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[Lagspike_exe]

Zero Hedge via WSJ (I have left the pretentious title out, although it probably isn't far from truth):

The uber implosion at Uber continues.

Two days after it emerged that Uber CEO Travis Kalanick had fired off a bizarre email in 2013 to hundreds of employees where he listed the conditions under which they could have sex with each other at a company outing in Miami, the WSJ reports that not only is Uber Chief Business Officer Emil Michael said to resign on Monday, just two days after it was reported that Uber's head of finance Gautam Gupta was departing to take a position at OpenDoor, but that embattled Chief Executive Travis Kalanick "will discuss taking a possible leave of absence when the board of directors of the embattled ride-hailing company meets Sunday morning."

From the WSJ:

Uber Technologies Inc. executive Emil Michael, one of Chief Executive Travis Kalanick’s closest confidants, is planning to resign as soon as Monday amid an ongoing investigation into the company’s workplace culture, according to people familiar with matter.

Mr. Michael, as chief business officer, helped oversee broad strategy initiatives including mergers and acquisitions and fundraising. He joined Uber in 2013 from Klout Inc., which rates users’ online reputation, and had worked as an adviser to technology companies.
Also on the agenda of today's meeting of the seven-person board is a vote on a series of recommendations from a report prepared by former U.S. Attorney General Eric Holder regarding its workplace.

It was uncertain whether Mr. Kalanick would ultimately take the leave or whether the board would approve of such a measure, which would require finding a temporary replacement in short order.?

Some stuff about cash flow:

And then there is the biggest problem of all: Uber's chronic cash burn.

Uber lost $708 million in the first quarter, despite another rise in revenues. Last year, Uber managed to burn through almost as much cash as NASA’s $4.8 billion budget last quarter. Previously, Bloomberg reported that Uber has burned through at least $8 billion in its lifetime through the end of 2016. While the company had $7 billion of cash on hand as of March 31, along with an untapped $2.3 billion credit facility, inevitably questions will emerge if and when the world's most previous "unicorn" will ever turn a profit. The company was most recently valued at $68 billion, although in light of the recent turmoil in the C-suite that number will likely be revised significantlly lower.

http://www.zerohedge.com/news/2017-...-officer-resigns-kalanick-plans-leave-absence

I think this is worth the read and they even compiled a list of 17 events that are either bizarre or tend to be a very bad omen.

 

[NotTheGuyYouKill]

Uber is amazing at just how poorly they're run

 

[Lagspike_exe]

Uber is amazing at just how poorly they're run

I know of companies that are run aggressively, but this type of corporate culture is crazy. Especially for Silicon Valley.

Although I would guess that if the company prospects were looking better, people would be less inclined to jump ship and lose their company equity. Next round or two of funding could prove detrimental to company. It's sayonara if it gets a down round.

 

[Flying Toaster]

Uber is amazing at just how poorly they're run

There are some companies that are run crazy like this. The difference between said companies and Uber is that the former actually have results and not bump after bump after bump.

2017 is turning out to be the year Uber was put under a microscope and no one liked what they saw.

 

[Linkura]

 

[shira]

this is 4 years ago, can't even imagine what's going on in the present left unchecked

 

[Lagspike_exe]

There are some companies that are run crazy like this. The difference between said companies and Uber is that the former actually have results and not bump after bump after bump.

2017 is turning out to be the year Uber was put under a microscope and no one liked what they saw.

Pretty much. While valuations kept climbing, it was easier to control damage because people did not want to lose their equity by leaving.

When CFO and key business people start jumping ship, it's a sign that company may be reaching event horizon. When CEO takes "a leave of absence", company is most likely near the black hole.

 

[excelsiorlef]

Couldn't happen to a nicer company

 

[kess]

Three days ago:

Uber executive fired amid reports he obtained rape victim's medical records

A top Uber executive who reportedly obtained the medical records of a woman who was raped by her Uber driver was only fired after journalists learned of the incident, it emerged on Wednesday.

According to reports on the tech website Recode and in the New York Times, Eric Alexander, the president of business for Uber Asia Pacific, obtained the medical records of the victim in a 2014 rape case that caused widespread outrage in India.


An Uber spokesperson confirmed that Alexander was no longer with the company, but declined to comment further on the allegations. Alexander did not immediately respond to a request for comment.

The rape case prompted Indian authorities to temporarily ban Uber in the capital city.

Alexander reportedly traveled to India to investigate the matter and later shared the records with CEO Travis Kalanick and senior vice-president Emil Michael.

The trio of executives reportedly cast doubt upon the victim's account and suggested it could be part of a conspiracy by rival firm Ola to damage Uber.

