case study uber

RUNNING HEAD: UBER CASE ANALYSIS ANALYSIS

Uber Case Analysis Christopher Lynch illia! "aterson Uni#ersity $ April $%1&

Intro'(ction:

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UBER CASE ANALYSIS

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In )arch $%%*+ Ubercab ,as -o(n'e' by b(siness partners Garret Garret Ca!p an' .ra#is /alanic0 .hey create' the co!pany ,ith the intention opro#i'in2 an on3'e!an' car ser#ice that ,as a4or'able to a ,i'er client base than the e5pensi#e blac0 car ser#ices that they ha' ha ' (se' in the past Ca!p an' /alanic0 so(2ht to 'o this thro(2h 2i#in2 ri'ers the option to split their costs by sharin2 the 'ri#er that they (se ,ith other people+ th(s !a0in2 it !ore a4or'able -or the!sel#es ,hile not a4ectin2 the botto! line o- the 'ri#er 'ri#er Both Ca!p an' a n' /alanic0 ha' -o(n' s(ccess in pre#io(s en'ea#ors+ ,ith Ca!p ha#in2 been one o- the -o(n'ers o- the pop(lar ,ebsite an' application St(!bleUpon+ an' /alanic0 ha#in2 been a co3 -o(n'er o- a 6le sharin2 ,ebsite calle' Re' S,oosh that ,as sol' -or 71* !illion in $%%& 8)cAlone+ $%19  .he co!pany ,as able to la(nch their pro'(ct pro'(ct in San ;rancisco ;rancisco in (st a co(ple o- ro2(e !e!bers o- the !ana2e!ent tea! ,ho ,ere not -ollo,in2 protocol p rotocol So!ethin2 else that S(san ;o,ler 'escribe' in her blo2 post ,as the e5cessi#ely e5cessi#ely co!petiti#e relationship bet,een the !ana2ers in her 'epart!ent At one point+ she clai!s+ In the bac02ro(n'+ there ,as a 2a!e3 o-3thrones o-3thrones political ,ar ra2in2 ,ithin the ran0s o- (pper !ana2e!ent in the in-rastr(ct(re in-rastr(ct(re en2ineerin2 or2aniation It see!e' li0e e#ery !ana2er ,as 62htin2 their peers an' atte!ptin2 to (n'er!ine their 'irect 'irect s(per#isor so that they co(l' ha#e their 'irect s(per#isorJs >obK 8;o,ler+ $%1& Altho(2h she 'oesn@t clai! to spea0 -or any section o- the or2aniation past the section that she ,or0e' in+ her 'escription o- this se2!ent sho,s the -(rthest thin2 -ro! the -a!ilial at!osphere that !any lar2e co!panies atte!pt to portray portray ne co(l' ar2(e that co!petition is positi#e an' sp(rs inno#ation+ b(t ,hen it escalates to the point o- h(!an reso(rces reso(rces

