Tag Archives: uber

09/24/19

The Cult of Personality and Adam Neumann of We (We Work)

Since time immemorial, American business has always revered the iconic startup leader whether it was John Davison Rockefeller, Sr — American business icon, considered the wealthiest American of all time, and a generous philanthropist; or, the Steve Jobs, Jeff Bezos, Bill Gates stories. Sam Walton was an iconic, successful businessman.

All have a “larger than life” nature to them. They fall into the category of the iconic American business billionaire. These folks, however, come with a full bag of positive and negative traits.

In the modern startup world, we have folks like Travis Kalanik, formerly of Uber, and, now Adam Neumann, of We (We Work).

What we are confronted with is the “cult of personality” wherein the business becomes synonymous with the leader or founder.

This can be good or bad.

In the case of Sam Walton, it is generally perceived as a positive thing. Folksy Old Sam was a gimme-cap-wearing, pickup-driving, Easy-Rider-rifle-rack-shotgun-owner, bird-hunting, bird-dog-loving man of the people from the heartland.

Walmart HQ never left Bentonville, Arkansas, and Bentonville never left Sam.

Sam Walton and his pickup truck at the beginning:

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09/12/19

Uber v the Gig Economy Independent Contractors

There was big news out of California this week that will impact the business model of Uber and Lyft, ride sharing companies who employ their drivers and their vehicles as “independent contractors.”

This employer — employee independent contractor relationship is critical to the business model of both Uber and Lyft.

The issue of whether an employee is a direct employee or an independent contractor has been around for a long time. Long enough that something called the “ABC Test” has been formulated as a way to resolve the nature of the employee relationship.

The ABC Test goes like this:

 1. Is the worker free from the control and direction of the employer (called the “hiring entity” amongst the legal literati)?

 2. Does the worker  perform work for other hiring entities outside the scope of this particular hiring entity’s business?

 3. Is the worker regularly engaged in an “independently established trade, occupation, or business of the same nature as the work performed for the particular hiring entity?”

Uber believes their drivers are independent contractors. If you imagine that a driver works for both Uber and Lyft, the idea that they are an independent contractor is not all that far fetched. But, read on, dear reader. Nothing is ever that simple.

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08/12/19

Growing Your Way to Positive Cash Flow — Uber

I like the ride sharing business and use both Lyft and Uber, probably more Uber. It is very convenient when I have to go downtown for a meeting. It is cheaper than the cost of parking and less stressful.

I am concerned about the prospect of Uber ever — EVER — becoming profitable. You have to ask yourself how a company can come public at a huge value when they are neither profitable nor are they likely to be in the near term.

 

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05/13/19

UBER Surge Pricing

Hail, Uber! Uber went public last week with great fanfare befitting the third largest Initial Public Offering in US history. Hoorah, Uber! All hail Uber!

Then, they ran into reality and reality drowned them with surge pricing.

Uber came public at the low end of the proposed range (already a huge disappointment when compared to the investment bank courtship days) and promptly fell, making it the largest first day IPO loser in US history. Hello, America.

In fairness to Uber, the markets have been reeling with the US-China trade treaty negotiation news and the imposition of tariffs and retaliatory tariffs. [Trump’s fault?]

Lyft — a competitor — was also tanking adding to the cloud over the market and the IPO world.

Nonetheless, Uber has some problems.

Uber shares.

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03/27/19

Anchors Aweigh, Tech IPOs

First quarter of 2019 was a bust for tech Initial Public Offerings. Some blame it on the government shutdown and the inability to get the United States Securities and Exchange Commission to respond to preliminary S-1s (registration document). Fair play to that sentiment.

A company files an S-1, the US SEC reviews it, the SEC provides comments, and the issuer makes revisions in response to the SEC’s comments. Now, your preliminary S-1 has become a final S-1 and you are registered. In two weeks, you can begin banging your drum. If the government is shut down, this process doesn’t happen.

If you just take a Mulligan for Q1-2019 and focus on the rest of the year, you may see a deep lineup of tech companies, familiar names amongst them, getting ready to make the leap.

Here is my favorite recent public offering, demonstrating her flexible approach to the world. Can you reach down and grab your foot while in a seated position? Her name is Tempe and she is a Southern girl from Savannah. But, I digress.

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10/19/18

Uber Uber Uber alles

The hype has begun on the Uber 2019 IPO – initial public offering of stock.

A Wall Street Journal article suggests that underwriters are whispering that the number is $120B – $120,000,000,000.

Of course, this is what’s called the “courtship” proposal — guys (the usual suspects Morgan Stanley, Goldman Sachs) looking for the assignment telling the prospective client what they want to hear to get the job; still it is a huge number.

Uber CEO Dara Khosrowshahi has said the company is aiming for an IPO in the second half of 2019.

New CEO, Dara Khosrowshahi, likes the big number and says, “Bring it.”

Why does this trouble you, Big Red Car, you ask? Let me tell you.

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09/14/18

UBER

Big Red Car here – I don’t qualify for Uber because I’m too damn cute. Sorry, Uber. Doesn’t mean I can’t love Uber from afar. [Been cheating on my Uber-affaire with Lyft. Don’t tell anybody.]

The Bevo loves Uber and the Big Red Car. Big Red Car poses for a selfie with the Bevo on the occasion of beating the crap out of Tulsa. OK, squeaking past Tulsa, thanks, place kicker.

So, what’s going on over at Uber?

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06/7/18

Rebuilding a Reputation – Uber, Uber, Uber

Let’s talk reputation, shall we?

Big Red Car here on a dark and lonely Thursday morning. Hope you are well.

So, today, we talk about Uber’s latest attempts to rebuild its pathetic reputation.

Unless you have been summering over at the South Pole, you know that Uber has replaced its founder/CEO Travis Kalanick with Dara Khosrowshahi.

Uber’s board of directors hopes that Dara K can repair the reputation destruction wrought by Travis K. [Next in the chain of succession is Coach K?]

Read this:

Dara the K, new Uber CEO

That is a hard task. How do you rebuild a reputation which is in tatters? Tatters flavored by lawsuits? Class action lawsuits.

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