5. Uber Uber SWOT Matrix of Presence

6. TTF Domains and Dimensions, a summary of 9C’s parameter Enterprise Domain Industry/Sector Domain Macro Domain (National and Global) Capital Customers Country Dynamics Ample financial capital Global markets Market value Investor confidence Strong customer base due to its convenience and pricing model Customer loyalty was threatened by the company’s scandals and negative media coverage Need to restore consumer trust for survival. labor laws, taxation, and safety, leading to legal battles and regulatory pushback Gig economy Driver classification Capability Competitors Cross-Country Dynamics - Technology development Logistics Scaling operations Scalable platform Lyft in the U.S., Didi Chuxing in China, and Ola in India Different regulatory environments and societal norms to scale uniformly Political risks Culture Collaborators Technology A ggressive, competitive Performance-driven Move fast and break things Drivers, Vehicle owners Third-party companies for services like insurance, vehicle maintenance, and marketing. Mapping system Data Management Cybersecurity

7. Competitive Rivalry Supplier Power Low- D ynamic pricing Adjusts the fares based on supply and demand Incentivize drivers to work during peak hours and in busy areas.  Threat of New Entry Moderate – Considering the  competitive landscape of Uber High- Due to P ricing, Service Q uality, Brand R eputation, and Availability of Drivers Buyer Power Low - Data analytics is utilized by the company to pitch an optimum price to the customer. Threat of Substitutes High – Considering availability of alternative transportation options Porter's Five Forces Analysis for Uber

8. Key Decision / Alternative Impact on Reputation (0.4) Long-Term Sustainability (0.3) Employee Morale and Culture (0.2) Legal and Compliance Risk (0.1) Total Score (0-10) Leadership Change: Hiring Dara Khosrowshahi 8 (positive) 9 (strong leadership) 7 (improves culture) 9 (compliance-driven) 8.3 Leadership Change: Keep Travis Kalanick 3 (negative) 6 (volatile) 2 (toxic culture) 4 (high risk) 4.0 Leadership Change: Appoint Internal Leader 6 (mixed) 7 (continuity) 6 (possible improvement) 7 (moderate risk) 6.5 Cultural Overhaul: Major Reform 9 (very positive) 8 (better retention) 9 (improves morale) 8 (helps with compliance) 8.6 Cultural Overhaul: No Change 2 (negative) 3 (unstable) 1 (very poor morale) 4 (high legal risk) 2.5 Regulatory Response: Full Compliance 8 (positive) 9 (stable operations) 7 (moderate) 10 (minimal legal risk) 8.6 Regulatory Response: Contest Regulations 3 (negative) 5 (short-term gain) 3 (mixed reactions) 2 (high legal risk) 3.8 Expansion Strategy: Global Expansion 7 (strong growth) 8 (sustained growth) 6 (stressful for employees) 7 (moderate risk) 7.4 Expansion Strategy: Focus on Existing Markets 6 (steady) 7 (improved profitability) 8 (lower stress) 8 (compliant) 7.5

9. Explanation of the Scores: Leadership Change: Hiring Dara Khosrowshahi was highly rated, as he brought stability and restored Uber's reputation. Keeping Kalanick would have worsened the culture and risked legal problems, which scored poorly Cultural Overhaul: Major reforms scored high in terms of improving the reputation and morale of employees, despite the challenge of execution. Regulatory Response: Full compliance with laws ensured legal safety, boosting Uber's image, while aggressive contesting of regulations resulted in legal and reputational risks. Expansion Strategy: Global expansion showed high growth potential but came with a cost to employee morale and legal risks. Focusing on existing markets scored well in terms of profitability and stability but with a lower growth trajectory.

10. The highest-scoring decision involves leadership change , cultural overhaul , and compliance with regulations , which collectively address Uber's internal culture, reputation, and legal stability. The lowest-scoring options involve keeping Kalanick or no changes to the culture, which would risk Uber's long-term health and public standing.