The book recounts Uber’s start from 2009 up until the IPO in 2019. It chronicled the meteoric rise of the taxi/car sharing service across the world and the various issues it encountered under the controversial Founder, Travis Kalanick.
What do the book hints at the reasons for their early success?
- Courage to go up against the transportation law that they believed protected the incumbents. When government could not keep up with technology, some startup needed to break the boundary
- Autonomy-driven structure. Allows individual General Manager to customize their service in a given city. Uber was able to portray itself as on the good side versus the bad
- Timing. With Apple newly creating its iphone and app ecosystem, Uber was able to ride the wave of in-phone app and massive adoption
- Willingness to play dirty. Uber did not shy from using all sorts of tactics to stay ahead against the government or its rival
- Hard-working culture: Kalanick’s workaholic nature rubbed off on the company
And what do the book share as the reasons for their unraveling?
- Founder unchecked: Kalanick was able to structure the company so he controlled all the power. This allowed his flaws (lack of empathy, contempt for structure, infatuation for growth at all cost) to permeate the company leading to the many scandals and controversies that befell the company in its later year. He never had someone who could convince him to adapt and grow up
- Weaponization of culture: Because of its weak governance, it magnifies the worst instincts of many of the employees who were free to be destructive, poisonous and value-destroying as long as they showed continued growth. The autonomy given turned into cutthroat culture and aggression
- Strategic over-extension: Its initial success convinced Kalanick to expand quickly around the world which burned a lot of money
- Failure to grow up: They deprioritized Human Resource and Operations. This led to weak governance and widespread abuse
Whenever we talk about a new 2-sided platform nowadays, the easiest explanation is to call it the Uber of X. This is how influential the company is in our modern life. The author gives an unbiased look into the positives and negatives of the firms and is respectful of the human stories told. This is ultimately an inspiring story of what it takes to create such an iconic business but also a warning of ignoring the culture and people aspect and let that catastrophically slide.