UBER CASE ANALYSIS

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'epart!ents blatantly 'isre2ar'in2 se5(al harass!ent clai!s+ I 'on@t thin0 that anyone ,o(l' ar2(e a2ainst it bein2 an iss(e Another e5a!ple o- the ,in at all costsK !entality that per!eates the co!pany ,as bro(2ht to li2ht in )arch $%1& Accor'in2 Accor'in2 to a report by the Ne, Yor0 .i!es+ Uber has e!ploye' a tactic calle' 2ray ballin2K in ,hich they ,o(l' (se 'ata co!pile' to a#oi' 'etection by la, en-orce!ent a2encies in areas ,here Uber ,as not allo,e' to operate .he tactics (se' by the co!pany incl('e !a0in2 those ,ho ha#e been i'enti6e' as atte!ptin2 to stop the ser#ice -ro! operatin2 trac0able an' 'isplayin2 -alse i!a2es o- a#ailable 'ri#ers in their #icinity #icinity .he article also 'escribe' ho, the collecte' in-or!ation ,as (se' to 'e#elop strate2ies -or 'ri#ers to operate ille2ally in a !ore s(ccess-(l ,ay It ,as s(specte' by !any that Uber ha' !a'e atte!pts to operate in so!e areas ,itho(t per!ission -ro! local a(thorities+ b(t this 'etaile' acco(nt sho,s that there ,as an or2aniational intent on e5pan'in2 the co!pany@s !ar0et share re2ar'less re2ar'less o- the le2ality o- their tactics 8Issac+ $%1& ther e#i'ence o- this type o- c(lt(re can be seen in the actions o- the CE+ .ra#is /alanic0 In an inter#ie, ,ith a reporter -ro! G+ /alanic0 re2ar'e' re2ar'e' that he has -o(n' !ore s(ccess in his personal li-e since the co!pany too0 o4 by sayin2+ Yeah+ ,e call that Boob3erK So!e !ay ta0e this as an innoc(o(s co!!ent !a'e in >est+ b(t /alanic0 is the !ost #isible e!ployee -or the !assi#e co!pany hile he !ay not ha#e !a'e this co!!ent ,ith the intention o- in=(encin2 others ,ithin the or2aniation+ as

UBER CASE ANALYSIS

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the lea'er+ he is the one that sets the tone -or the ,ay that b(siness is to be 'one -or the co!pany as a ,hole 8Carr+ $%1 (tsi'e o- this inci'ent+ /alanic0 has also 'ra,n the ire o- the p(blic ,hen a #i'eo lea0e' that sho,e' hi! in a heate' ar2(!ent ,ith an Uber 'ri#er 'ri#er In a #i'eo poste' by Bloo!ber2co!+ the CE can be seen s een belittlin2 a 'ri#er a-ter he ,as F(estione' abo(t ,hy the a!o(nt o- !oney that the 'ri#ers !a0e has been shrin0in2 in recent !onths I- this ha' ha ' been a 6rst inci'ent -or /alanic0+ I 'o not thin0 that it ,o(l' ha#e been as i!pact-(l o- a story as it has 2ro,n into hen loo0in2 at this ne2ati#e enco(nter in -ront - ront o-  the bac0'rop o- recent e#ents that ha#e be-allen the s(''enly s(ccess-(l co!pany+ it is 'ic(lt to not reco2nie it as an iss(e ,ith the c(lt(re that is present thro(2ho(t Uber It see!s as tho(2h there are iss(es ,ith an o#er3 a22ressi#e an' rec0less c(lt(re c(lt(re that per!eate all o- the sections s ections o- the co!pany 8Ne,co!er+ $%1& Case Analysis hen st('yin2 the 'istinct aspects o- or2aniational c(lt(re+ c(lt(re+ I -o(n' that there are a -e, 2enerally accepte' pieces that !a0e (p the c(lt(re oan or2aniation In his 1**$ p(blishe' ,or0 on or2aniational c(lt(re+ !ana2e!ent scholar E'2ar Schein o(tlines three !ain layers to a c(lt(re: arti-acts+ espo(se' #al(es an' basic ass(!ptions hen loo0in2 at Uber thro(2h the lens o- Schein@s !o'el+ it beco!es clear that the iss(es that ,ere 'escribe' in the pre#io(s section ,ere 'irectly in=(ence' an' li0ely

