Question #2
Uber stores every single ride it has provided and uses this data for other purposes, including surge pricing, driver notices, and so on. To which of the seven challenges to being an exceptional manager is this activity most closely related?
A.
Challenge 3: Managing for diversity. Companies should work to capitalize on the opportunities inherent in today’s incredibly diverse workforce. But recent news indicates that Uber, much like many other tech companies, has very little diversity in its full-time workforce. Moreover, workers have spoken out about an alleged hostile and sexist work environment at Uber. We will explore these issues along with what Uber’s new executives are doing to change the company’s diversity profile. We will also discuss major changes to Uber’s diversity- and inclusion-related HR practices, including interviewing, training, and performance reviews.
B.
Challenge 4: Managing for globalization. Globalization presents many opportunities but also many challenges. Uber has worked furiously to compete internationally and has encountered successes and troubles along the way. We will discuss the regulatory, legal, and cultural issues Uber has faced as it has expanded into international markets and what the forecast is looking like for Uber’s global market share.
C.
Challenge 1: Managing for competitive advantage. Uber has historically had little trouble outperforming its competitors, but since 2017 the company has lost substantial market share to Lyft, its primary competitor, and has seen its valuation drop from $70 billion to $48 billion. We will explore what Uber is doing to remain competitive, including how it is working to attract and retain top talent, innovate new technologies, and repair its reputation.
D.
Challenge 6: Managing for sustainability. Being green is no longer a choice for organizations—it’s a necessity if a company wants to be competitive. Some recent data suggest that transportation network companies like Uber have actually put more cars on the road rather than decreasing the number of vehicles, and therefore, emissions. Furthermore, competitor Lyft may be winning the reputational race for the title of the more socially responsible company. But Uber has interesting ideas in play, including a partnership with NASA to develop flying electric cars. We will explore these things in detail throughout the case.
E.
Challenge 5: Managing for ethical standards. Dealing effectively with ethical challenges is difficult for any company. For Uber this is especially challenging given its size, speed of growth, international presence, and a regulatory environment that struggles to keep up with dynamic business and technological innovations. We will explore many of the ethical dilemmas that Uber has faced, including self-driving cars, the Alphabet lawsuit, and Greyball software.
F.
Challenge 2: Managing for information technology (IT). Technology was the foundation of Uber’s differentiation as a company and, thus, its success. We will discuss how the company is using IT to make decisions, motivate its drivers, and innovate. We will also explore the challenges that Uber has faced in its use of IT including its controversial use of geofencing and other customer-targeted technologies.