New CEO Dara Khosrowshahi is cleaning house after the departure of Travis Kalanick. But after a disappointing IPO, Khosrowshahi has to boost the company’s ailing financials and fight against lawmakers who are siding with aggrieved drivers.
Then COVID-19 hits. Uber and Lyft are faced with a crisis that could alter ridesharing forever. Khosrowshahi leans into Uber Eats, while John Zimmer and Logan Green struggle to keep their dream alive.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Verbatim.
Me. Eight, twenty nineteen long Island city
people who drivers gather on the sidewalk outside which New York headquarters includes there. Yet
the bull horns and holding signs that say: invest in our lives not in their stocks and Bernard Mix, equals poverty for us in billions for them and just two days who
you go public in a deal. That's expected devalue the company at eighty, two billion dollars driver
feel like they long carried the company's financial burden, but this ip yo see
like it's gonna, be everyone's payday except theirs, and their fed up, so their striking
two thousand miles away in San Francisco goobers
Yo Dora cause. We're shy, can barely here himself think his
glory. Goobers IP is less
forty eight hours away. If it goes exceptionally well, he
personally met upwards of one hundred million dollars, destroying
fine tune. His speech,
the blaring horns of a brass band, and the shouts of protesters are drowning out his thoughts
He peered out a large window at market street. The crowds have quadrille
since he last Jack
speak. Several hundred drivers now he's
He's the anger in their scowling faces. He looks
way and turns to his top the our deputy
how bad is it pretty bad? The strike is gone. Global
Paris, London, in Melbourne. It's happening in every city, there's some
drivers in the next, but its most
the anti labour rhetoric were giving
bonuses. More than a million drivers are getting. Bonuses descended
the contractor issue just won't go away. You see
long, goobers categorized its drivers as independent contractors. It means the key
when he isn't liable for paying their workers compensation, sick leave or health care benefits, no matter how many hours they work and that lets the company
again cash
two days later, when Goober finally does go public, it's a flop, millions
people might use goober, but they don't want to
start at the end of its work.
Day of trading goobers stock closes below forty two dollars. A share down
the eight percent from where it started.
Cause Russia, he's ticked, Travis Calendar
him with a mess. Now he has to
the companies, ailing financials and fight against lawmakers, who were siding with aggrieved drivers and you'll have to do it well
during a through a crisis
alter ride, sharing forever support, for this
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In our last episode, Goober nearly imploded under Travis Callin Ex leadership, and he was forced to step down a ceo, the companies
leader DORA cause we're shy, became known.
Dad in chief a sober executive,
who would uphold the rules? He immediately got to
rebranding uber. After a year of relentless bad brass, lived benefited from goobers public battering. Taking
a ton of new business and raising a new round of financing
ice war, is still simmering, but both companies are now competing on scooters, bikes and self driving cars, but they're about two
a common enemy of an epic magnitude covered nineteen.
This is episode. Six evolve were die. May twenty ninety phosphates,
Gareth Townsend is eagerly waiting for his left right. You can't wait to hit the slots when it
builds up. He opens the door he's
terribly confused. There are two
people sitting in the front seat, the team
They can click the Corfu like on. He gets in
car takes off, but before you
check is left out. He notices
the drivers. Hands aren't on the wheel,
well well. What are you doing that for the first time this is a cell,
Driving car lives big better in the future. The companies
up with self driving car manufacturer active.
I have already given more than fifty thousand rise in sin city with no one taking the wheel and just outside Phoenix their partnering with Weymouth
another driverless car start up counts in
here's. The dashboard right about there
conditioning vent a gps screen that shows the cars route as the car pulls up.
Like a left, turn it waits patiently for traffic to pass the car seats.
More cautious than a regular driver would be relieved
Townsend eases back. Instructs texting is France to brag
hello there, I'm in the future, and it's pretty cool
John Zimmer and Logan Green believe self. Driving cars are the key to lift becoming profitable if they don't have to pay
drivers will be able to keep a bigger portion of the rightful simple math prob.
