Problems at Uber continue. It’s not even angry traditional taxi drivers seeking to prevent passengers from saving money by using Uber’s online service. The problems now stem from a leadership crisis, CNN Tech claims.
This innovative company is facing leadership depletion. Uber’s Senior Vice President, Emil Michael, has just left after accusations of harassment. In the recent past, other top executives have left the company for various reasons.
“Uber is a company without a COO, CFO, CMO and soon to be SVP of Business,” stated James Cakmak, an analyst at Monness, Crespi, & Hardt.
Among the former top execs, only the CEO, Travis Kalanick, is still with the company. This lack of top brass is of concern as the company employs directly 14,000 people and works with more one a million drivers.
Meanwhile, the competition is taking notice. A major competitor, Lyft, has just raised $25 million from Jaguar Land Rover. These two companies will work on testing self-driving cars. Perhaps, soon we’ll be able to order driverless taxis with mobile phones.
Lyft is heading in other directions as well. The company has expanded to 150 new cities this year alone. In the first quarter of 2017, Lyft has seen the number of rides increase by 240% from a year earlier. Overall, there were over 70 million rides in the first three months of this year.
What’s more, Lyft has also entered into partnership deals with General Motors and Waymo related to autonomous vehicles.
Currently, Uber is still bigger, but Lyft is catching up. In terms of valuations, Uber is valued at $68 million, while Lyft’s value is estimated to be $7.5 billion.
When it comes to driver satisfaction, research suggests Lyft’s drivers are more satisfied and make more money as well.