The ride-hailing service made its CEO walk the plank, but will that be enough to make for a smooth ride? Please vote and stay for the top links and haiku.
Travis Kalanick, the chief executive of ride-hailing service giant Uber, was forced to resign this week after months of scandal including allegations of sexual harassment, discrimination and executive misbehavior, as well as criticism of the company’s pirate-like culture. But will that be enough?
The moved divided the ranks of Uber’s (real) employees. About 1,000 out of 12,000 have so far signed a petition to bring Kalanick back. That’s unlikely considering that the company’s institutional investors had clearly had enough, demanding his ouster. Most who work for Uber are gig-worker drivers, who disliked his prohibition on tips — something the company just reversed.
Uber lost $991 million last year, even though bookings continue to grow, and investors are impatient for profits. Beyond the finances, this is a company based on breaking the rules — trying to avoid the same standards for its drivers that must be followed in most cities by taxi drivers. The Harvard Business Review, not known for screaming radicalism, bluntly stated, “Uber can’t be fixed — it’s time for regulators to shut it down.”
What do you think? As always, I welcome your insights in the comments section.
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This Week’s Links:
• African-American intergeneratonal economic mobility since 1880 | Washington Center for Equitable Growth
• The rise (and fall?) of the cost of education | FRED Blog
• Free markets need equity | Stumbling and Mumbling
• Low interest rates and bank profits | Liberty Street Economics
• Don’t raise the debt limit — repeal it | The Wall Street Journal
• Unions in decline: Some international comparisons | Tim Taylor
Today’s Econ Haiku:
Glad the U.S. went
To another Paris deal
That’s the air show, Don