Ms developing new technology is expensive, even though its revenue has been growing lit, is still losing money to the tune of more
a billion dollars in the last three months.
Uber is losing money too
it's also investing heavily in self driving cars. The
Ray sober. This cutting edge technology contained
the pace
self driving cars are the next major battleground and once again, drivers are the losers
of timber. Twenty nineteen goobers saddle
just go office, a young.
Manager puts her back down sinks into her chair and opens up her laptop just then. She
the message from her manager be me
office at ten thirty, a M
immediately. She feels butterflies and her stomach
Things have been bad and over the last few months in July,
the company fired four hundred people from its marketing team, including one of her close friends theirs,
F. O sent the whole staff and email with a subject line. Hashtag bind the money asking them to identify perks. They can part with. She takes a deep breath:
and walked to the conference room. Her manager gets right to it.
We have to make some cuts. I'm sorry!
but this will be your last day. The employee walks,
were desk. In a daze, though
a few years and a bird in a whirlwind of one terrible surprise. After another,
she's almost happy to be leaving this mess on another.
Laura cause Russia. He sits down at his desk to write a difficulty email to his employees since Superman
public in May. The company stock has been dropping it's now.
Eating below its IP o price hard.
The grand slam, they'd hope for
and while investors once gave Kaliko long leash happy to dump round after round of funding into the start up now they want returns. Profitability
in August cause Russia. He had to break it to investors that Goober lost more than five billion dollars in its last quarter and he's got more
news to deliver. He needs
as employees at the lavish Buber Bro days are over no more
Obscene Vegas trips with private beyond, say, concerts, no more
can carousing at Miami night Clubs
is tightening its belt beginning with its head count.
Cause Russia. He rolled up his sleeves and starts typing in the past,
who are teams rapidly and in a decentralized way. This
made sense as we work to scale the business globally and find product market fit
cause we shy takes a deep breath.
Certain point: vigour,
I do not mean better results. Its critical,
we get our edge back and continually push ourselves to do better. With that uber fires. Four hundred thirty five people, including two top office
is to Kallenbach, Aligned board members stepped out.
Cause Russia. He is quickly dismantling Callin ex domain
October. Twenty nineteen Sacramento California, in
the White State Senate House, council members are debating a bill that could change the entire business model for goober and lift if the eighty five bill passes
the ride, cheering giants we'll have to treat their drivers as employees, employees
with a slew of benefits, rather than as independent contractors,
the room, goes to a vote,
by one the
leaders vote in favour of a beehive. The assembly approves it fifty six to fifteen
back. It lives headquarters. Simmering green slump in their chairs,
refreshing their news, apps waiting anxiously for the results of the vote, sure
we painted themselves as the good guys the moral choice when it comes to ride sharing, but they ve never
sided with the drivers on this proposed legislation. There, too,
reed it'll heard their bottom line and potentially put them out of business. Green speaks first,
This is bad
they bad Zimmer nods, which
to cut costs, and this is going to ruin everything Zimmer, Stanza, we're gonna fight this. He cracks are smart
and so is over
we're on the same side for what
uber San Francisco office. Its chief technology officers springs into action here,
set email to employees calling for volunteers to help with the new project. I'm looking for folks to work on a career
a project around eighty five. This will be
One of the most critical impact full and urgent initiatives we have ever undertaken. He hit send and project Luigi
named after the famous Super Mario character is born. Its goobers
and to build a new app for California. Drivers in this version,
drivers will be able to see trip, fares up front and other features that give them more control. In other words,
goober would be able to argue that its drivers are independent and therefore not employees company
not stopping their either. Its legal team is looking hard for a precious loophole, one that will get Goober
to the costly new ruling Tony West
members chief legal counsel, jumps on a phone call with reporters. Contrary to some of the rhetoric we heard. Eighty five does not offer
radically reclassify any right, sheer drivers from independent contractors to employees, in other words,
I share. Drivers are not essential to goobers business. Several previous rulings have found that drivers work is outside the usual course of goobers business, which is serving as a technology platform for several different types of did.