UBER CASE ANALYSIS

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ca(se' by the c(lt(re that has been create' ,ithin this ,or0place 8)iller+ $%1?  .he 6rst le#el o- Schein@s !o'el !o'el loo0s at the arti-acts that e5ist e5ist ,ithin an or2aniation .his layer o- the c(lt(re is characterie' by bein2 the !ost #isible part o- an or2aniation that the !e!bers can loo0 to in or'er to 'e#elop an (n'erstan'in2 o- ho, the or2aniation ,or0s In the case oUber+ the o-t3!entione' CE+ .ra#is /alanic0+ best 6ts these criteria Be-ore his recent strin2 o- ne2ati#e p(blicity+ the i!a2e o- /alanic0 has been portraye' as a hero ,ithin the or2aniation His har'3,or0in2 attit('e an' #isible i!a2e as the co!pany p(she' to ne, hei2hts helpe' the co!pany by 2i#in2 e!ployees a positi#e role3!o'el As o- late+ this hi2hly #isible i!a2e has be2(n to ,or0 a2ainst both Uber an' /alanic0+ as the once -a(ltless lea'er has not been able to escape the spotli2ht as his i!a2e has tarnishe' In the sa!e ,ay that this arti-act can ha#e a positi#e i!pact on the rest o- the or2aniation+ it can also ha#e a ne2ati#e one Altho(2h it ,as !ost li0ely not the CE@s intention+ Schein@s !o'el ,o(l' in'icate that /alanic0 an' his p(blicie' ne2ati#e actions ha#e ha' an i!pact on the tho(2hts an' actions o- other !e!bers o- his or2aniation In earlier interactions ,ith e!ployees+ /alanic0 trie' to co!e across as bein2 in -a#or o- ,or0ers@ ri2hts ,hile also pro#i'in2 a lo,3cost ser#ice to (sers o- Uber His recent tira'e a2ainst a 'ri#er is a clear p(blic e5a!ple o- his actions not ,or0in2 in con>(nction ,ith his proclai!e' belie-s In shi-tin2 the bla!e a,ay -ro! hi!sel- an' other !e!bers o- (pper3!ana2e!ent+ (pper3!ana2e!ent+ an' on to the

UBER CASE ANALYSIS

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'ri#ers -or not 'oin2 ,ell eno(2h to !aintain their pay le#els+ he is rein-orcin2 rein-orcin2 the i'ea that those ,ho are the !ost co!petiti#e are the ones ,ho ,ill s(ccee' in the co!pany 8Ne,co!er+ $%1& hen loo0in2 past the !ost #isible portion o- an or2aniational c(lt(re+ c(lt(re+ Schein@s !o'el 'escribes a le#el 0no,n as espo(se' #al(esK .hese #al(es are the i'eals that 2i#e -or! to ,hat those th ose ,ithin the or2aniation o(2ht to be 'oin2 hen atte!ptin2 to (n'erstan' ,hat the !ost i!portant #al(es are at Uber+ it see!s as tho(2h co!petin2 an' ,innin2 top the list hen re-errin2 re-errin2 bac0 to S(san ;o,ler@s ;o,ler@s acco(nt o- her ti!e at Uber+ it is clear that there is no e5pecte' a!o(nt o- sel=essness -or the 2oo' o- the co!pany ,hen it co!es to the #al(es o- !ana2e!ent Her 'etaile' e5planation oho, !ana2ers ,ere constantly tryin2 to (n'er!ine their s(periors is not so!ethin2 that I ,o(l' thin0 is (niF(e to Uber Uber I (n'erstan' that !any people ,ho s(ccee' to the hi2hest le#els o- !ana2e!ent ,ithin a co!pany are o-ten able to 'o so by p(ttin2 their nee's abo#e others+ b(t this see!s to 2o -(rther -(rther ;o,ler !entions that ,hen she ,as in !eetin2s+ there ,as o-ten a !ana2er ,ho ,as openly bra22in2 abo(t ho, they ,ere tryin2 to ta0e so!eone@s >ob at any cost .hro(2h e5a!ples li0e li0e this+ it is clear that bein2 co!petiti#e ,itho(t re2ar' re2ar' -or anyone else is the !ost co!!only share' #al(e that is present ,ithin Uber  .he co!bination o- these arti-acts arti-acts an' espo(se' #al(es a4ect the c(lt(re o- the or2aniation by c(lti#atin2 a co!!on -eelin2 o- hostility bet,een the e!ployees Schein@s !o'el re-ers to these -eelin2s as basic

