Media Mentions
Business InsiderCNetForbesEntrepreneur On FireWiredThe New York Times
  • Driver Bonuses
    • All Sign Up Bonuses
    • Uber Driver Sign Up Bonus
    • Lyft Driver Sign Up Bonus
  • Insurance
    • Car Insurance for Uber & Lyft Drivers
  • Driver Guides
    • The Rideshare Guide Book (on Amazon)
    • The Rideshare Guide Book (Video Testimonials)
    • Maximum Ridesharing Profits (Course)
    • Maximum Ridesharing Profits (Testimonials)
    • Ultimate Rideshare Guide (Free PDF)
    • Uber Driver Training Guide (Free PDF)
    • Lyft Guide (Free PDF)
    • Business of Rideshare (Free Course)
    • DoorDash Driver Guide (Free PDF)
    • Truck Driving Jobs
  • Vehicles
    • Free Gas App
    • Rent/Lease Car Options
    • Mileage Tracking Apps
  • Resources
    • Uber Driver Information
    • Driver Resources
    • Boost Your Income
    • Mileage Tracker Apps
    • Uber/Lyft Accident Lawyer
    • Employment/Background Report- Consumer Lawyer
    • Taxes Information
    • Driver Products & Services
    • Free Offer & Promo Codes
    • Best Rideshare Apps
    • Best Gas Credit Cards
    • RSG Recommended Reading
  • About
    • About
    • Contact
    • Consulting
    • Driver Coaching
    • Uber/Lyft Job Interview Prep
    • Media Features
  • YouTube
  • Podcast

by John Ince on November 9, 2019 Leave a Comment

Uber Enters New Markets, Trying to Get Its Edge Back

Pin1
Share
Buffer
Reddit
Vote
Share
Tweet
Email
1 Shares

In this week’s roundup, senior RSG contributor John Ince covers Uber’s fighting spirit, a new lawsuit in New York City, and more.

Drive with Uber 1

Uber Fights to Get Its Edge Back  [NY Times]

Sum and Substance:  SAN FRANCISCO — A few days after Uber went public in May and its stock fell into a tailspin, the ride-hailing company’s chief executive, Dara Khosrowshahi, sent a rallying message to employees.

“There is one simple way for us to succeed — focus on the work at hand and execute against our plans effectively,” Mr. Khosrowshahi, 50, wrote to staff in a May 13 email. “We simply would not be here without you.”

Since then, Mr. Khosrowshahi’s message has steadily become tougher.

Faced with questions about whether Uber can make money and a souring environment for unprofitable tech firms, Mr. Khosrowshahi has laid off more than 1,000 workers in three rounds of job cuts. He has ousted some top executives, and board members have left. And in recent emails to employees, he has said Uber’s teams are “too big,” are producing “mediocre results” and that the company “needs to get its edge back.”…

My Take:  Uber’s got problems, and this is as good a summary as you might find out there.  What are the initiatives at work now? Who are the key players? And so on.  It’s an interesting read, and well worth your time.

Uber for years shortchanged nearly 100,000 drivers: lawsuit  [DailyNews]

Sum and Substance:  The millionaires who run Uber for years illegally stole millions from of thousands of working class drivers in New York City, a class action lawsuit filed Wednesday alleges. The lawsuit claims the company did not pay taxes it took out of drivers’ pay for nearly four years. The plaintiffs argue that Uber violated its own complicated employee agreements, and effectively robbed them of wages they desperately need.

Uber has previously admitted to deducting sales taxes and a surcharge for a worker’s compensation fund from payments to drivers. The suit argues that customers are supposed to pay those fees, not employees.

Rides that travel across state lines are also legally exempt from sales taxes, the suit states.

The class could cover as many as 96,000 drivers, according to the New York Taxi Workers Alliance, the organization that filed the suit…

My Take:  I can’t comment on the legal case here, but this doesn’t look good.  There are so many ways that Uber can cause confusion in the pay scheme.  Here, it was taxes…

Uber’s Disappointing Quarter Sets The Stage For A Sell-off Ahead Of Wednesday’s IPO Lock-up Expiration [Forbes]

Sum and Substance:  It’s tempting to include a pun in the lede of an article about Uber Technologies, Inc., but running late/breaking down/getting stuck in traffic, etc. would not adequately describe the value destruction at this company since its IPO on May 9th.  Uber shares are falling in after-hours trading after reporting third quarter results that were a mishmash, but the cash outflow certainly hasn’t stopped. …

So, investors who bought at Uber’s IPO price have seen more than a 33% decline in value since May 10th, the first day of public trading for Uber shares, but the pain lies even more deeply for some of Uber’s longer-term backers.  Uber’s market capitalization, based on after-hours pricing, has fallen just under $50 billion. That it was $78.2 billion on May 9th is easy to figure, but the bigger issue for Uber holders is the pre-money valuation accorded this company. …

My Take:  Well, the lockup came and went.  Meanwhile Uber’s stock price actually went up almost 2% on the day when people could start selling their shares.  I guess it was priced in.

