Being a CEO is not easy and glamorous as the title sounds. Not at least when the company is besieged by innumerable scandals and mounting losses. When Dara Khosrowshahi took the wheels as the CEO of Uber, the embattled ride-hailing company, I couldn’t help but wonder how will handle the not-so-magical title bestowed upon him. Dara literally inherited a real mess from the Kalanick era. From regulatory hurdles to sexual harassment complaints, data breach, a bombshell lawsuit on trade secrets, alleged usage of duplicitous software, and burgeoning losses, the challenges to deal with were insurmountable. But the CEO of the scandal-ridden company made a commendable move and won our hearts by settling the self-driving car dispute with Waymo. Despite paying a whopping $245 million, Dara added a huge feather to his cap. He cleaned up a potentially devastating lawsuit and eliminated the biggest roadblock on Uber’s ambitious move towards the promised 2019 IPO. The decision burnished the new CEO’s ability to salvage the battered reputation of the ride-hailing giant. By closing a crucial funding round with Softbank, he gained another significant achievement to his credit. It’s the second biggest feather in a short span of five months.
The troubles are far from over. The company’s full-year loss widened to a mammoth $4.5 billion in 2017, however, its revenue jumped 85% when compared with 2016.Uber still faces uphill battles in many countries. But his initial steps have proven beyond doubt that Dara is willing to learn from past experiences and is ready to instill the lessons for a better future. He is capable of cutting down the losses and helping the company sail through the turbulent times with ease. He knows how to play safe and rebuild bridges of trust, loyalty, and compliance. The Waymo settlement is a clear example of his low-risk approach, which I believe is the need of the hour. The introduction of eight “cultural norms”, six hours mandate breaks for drivers, willingness to make concessions, and so on, indicate a welcoming change from the once antagonistic approach of the company. Dara is gradually putting out the fires and clearing the path with diligence and perfection.
Every company has varying faces and diverse leaders with unique approaches. Kalanick brought the company to where it is now. But his relentless drive to succeed gradually transformed into an aggressive and abrasive leadership that drove the company to a damaging path. Many of their problems were self inflicted. Dara has come in with a mature decision-making ability as well as transparent and balanced communication skills. The company now has a mature leader who believes in learning from mistakes, paying attention, and initiating fruitful conversations with riders, drivers, and regulators. Their open apology and warmer stance indicate the possibility of newer discussions with Transportation for London. Uber had lost its London taxi license at the fag-end of 2017.
Can Dara help the company regain its lost glory? Given the quick and effective steps that he’s taken over the short span of five months to repair the company’s image, I feel Dara, an executive with a clean reputation and impeccable business track record, might soon clean up the mess and restore the image and financial stability of the ride-hailing company.