UBER CASE ANALYSIS

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ass(!ptionsK hile the e!ployees o- Uber !ay not be conscio(sly thin0in2 abo(t tryin2 to (n'er!ine other e!ployees on a constant basis+ their actions sho, that they (n'erstan' that the best ,ay to pro2ress ,ithin the or2aniation is to act accor'in2ly  .his is not to say that this i'ea o- -osterin2 a co!petiti#e co!petiti#e en#iron!ent en#iron!ent 'oes not ha#e its bene6ts hen atte!ptin2 to (n'erstan' ,hy it is that Uber has been able to 2ro, -ro! la(nchin2 in $%1% to bein2 #al(e' at 7&% billion less than se#en years later+ it is (n'eniable that this co!petiti#e at!osphere has helpe' the co!pany s(ccee' It is not illo2ical to spec(late that ,itho(t the co!petiti#e 'ri#e that p(she' the co!pany to (se the contro#ersial contro#ersial 2ray ballin2K techniF(es to a#oi' la, en-orce!ent+ en-orce!ent+ Uber ,o(l' not ha#e as ,i'e reachin2 o- an i!pact as it 'oes to'ay to'ay By re-(sin2 to co!ply ,ith la, en-orce!ent in cities that ha' not appro#e' the ser#ice yet+ Uber ,as able to lay the 2ro(n',or0 that ,o(l' help it ta0e ta 0e hol' once the appro#al process t(rne' in their -a#or At the ris0 o- co!in2 across as too alle2orical+ it see!s as tho(2h Uber has -allen into the trap o- its 2reatest stren2th also bein2 its bi22est ,ea0ness hile the co!petiti#e nat(re that is -ostere' ,ithin Uber ,as #ital to helpin2 the co!pany 2ro, an' s(ccee'+ it is no, contrib(tin2 to scan'al a-ter scan'al (tsi'e o- the contro#ersial re!ar0s an' acco(nts that ha#e co!e o(t o- Uber+ there ha#e also been iss(es ,ith so!e o- their recent e5pansion en'ea#ors Uber is c(rrently bein2 s(e' by Goo2le -or intellect(al property the-t o#er ,or0 that they are 'oin2 to 'e#elop a sel-3'ri#in2 car

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 .his is not the only iss(e that the p(sh -or a(to!ate' a(to!ate' ser#ices has e5perience'+ e5perience'+ as a recently lea0e' report sho,e' that Uber is not nearly as close to bein2 able to i!ple!ent this ser#ice as they pre#io(sly i!plie' i!plie' hile these e5a!ples co(l' be e5plaine' by reasons other than the 'o,nsi'e o- bein2 o#erly3co!petiti#e+ o#erly3co!petiti#e+ it is 'ic(lt to hear abo(t the! an' a n' not attrib(te it to an a n or2aniation3,i'e proble! ,ith their c(lt(re c(lt(re It see!s li0ely that the lea0e' 'oc(!ents sho,in2 poor pro2ress pro2ress co(l' ha#e been e5pose' by a !ana2er ,ho ,as atte!ptin2 to o#erta0e their boss by sho,in2 that they cannot lea' properly 8)cGa(ley+ $%1& hen it co!es to a sol(tion -or the iss(es that Uber is 62htin2+ it is not a si!ple 65 It is 'ic(lt -or an or2aniation to !a0e a -(n'a!ental shi-t in their c(lt(re in 2eneral+ as the c(lt(re is so!ethin2 that is hel' by e#ery !e!ber o- the or2aniation .ryin2 to !a0e a lar2e3scale chan2e in the ,ay that an entire or2aniation thin0s an' acts see!s to be as 'ic(lt as a s tryin2 to 2et a ri#er to chan2e the 'irection that it =o,s in So!ethin2 that !a0es shi-tin2 this e#en !ore 'ic(lt is that by re'(cin2 the intensity o- the co!petiti#eness co!petiti#eness ,ithin the or2aniation+ they ,o(l' be chan2in2 the !entality that helpe' Uber e5pan' in the 6rst place In or'er to chan2e the c(lt(re at Uber+ an' in t(rn+ ha#e a chance at sal#a2in2 the positi#e i!a2e the co!pany once hel'+ there ,o(l' ha#e to be ,i'esprea' chan2es to the three le#els o- the or2aniational c(lt(re ;irst an' -ore!ost+ there ,o(l' ha#e to be a ne, person installe' as the !ost #isible 62(re -or the co!pany D(e to his lea'ership bein2 cre'ite' ,ith a

