Recently, transportation platform, Uber, has been in the news for all of the wrong reasons. We briefly outline some of its transgressions, but more importantly some of the takeaways from those experiences.


Nearly six weeks ago, and in our article, The liberalisation of services via the Internet, we, at ICT Pulse, highlighted Uber’s recent efforts to establish a presence in Trinidad and Tobago, as an example of how the Internet is being used to facilitate the delivery of a broad range of services, and how national policies have not evolved. However, since our article, there have been several reports in the international press on the firm, all of which appear to be early warning signs that Uber could implode. Some of the reports included:

  • claims of sexual harassment by employees, and a workplace hostile to women
  • The firm evading undercover investigators with a fake version of the Uber app
  • an immature CEO, who continually demonstrates poor leadership
  • several executives leaving following past scandals being revealed
  • the shoddy treatment of drivers registered on the platform.

Headquartered in California, and operating in over 500 cities worldwide, Uber is a online transportation platform that uses a mobile/cellular application (app) to connect driver-partners and riders. Currently, Uber is still privately owned, but it has been anticipated that it would go public, although it has yet to realise a profit. However, in light of the recent scandals, an Initial Public Offer (IPO), seems unlikely in the foreseeable future.

In light of the above, and noting the firm is now appears to be in damage control mode, below are four takeaways – so far – we believe can be learnt from the Uber experience.

1.  A scrappy approach must evolve as the business becomes successful

The effort to breathe life into an idea, and to get a venture to the point where it is viable, profitable, and ultimately thriving, is not for the faint of heart. It requires considerable sacrifice from the founders and their team, but also being forceful, dogged, even pugnacious, with some disorganisation  – essentially scrappy – to achieve the desired outcomes.

However, as the business evolves, it ought to be understood that certain behaviour that may be accepted from a young and enthusiastic startup, will not be accepted from a more established operation. For those who still want to maintain (to some degree) a scrappy ethos, even though the business has grown, the trick is to is modify how that scrappiness will be demonstrated, especially in the behaviour and attitude exhibited for and on behalf of the organisation.

2.  Be deliberate in establishing the company’s culture

Sadly, an organisation’s culture is an area very few business owner and leaders give the requisite attention, and more so in the entrepreneurial segment.  In many startups, the founders and the initial team are friends, so there is a very relaxed atmosphere, and also one where the members may feel invested in the project. As a result, there tends to be an all hands on deck and a more communal approach to getting the business on a sounder footing, with very little thought being given to the culture that is being fostered.

However, as the business grows, which may be driven by an urgent demand for skills and manpower, again, targets and deadlines may continue to overshadow the establishment of critical organisational and staff policies. However, the culture – especially the gaps and issues become amplified – as staff numbers increase.

In deciding on the corporate culture that ought to be fostered, it is important for an organisation, among other things, to have a clear picture of what it stands for, what its values are, and consequently, what it should be looking for in its employees, consistent with those values. Further, even in organisations that want to boast of having a (relatively) flat structure, or one that is highly collaborative, the underpinning framework must be carefully planned and implemented.

3.  Strong and competent leadership is crucial

All too often, businesses fail because entrepreneurs (or the founding team) do not have the skills to truly manage the business as it grows and matures. The mindset of entrepreneurs, to possess the wherewithal to build a viable business from nothing, and that of the CEO (or of the executive team), who are required to lead the organisation, is completely different.

The case of Uber is a classic example of what can happen when the founders, who do not possess the requisite skills and experience, remain in charge. In reality though, it is hard to ask founders, who have given their blood, sweat and tears to build their business, to have over the reins to an outsider. It thus requires a certain level of maturity among those individuals to see beyond themselves to the needs of their business, and its long term survival, as occurred with Twitter and Google.

4.  Embrace transparency and accountability

Finally, and following on the maturity of an organisation’s leadership, is the ability to establish systems that foster transparency and accountability. As an organisation grows, the need for order – even in what might appear to be a relaxed atmosphere – is essential.

Quite frequently, information is hoarded by senior management, and the staff who actually need it – to facilitate collaboration, cooperation, and decision making – do not have access to it. In the same way, processes are not put in place, and decisions (such as those related to human resources), appear to be made in an ad hoc manner, which ultimately can affect staff morale and retention.

With regard to accountability, it is not only with respect to performance targets set for staff. It should also include regular assessments of an organisation’s leadership and manner in which the business is being managed – all of which should be aligned with the vision of the organisation and the corporate culture it wishes to foster.

 

Image credit:  James Chao (flickr)

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