Question

What were the legal challenges faced by Uber and how did they affect the company's operations?

Uber has faced numerous legal challenges globally, which have significantly impacted its operations. Some of these include issues related to driver classification, where Uber has been accused of misclassifying drivers as independent contractors rather than employees, leading to lawsuits and regulatory scrutiny. Additionally, Uber has faced allegations of intellectual property theft, particularly in relation to self-driving car technology. These legal issues have led to reputational damage, financial losses, and changes in leadership and company culture. For instance, the pressure from shareholders led to the resignation of founder Travis Kalanick as CEO.

This question was asked on:

A syndicate of Uber's largest shareholders, Benchmark, Lowercase, First Round and Menlo, who held nearly 25% of Uber's stock, gave an ultimatum to Kalanick to step down by 6 PM the same day. If he agreed, he would get a graceful exit. If Kalanick refused, the investors would go public, and their letter would land on the front page of the New York Times. Kalanick was initially furious, but when he realized the number of investors behind the plan, he agreed to step down as CEO and continue on the board.

View book summary Preview