Uber CEO Travis Kalanick resigns: What went wrong? -

Uber CEO Travis Kalanick resigns: What Went Wrong?

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Uber CEO Travis Kalanick resigns: What Went Wrong?

According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn.

Here are 8 founders that ruined their companies

  1. Dell, founded 1984. …
  2. Chesapeake Energy, founded 1989. …
  3. Martha Stewart Living Omnimedia, founded 1997. …
  4. BlackBerry, founded 1984. …
  5. Countrywide Financial, founder 1968. …
  6. Groupon, founder 2008. …
  7. American Apparel, founded 1989. …
  8. Best Buy, founded in 1966

Now you might be thinking what is the reason that led them to failure? Well, as per Jim Collins in his book Good to Great, companies fail due to poor management. And this is exactly what Uber was facing from a past year or so. Uber battled more than 70 lawsuits in federal courts.

Here are some of the lawsuits that made it to the general public

In case you can’t keep track of all of Uber’s challenges — and you’re not alone — here’s a closer look at some of the most significant and controversial lawsuits the company currently faces in the U.S.

Uber CEO Travis Kalanick resigns:

Employee benefits

In one of the biggest ongoing class action lawsuits, drivers have accused Uber of misclassifying them as contractors when they’re actually treated as employees.

The New York Taxi Workers Alliance, a union representing 5,000 Uber drivers, filed a suit in federal court against Uber on behalf of 10 drivers for misclassification. That proposed class action suit claims drivers are employees and therefor eligible for minimum wage, overtime and expense reimbursement.

Termination

In Austin, Texas,  multiple drivers are suing Uber and Lyft for back pay and benefits after the companies abruptly stopped service in the city. When the ride-sharing companies lost a vote that would have required stricter background checks, they ceased service in the city a day later. Drivers claim they should have received more notice and are asking for back pay and benefits.

Passengers vs. Uber

Insisting drivers are contractors and not employees can also limit Uber’s liability when individual drivers do something illegal. However, that hasn’t stopped riders from naming Uber in numerous state and federal lawsuits.

Accessibility

Uber has  reached a preliminary settlementwith the National Federation of the Blind, which sued the company for discriminating against passengers with service animals. There were reports of drivers refusing to pick up passengers and one incident where a driver locked a service animal in the trunk. As part of the class action settlement, Uber will require drivers to take service animals and suspend drivers who refuse.

Price Fixing

An Uber passenger has  filed an antitrust lawsuit against Uber and its CEO Travis Kalanick for price fixing. Conservationist Spencer Meyer claims Uber colluded with drivers to raise prices, and is seeking class action status.

Safety

There have been multiple complaints against Uber drivers over assault, rape, and car accidents. Many of the cases ultimately circle back to issues with Uber’s background check policies, and whether or not Uber is responsible for the actions of contractors.

Two women are suing Two women are suing the company for fraud and punitive damages after being sexually assaulted by drivers in unrelated incidents. In May, a judge denied Uber’s claim that it couldn’t be held responsible for the drivers’ behavior because they were contractors, which could have larger implications for similar lawsuits.

There are just a few reasons why the stakeholders forced Travis to resign. But the main difference between a leader and a boss is that, a true leader is loved by its employees, which is in the case of Travis. The employees are protesting and calling the CEO back. This is a good sign for the company. A leader which the people trust. But on the other hand there are these mistakes mentioned here which cannot be over-looked.

Muneeb Qadar Siddiqui
Muneeb Qadar Siddiqui
Muneeb Qadar Siddiqui is a blogger/Social Media fervent. Nestled in the heart of digital cosmos, of course not married (for now, at least!) but his first love is blogging on digital marketing, web design & development, corporate branding, and e-commerce solutions. Fused with passion and astronomical view of the digital galaxy. Muneeb loves to connect with fellow bloggers and share ideas that work. For awesomeness do connect with him: Facebook |Twitter |Linkedin