Uber is entering the ads business  [Techcrunch]

Sum and Substance:  Uber will become an ad platform, selling space inside its Eats app to restaurants hoping to lure in more food delivery orders. A recent Uber job listing spotted by TechCrunch seeks an Uber  Eats Ads Lead “to lead the team and efforts responsible for creating a new ads business that enables eaters to discover new foods and restaurants to grow their customer base.”

An Uber spokesperson confirmed the company would be entering the ads business, telling TechCrunch, “We are exploring relevant ads in Eats.” Selling ads could help it improve margins on Eats, where it only takes 10.7% of gross bookings as adjusted net revenue because it pays out so much to restaurants and drivers.

My Take:  Now Uber is in the advertising business.  I’m not sure why, except that they’ve got to do something with the money they’ve got and advertising is something that they haven’t really tried yet.

Uber founder Travis Kalanick has reportedly raised $400 million for his next act from Saudi Arabia. He’ll be competing directly with his old company.  [Business Insider]

Sum and Substance:  Uber’s ousted founder Travis Kalanick quietly raised $400 million from Saudi Arabia for his food-delivery startup in January, The Wall Street Journal reported Thursday.

It’s the first known investment by the kingdom since its murder of American journalist Jamal Khashoggi last year.

Delivery-only restaurants are a hot topic right now, not only by startups but by Kalanick’s former employer too.

According to The Wall Street Journal’s Rory Jones and Rolfe Winkler, the billionaire quietly raised $400 million Saudi Arabia’s sovereign-wealth fund in January, in a deal that values CloudKitchens, a delivery-only restaurant company at $5 billion.

My Take:  Just keeping up with former Uber CEO Travis Kalanick.  He raised $400 million, and I can’t figure out why he needs that when he’s worth over $5 billion.  I guess it’s better to gamble with other people’s money.

Readers, what do you think of this week’s roundup?

New Uber Drivers Get Guaranteed Earnings!

UberSign up with Uber now and get up to $1,000 in guaranteed earnings depending on your market! Sign up here using my referral code today and start driving today. Check with Uber for guaranteed earnings amounts by city.

-John @ RSG

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profile

John Ince

John Ince is a former Fortune reporter and Wall Street banker. He has about 1,000 rides under his belt driving part time for Uber and Lyft.  He’s writing a book about his experiences entitled:  Travels With Vanessa:  A Rideshare Driver Tries To Make Sense of It all - For a sneak peak visit the link above.
My Twitter profile

Latest posts by John Ince (see all)

  • The Free-Wheeling Days of Uber and Lyft Are Over - December 7, 2019
  • Uber Strives to Find an Acceptable Safety Policy - November 30, 2019
  • Most Rideshare Passengers Don’t Tip – But Drivers Aren’t Surprised - November 23, 2019
Pin1
Share
Buffer
Reddit
Vote
Share
Tweet
Email
1 Shares

Filed Under: Roundup

← The #1 Common Driver Scam – Don’t Fall for This! The Best Audiobooks for Rideshare Drivers →

About

I'm Harry, the owner and founder of The Rideshare Guy Blog and Podcast. I used to be a full-time engineer but now I'm a rideshare blogger! I write about my experience driving for Uber, Lyft, and other services and my goal is to help drivers earn more money by working smarter, not harder. Read More…

Join our e-mail list today and we'll send you a free PDF copy of The Ultimate Guide To Being A Rideshare Driver!

Follow me on Social Media!

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube
Maximum Ridesharing Profits Banner Ad

Categories

driving for uber and lyft

Blogroll

  • Maximum Ridesharing Profits
  • Your PF Pro
  • The Four Hour Work Day
  • The Frugal Farmer
  • Harry G Campbell

FTC Disclosure

Please note that The Rideshare Guy has financial relationships with some of the merchants mentioned here. The Rideshare Guy may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant. As an Amazon Associate I earn from qualifying purchases.

Sign up Bonuses: All Sign Up Bonuses | Uber Driver Sign Up Bonus | Lyft Driver Sign Up Bonus

DMCA Copyright © 2019 The Rideshare Guy. All Rights Reserved.