A Bumpy Road To The Uber IPO?

Thinking of calling for a ride to Uber’s IPO in New York City? Not so fast. Although it is coming, it can take some time.

That’s what the new Uber CEO told employees at a hands-on meeting in San Francisco days after taking the job. Stating it could be within the next 18 to 36 months, Uber’s new CEO Dara Khosrowshahi made the comments at an all-staff meeting in San Francisco where he also emphasized the company culture would have to go, and then be rebuilt.

Khosrowshahi took over the top spot at Uber after leaving Expedia, where he served as CEO since 2015. An Iranian-American, Khosrowshahi is known for running and growing Expedia into the largest online US travel agency.

"This company has to change,” Khosrowshahi said according to a tweet by Uber’s Communication’s Twitter account, “What got us here is not what's going to get us to the next level."

The task of the turning the company’s culture around will not be an easy one for the new CEO. One of the biggest challenges Uber faces with an upcoming IPO will be pleasing a class of workers integral to the day-to-day Uber operation, but most importantly the Uber name: the drivers. Uber has a strained relationship with its drivers due to raising the percentage rate Uber takes on each ride, and over-exaggerating the amount Uber drivers can actually make.

In a lawsuit filed by Michael Hood, a former Uber driver, Hood argued he sometimes made less than minimum wage, and was incorrectly classified as an independent contractor as opposed to an employee. A judge recently allowed the case to go forward as a nationwide class-action.

In an attempt to repair the flawed relationship, Uber met with the SEC over the idea of giving company equity to their drivers, and is awaiting approval on the program.

Khosrowshahi will also be tasked with bringing on many top level executives at Uber, as those positions have been empty due to one controversy or another. After reports of Uber using a special program called Greyball to detect and prevent certain regulators from using the service, Uber quickly terminated the program, but not quick enough before the US Justice Department launched a criminal investigation into Greyball. Uber was also the subject of #deleteUber, a social campaign to delete the app, after accusations of Uber raising their prices, or “price surging,” for those users protesting President Donald Trump’s immigration ban at airports. Moreover, a lawsuit over Uber stealing trade secrets from Google’s elf-driving program, Waymo, is heating up as it makes its way through the courts.

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Sandy Newman 2 years ago Member's comment

When will there be an #Uber IPO?

Weed Investor 1 year ago Member's comment

Sounds like the government shutdown is causing problems with the Uber IPO - wccftech.com/uber-ipo-on-the-rocks-as-us-shutdown-rolls-on/

Gus B. 2 years ago Member's comment

A bumpy road is an understatement.

Bill Myers 3 years ago Member's comment

Good read, thanks.

Alexis Renault 3 years ago Member's comment

Socially responsible riders should use #Lyft or another ride service over #Uber. Together we can make Uber's path even bumpier than it is already!

Barry Hochhauser 3 years ago Member's comment

A bumpy road indeed. Being sued by your own board of directors is likely problematic. Not mention how #Uber was recently banned from the UK.

Tempest 3 years ago Member's comment

All the sexual harassment and sexual discrimination claims don't help either.

Weed Investor 3 years ago Member's comment

Yes, with all the problems the company and founder are facing, I would say #Uber's days are finished Except... users love the company too much to give it up.

Angry Old Lady 3 years ago Member's comment

It is amazing what users will put up with to save a few bucks. #uber