Uber is currently facing issues in regards to work place culture, reputation, and legal and criminal
investigations. Employees of Uber are considered independent contract workers, which means Uber does not
have to pay minimum wage, overtime, worker’s compensation insurance as well as other benefits. Uber does
not classify drivers as employees, and would have to radically change their business model if forced to.
Employee satisfaction with Uber is at an all time low and will continue to decline due to Uber reducing
incentives for drivers. Uber has been aggressive in it’s growth and has failed to prioritize compliance and
transparency within the organization. Uber has faced allegations of sexual harassment and gender
discrimination, and acknowledges the toxic workplace and the difficulty in recruiting attract high quality
employees.
Ubers legal issues continue to mount at a fast paced rate with California regulators hitting Uber with a $59
million fine for refusing to provide full information regarding sexual assault and harassment claims. California
has taken legal action against Uber for not classifying drivers as employees and a California judge has ordered
employee classification. New Jersey has joined California in a similar lawsuit. Uber has lost its license in
London due to safety issues.
The firestorm with Uber is extensive and ongoing. They are losing money and have found themselves in a
detrimental situation. I think that Ubers Ceo Travis Kalananick was extremely aggressive and competitive, and
did not create functional internal processes and structure within the business plan, if there was a business plan
at all. It was all about making money, and it seems their house of cards is coming down.