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lar2e a!o(nt o- the s(ccess o- the co!pany+ I ,o(l' not reco!!en' .ra#is /alanic0 be re!o#e' -ro! Uber entirely .his bein2 sai'+ I ,o(l' s(22est brin2in2 in so!eone -ro! the o(tsi'e ,ho 'oesn@t ha#e the stain o- the recent ne2ati#e e#ents e#ents on the! to ser#e as the ne, CE In or'er to co!!it to reshapin2 the i!a2e+ Uber ,o(l' 'o ,ell to chan2e ho, the e#eryone #ie,s the! in or'er to be2in this shi-t n a #al(e le#el+ I ,o(l' chan2e the ,ay that e!ployees are incenti#ie' It is clear that the or2aniation is -osterin2 this co!petiti#e en#iron!ent en#iron!ent by !any o- the e!ployees ,or0in2 in their o,n best interest Ithe or2aniation ,ere to chan2e their re,ar' str(ct(re str(ct(re so that the s(ccess o-  the parts contrib(tes to the s(ccess s (ccess o- the ,hole+ it ,o(l' li0ely li0ely chan2e the #al(es that the e!ployees hol' as i!portant By chan2in2 the loo0 an' -eel o- the co!pany+ Uber co(l' be2in to chan2e the c(lt(re that e5ists ,ithin its ,alls At the en' o- the 'ay+ I 'on@t thin0 that anyone ,o(l' try to !a0e the ar2(!ent that the co!petiti#e c(lt(re c(lt(re at Uber 'i' not contrib(te to its early s(ccess n the other han'+ it 'oes not appear that !aintainin2 these #al(es as essential ,o(l' be con'(ci#e to b(il'in2 a lon2 ter! an' stable co!pany co!pany Altho(2h stability is not so!ethin2 that !ay be o- the (t!ost i!portance to those in char2e o- the co!pany+ it appears that this c(rrent c(rrent c(lt(re is ca(sin2 !ore ne2ati#e than positi#e in recent years+ an' this c(rrent !o'el 'oes not appear to be s(stainable

UBER CASE ANALYSIS

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Re-erences Carr+ " B 8$%1+ ;ebr(ary $& Me call that Boob3er:M .he -o(r !ost a,-(l thin2s .ra#is /alanic0 sai' in his G pro6le Retrie#e' April $+ $%1&+ -ro! https:pan'oco!$%1 https:pan'oco!$%1%$$&,e %$$&,e3call3that3boob3er 3call3that3boob3er3the3-o(r 3the3-o(r3!ost3 3!ost3 a,-(l3thin2s3tra#is30alanic03sai'3in3his32F3pro6le ;o,ler+ S (ly3 $%193(ber3ran3into3tro(ble3in3h(n2ary $%193(ber 3ran3into3tro(ble3in3h(n2ary3the3co!pany3,a 3the3co!pany3,as3-orce'3to3p(ll3 s3-orce'3to3p(ll3 o(t3o-3the3co(ntry3a-ter32o#ern!ent3le2islation3!a'e3it3i!possible3-or3 it3to3operate3the3!o#e3-ollo,e'3!onths3o-3pr it3to3operate3the3!o#e3-ollo,e' 3!onths3o-3protests3by3ta5i otests3by3ta5i3'ri#ers39 3'ri#ers39

UBER CASE ANALYSIS

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)cGa(ley+