No market places that raised his eyebrows, most of all among drivers,
How are they not essential workers to a ride? Cheering business but the phrase
central worker is about to take
got a whole new, meaning tyres, equity investors good for this march twentieth. Twenty twenty four is New York City,
a we driver is sitting on a couch at home, watching the news it's Friday, one hundred normal
He would be in his car, ferrying people home from work and off to bars and restaurants yielding, but his ass.
Gone quiet. The city is begin
to experience the impact of covert nineteen yield of New York
date already has seven thousand cases, one for the law,
sweet or so residents have been socially distancing and staying inside. As a result, his rights have dropped way off with it. Just then
Governor Andrew Cuomo comes on the screen, so we're going to put out
negative order. Today, New York state on pause,
The drivers ears pricked up his ears applicant. What does this mean for him? One hundred percent of the workforce must stay home and now
under lockdown its crystal clear, no one should be driving around potentially spreading the disease or in a car and close proxy
but he a stranger Ober
also about to be hit hard by covered. Nineteen
but it'll be even worse for lift the smallest,
up, doesn't have any alternative revenue models. Besides ride cheering Goober
On the other hand,
has one last trick up its sleeve April, twenty twenty LOS Angeles,
It's a brisk sunny day on Fairfax Avenue and Charlie Richmond is driving to pick up a sandwich. He pulls
to the familiar red building. White cursive
spell out the restaurant name up top counters, a more
He advertises its where's restaurant bakery delicatessen,
lunch time in the line would usually stretched the door, but things are different. These days,
Los Angeles is under quarantine orders. The restaurant is empty
set for one woman behind the counter who was
in plastic, gloves a giant pumped up
or of hand. Sanitizing sits on the counter in front of her rich
walks right up to the pick up counter amass covering a space,
I have enumerated order. First, Sarah, the
when's voices muffled behind her mask as she speaks crawling around with her.
Had she places a brown paper bag on the counter with a receipt staple to the outside Rich one gets back in his car
sap navigates him to drop the sandwich, Sarah, he follows:
directions down: Beverly Boulevard towards one of the beautiful houses on the palm line streets in Beverly Hills.
Rich when used to dry passengers for Ober, but businesses dried up completely, so he swore
to driving for goober eats as you
which is the Gruber each app alert. Sarah Richmond,
out of the car and walks up to her front door. He bent over and places
round back on our front step. This is contactless delivery.
Regiments happy to have work
but he's having to log substantial miles in order to make any real money who Bereaves is taking a twin
Five percent cod.
With a country on Lockdown Newberry,
Caesar thirty percent boost in people signing up to browse boo through the app
orders are also way up
and cause we're sure he is what
closely, rumors
circulating that goober will lean end to this revenue stream even more by
acquiring delivery, competitor grub hub left. Meanwhile,
left out in the cold. It doesn't
an existing food delivery service. It can lean on it.
Nice to reassure writers that lives cars, Romania a safe option, because their regularly cleaned and drivers wear masks
It knows. Ride sharing is decimated for the foreseeable future, so lift launch
is a central deliveries, a programme to transport
heels groceries and medical supplies
government agencies, local nonprofits businesses and healthcare organizations. They team up with partners like Dole packaged foods.
And local food banks in restaurants to get meals out sharing the cost.
Of the goods and deliveries with other companies.
Helps drivers earn money, but it doesn't do anything for shareholders and that's a problem. Both goober and lived
or giant companies by now
if they're going to whether covered nineteen there,
have to make sense,
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April
twenty twenty are on his own call from their respective homes joining them
executives from the rest of the company. They are getting
ready to submit lifts quarterly report to the Essie, see the bloodiest
The company went public Brian Run,
Hertz Lyft CEO pushes back his dark hair and clears his throat. Well, it's not pretty a revenue is fallen off a cliff. No one is taking right.
