Uber Death Watch: Ride-hailing Firm Cuts 3,000 Additional Jobs
Uber Technologies eliminated an additional 3,000 jobs on Monday, closing offices around the world as certain regions revealed less growth than the outfit had hoped for. We covered the ride-hailing firm’s financial situation last week, as reports circulated that it wanted to drop a few billion to acquire Grubhub and enhance its own food-delivery service in the wake of the coronavirus pandemic.
At the time, the firm had already cut 3,700 jobs pertaining to customer support and human resources. Even in the absence of people shunning shared transportation and local governments forcing citizens to stay indoors, Uber’s preexisting inability to turn a profit would probably have forced the company to restructure eventually. The pandemic pinned the accelerator to the floor mat, however, likely forcing additional cuts by the company’s own admission. Considering Uber has already axed about a quarter of its global workforce, it’s probably time to place it on death watch.
Uber Reportedly Wants to Acquire Grubhub
Uber Technologies has reportedly made an offer to buy Grubhub — a food delivery service that links local restaurants directly to customers via a convenient app. Considering Uber Eats is as unprofitable as the company’s core ride-haling business, dropping a bunch of money to acquire a similar business seems silly… until you realize Grubhub is pretty much the only food-delivery outlet to occasionally turn a profit.
Buying up the only legitimate threat to your side business could be wise, even if it’s also somewhat monopolistic, but large, unprofitable tech entities with slick-sounding business plans and massive stock valuation seem bulletproof right now. They can buy up whatever outfits they want and nobody bats an eyelash until an isolated incident pops up that the media can temporarily harp on.
Even with the coronavirus rattling Uber’s share price in March, with ride frequencies more than halved in major metropolitan areas around the globe, its value crept back up in subsequent months. The company also enacted cost-cutting measures, eliminating 3,700 jobs and shuttering 180 driver service centers, with more cuts presumed to follow later this year. While dropping a few billion on Grubhub seems at odds with corporate thriftiness, it may prove beneficial in the long term — especially with investors heaping pressure on Uber to provide evidence it can someday become routinely profitable.
Lyft Follows Uber, Promises to Prioritize Rider Safety
At the start of this month, Uber released a safety report in a bid to address concerns surrounding rider welfare. Not to be outdone, its main competitor also took steps to convince the masses that it’s also doing everything within its power to keep customers safe.
Lyft is forming a council of experts to assist the ride-hailing company in revising safety initiatives for riders and drivers. The group will include representatives from the Rape, Abuse & Incest National Network (RAINN), It’s On Us, the National Sheriffs’ Association, the National Association of Women Law Enforcement Executives, and the National Organization of Black Law Enforcement Executives. As with Uber’s report, Lyft is focused on incidents of sexual assault — and blaming society for any problems it may have.
Newly Released Uber Safety Report Focuses On Sexual Misconduct, Murder
Uber released its first safety report on Saturday, primarily to address concerns surrounding rider welfare. The media has become increasingly critical of Uber as a brand after its corporate culture was dubbed toxic — allegedly loaded with sexism and financial progress by any means necessary. Following a fatal accident involving one of the company’s autonomous test vehicles, many grew fearful that the company hadn’t fallen into the habit of promoting (or appreciating) public safety. Hoping to assuage some of those concerns, Uber put together its own safety report.
Earlier in the month, the ride-hailing service said it had received reports of 3,045 sexual assaults in the United States in 2018, with 9 people murdered (nearly half of them drivers… fortunately?) and 58 crash-related deaths. Uber said these issues only affected 0.0002 percent of the 1.3 billion rides the company orchestrated in the United States that year.
The new study attempts to frame data, accumulated over 21 months, against national averages to show that Uber is simply suffering from issues inherent to our society. While noting that an estimated 44 percent of women in the U.S. have been a victim of sexual violence seems like an odd way to absolve oneself from wrongdoing, Uber’s just a fancy cab service trying to distance itself from systemic fears that may have not have been entirely fair.
Drivers Are Pissed About Lyft's New Partnership With Taco Bell
Taco Bell and ride-hail company Lyft announced plans this week to debut “a unique ride-thru” experience called “Taco Mode,” which will allow patrons to request a pit stop at the nearest Taco Bell location. Lyft claims it’s the perfect option for “passengers seeking the ultimate Taco Bell experience.”
While riders can already request to be driven to the restaurant with some of the worst-maintained bathrooms imaginable, Lyft promises the app makes the overall endeavor of buying fast food “more convenient — and fun — than ever.”
Why would these companies join forces? According to the press release, it’s because they “are two like-minded brands at the forefront of technology and innovation.” Don’t laugh. After all, Taco Bell was the company that realized you could make a taco shell out of fried chicken, while Lyft was the organization that took Uber’s business model and added furry pink mustaches.
They also both serve the late-night community. The restaurant chain provides a “fourth meal” to individuals that are too drunk or stoned to cook and the ride-hailing service keeps them from endangering others by stopping them from operating a motor vehicle. On the surface, it seems like a natural fit for a genius cross-marketing opportunity — until you place yourself into the shoes of the driver plighted to slop these disgusting animals in the backseat.