California took on the gig economy by passing updated labor laws (Assembly Bill 5) mandating companies treat contractors more like regular employees. Some predicted this would be the death knell for ride-hailing firms like Uber and Lyft, who are entirely dependent on them for their daily operations. Worse still, these companies remain unprofitable despite most of the the physical expenses being pushed onto drivers — who remain responsible for the upkeep of their own vehicles after receiving their cut of the fare.
Earlier this month, Uber CEO Dara Khosrowshahi published an op-ed in The New York Times suggesting contractors deserved better, but current circumstances dictated that the situation remain largely unchanged. He later suggested the service might have to leave California as it restructured its business model to appease new rules, saying it had to reclassify drivers as employees with all the accompanying benefits (paid leave, minimum wage, unemployment insurance, etc). San Francisco Superior Court Judge Ethan P. Schulman said that would be fine last week when he ruled that Uber and Lyft drivers were essential to operations and could not be treated as tangential to the business. He wanted to be absolutely clear that exemptions would not be made for ride-hailing firms, stating that it was “high time that they face up to their responsibilities to their workers and to the public.”
Uber lost $8.5 billion in 2019, making it difficult to envision a future where it can begin offering more to its drivers. But it also doesn’t want to lose out on market share as the industry jockeys for position. There needs to be another solution.
What about moving to a franchise model?
Uber CEO Dara Khosrowshahi says he expects the company to have its own autonomous cars within a year but, since the company doesn’t build cars, it needs to partner with one that does. Until now, the company has been in bed with Volvo Cars, previously stating its intention to purchase 24,000 self-driving XC90 SUVs from the brand between 2019 to 2021.
However, the relationship between the two firms isn’t exclusive or binding. That means Uber can still play the field, and may have already found a friend with benefits in Japan.
On Thursday, Khosrowshahi posted a photo on Twitter of himself laughing with Toyota Motor Corp. President Akio Toyoda and Executive VP Shigeki Tomoyama at the automaker’s headquarters. “Having fun with Akio-San and Tomoyama-San @ToyotaMotorCorp HQ,” he wrote. “Great discussions about growing our #autonomous partnership and lessons 4 me in building a great culture. And yep, those are Ichiro [Suzuki’s] bats.”
It seems Toyota could be the side piece Uber is looking for.
Uber Technologies Inc.’s chief executive, Dara Khosrowshahi, predicts a nearish future where civilians whiz around in sky-bound automobiles.
“There will be people flying around Dallas, Texas,” Khosrowshahi said at the Digital Life Design conference in Munich, his first work-related appearance in Europe since taking over as Uber’s CEO last year. “I think it’s going to happen within the next ten years.”
Considering we’ve been waiting on flying cars for roughly 100 years, what’s another decade?
We’re kidding, of course. Anyone with a modicum of common sense understands that mass-produced floating automobiles are pure fantasy. Work on such vehicles hasn’t really progressed all that swiftly and there’s been no breakthroughs in the technology, either. The best anyone seems to be able to do is build massive drones ( which crash) or automobiles that can be converted into airplanes.
Does that make Khosrowshahi a bearded liar?
Uber Technologies has chosen Expedia’s Dara Khosrowshahi to run the global ride-hailing firm now that ex-CEO Travis Kalanick has been twice ousted from his executive role. While Uber confirmed it has named a replacement, it declined to make specific reference to Khosrowshahi, saying the board would inform employees first. Likewise, Expedia has not yet confirmed that its current CEO is leaving.
Hoping to distance itself from numerous scandals, Uber has vowed to end what many have called an unsavory corporate culture. As the company’s co-founder, Kalanick enjoyed sweeping authority on the board and has been frequently blamed for its misdeeds — primarily due to his encouraging of an unstructured, dog-eat-dog mentality among the staff. This may have something to do with the surprise choice of Khosrowshahi. As a former Iranian refugee, he is extremely critical of the Trump administration’s travel ban and has received praise in the media for his progressive politics.