And we have a duty to shareholders to do something about it. Others
secular, sick quietly green looks
but his screen afraid
increasing his forehead. We,
We wanted to restructure anyway, but what sort of numbers are you suggesting Roberts pauses? We need
At least nine hundred eighty employees there's a collector,
sharp inhale of breath, green
his head in his hands. Zimmer jumps in Brian. That's like seventeen percent of our workforce, can't we just Burma them look, there's no point
This way to do this, we have to cut nine hundred eighty people and furlough two hundred eighty Zimmer
Epps his desk the line,
quiet as everyone processes, the news devastated. Finally, Roberts breaks the silence
I wish there was another way, but we have a budget
sherry duty to our shareholders.
It is up to take a twenty to thirty percent pay cuts themselves and the board for goes a chump
their compensation for the coming quarter. They aren't alone ubers, also hurting
and because it so much bigger than lift its cuts are bigger too
cause Russia, he slashes thirty, seven hundred jobs to save one billion dollars,
stay at home. Orders across the country had completely demolished goobers business rides
April were down. Eighty percent from a year earlier, it's only bright spot, liberates, reburied stood close
four point: seven billion dollars in sales in the first quarter of twenty twenty thanks to the uptake and take out, but there's more bad news in May
California, sues uber and lived for alleged
we miss classifying their drivers as independent contractors. If found guilty, they would
to reclassify contractors as employees, a move that could decimate their business as
effective measure goober and lived or trying to rewrite the rules themselves, their joining with
companies who are spending millions to lobby for a ballot initiative that would exist.
From the law June. Twenty two
green and Zimmer back on Zoom, its
the pair review: maize numbers the last.
Months have been brutal across both goober. An lived ride. Share trips dropped. Eighty percent. Now
They want to see what the latest is. Green goes first. Well, it's nowhere near as bad as April or may rise were up twenty six percent per annum
small Zimmer looks. It is co founder on screen yeah from what I can see that mostly in states like taxes were
quarantine. Orders were eating green
in clicks around us and historical numbers. Unfortunately, it's not good when compared to last year, what are we talking green pauses as he squint at the figure right
down seventy percent compared to May of last year simmer let out a whistle ass.
Green, can't help but loud awry smile.
That we'd have a nasty your enemy than over this pandemic is ruthless,
the two let out a dry chuckle
been through so much with Ober. Now there
businesses been all but decimated by covid. Nineteen
but things are beginning to pick back up like the rest of us there
praying vaccine comes quickly, so they can get back to work.
Gilbert left not only appended transportation. In America they created a gig economy.
First, it seemed like Silicon Valley was delivering on its promise of engineering. The future thanks. Just
perhaps like goober and lived people have the freedom to work when they wanted how they wanted the lack of Britain
genes for drivers soon showed that this future
just as hard on workers, as in the past,
American Valley has had its share of see your rock stars and start up culture gone wildly astray. Chow
ex meteoric rise and catastrophic flame out became a cautionary tale
is no longer enough just to grow venture capital
sir, less willing to flood companies with capital for years without seeing returns, both lived and goober problem,
Their companies will be in the black by twenty twenty one. Who is not
clear, exactly how covered nineteen will affect our bodies
Nineteen stretches on its ball impacts. Heavier.
To be revealed the few
of the ride sharing wars as yet
be written.
From wondering this is episode. Six of goober versus lived for business word. If you like,
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recreations you ve been hearing. In most cases we can't know exactly what was said. Those scenes are dramatization, but they are based on historical research
like to learn more about goober. Unless we recommend super puffed by MIKE Isaac and be upstarts by
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Sadly, rubber mad wrote this story. Karen low is our senior producer and editor edited empty,
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Transcript generated on 2020-06-17.