Coronavirus Is Forcing Uber Back To Its Start-Up Roots
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 Published On Dec 2, 2020

Nothing has ever been typical about Uber. Coronavirus is forcing Uber to return to its start up roots.

A maverick at birth, Uber embraced rule-­breaking as a business model, what with its catch-us-if-you-can flouting of local regulators. It expanded globally long before it saturated its home market. It lost money nearly as quickly as it raised it. The startup changed out its CEO and much of its management team, and then its board of directors—all before becoming a public company.

Now, in its first year of eligibility and only the 11th of its existence, Uber has joined the Fortune 500. Given the devastating effects on its revenue of a global pandemic that has pummeled its passenger-trip volumes by 80%, Uber might well fall off the list next year—which certainly wouldn’t be typical.

Indeed, as a result of the crisis, Uber has been forced to undergo a reset even more traumatic than the one that followed the ousting of its mercurial CEO, Travis Kalanick, in 2017. At the beginning of this year, the company had signaled it could make profits in its ride-hailing business—and just about nowhere else. Its fast-growing Uber Eats restaurant-meal delivery business was hemorrhaging money. Experiments from self-driving cars to flying taxis to a freight-­forwarding service accounted for hundreds of millions of dollars of losses. A bike and scooter business it bought in 2018 was in no better shape.

The pandemic changed everything. Suddenly food delivery became Uber’s near-term savior. Uber made moves that would have been unthinkable in its bad-boy era, like cleverly and empathetically urging riders to stay home. It offered financial and job-hunting assistance to drivers, with whom it has long had a love-hate relationship. And faced with the reality of a shriveling business, Uber moved aggressively to prune products, locations, and people in ways that were long overdue.

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