 

[Pharaun]

I'm wondering if/when the Ubers Board will try to force Kalanick out completely in a last ditch​ effort to save the company. He's such a PR liability right now.

 

[sant]

What a disaster

 

[ClosingADoor]

Turns out, offering rides below costs is not a good business model. Also: WTF at this

“Do not have sex with another employee UNLESS a) you have asked that person for that privilege and they have responded with an emphatic ‘YES! I will have sex with you’ AND b) the two (or more) of you do not work in the same chain of command. Yes, that means that Travis will be celibate on this trip. #CEOLife #FML.”

If your company is that screwed up you have to warn your employees not to rape each other, what the hell is going on there.

 

[elostyle]

It seems silly that Uber is valued at 10x of Lyft which works just as well.

 

[MrMephistoX]

I hope Lyft continues to thrive if Uber implodes...I don't want to go back to a world before ride sharing! I go out of my way to use Lyft now because I don't want to support monstrous behavior like this.

 

[Y2Kev]

I know Uber isn't going anywhere (though prices are probably going to go up), but I can't even imagine the city without them these days. They really provide a superior experience to a cab at a significant discount.

 

[The Technomancer]

Uber lost $708 million in the first quarter, despite another rise in revenues. Last year, Uber managed to burn through almost as much cash as NASA’s $4.8 billion budget last quarter. Previously, Bloomberg reported that Uber has burned through at least $8 billion in its lifetime through the end of 2016. While the company had $7 billion of cash on hand as of March 31, along with an untapped $2.3 billion credit facility, inevitably questions will emerge if and when the world's most

Maybe there was a reason cabs are more expensive than Uber

 

[DOWN]

CEO is officially on leave:

Uber CEO takes leave of absence amid crises - CNN Money
https://apple.news/Au3wLorw0R0OeYbGIi-JnYA

 

[Stinkles]

I switched to Lyft. So did most of our friends.

And Uber seems to be hurting a little because they started sending special offers which I didn't use to see very often.

All they had to do was be less evil than cab companies.

 

[sfedai0]

c r u m b l i n g

 

[aeolist]

Maybe there was a reason cabs are more expensive than Uber

they've been dumping for as long as they've existed. the company is just a VC ponzi scheme that will destroy lives when it goes belly up.

 

[Zenner]

Kalanick said Tuesday that his leadership team would be running the company in his absence. But much of that leadership team has left or been pushed out.

Uber currently has no COO, CMO, CFO or president.

That's a rudderless boat, pretty much.

 

[Lagspike_exe]

That's a rudderless boat, pretty much.

Basically. Dead in the water burning cash.

 

[Oppo]

As a nice roundup on Kalanick and Uber, I do encourage you to listen to the Dollop podcast on this topic.

That company is fucking amazing. In a bad way. Maybe the worst way. Ever.

#jampad

Maybe there was a reason cabs are more expensive than Uber

Indeed, addressed in that same podcast, is the fact that car service inherently has a high overhead, and any inefficiencies to be found are scant overall. an Uber that costs less than half of a cab ride - someone is getting screwed, usually the driver.

 

[hodayathink]

they've been dumping for as long as they've existed. the company is just a VC ponzi scheme that will destroy lives when it goes belly up.

The idea was to survive long enough for driverless cars, but their management has gone ahead and screwed that right up.

 

[ShyMel]

Three days ago:

Uber executive fired amid reports he obtained rape victim's medical records

How gross. To think a woman is lying about being raped in order to make your competition look good.

 

[hawkshockey11]

Maybe there was a reason cabs are more expensive than Uber

I just want to be able to use my phone to pay and not be told "credit card machine is broken. " This is apparently too much to ask for cab companies.

 

[Jag]

#jampad

Fuck Kalanick. Guy sounded like a scumbag.

 

[derder]

At this point, I can't imagine why you would put money into Uber over Lyft from a VC standpoint. Uber is going to implode and they've paid the way for everyone else

 

[geestack]

wow

it isn't just kalanick who is a d-bag, the entirety of uber's board is a bunch of assholes

 

[ghostmind]

Never used Uber, and after listening to the Dollop, I never will.

Scumbag douches of the highest level.

 

[Blader]

wow

it isn't just kalanick who is a d-bag, the entirety of uber's board is a bunch of assholes

Jesus.

 

[Chmpocalypse]

lolololol

Get fucked, Uber. Garbage company run with all the ethics of a crack house and supported by people happy to look the other way as drivers get exploited right before their very eyes.

Couldn't happen to a more deserving 'business'.

 

[Linkura]

wow

Fuck this company. No one should be doing business with them, period.

 

[gcubed]

I know a lot of my friends who have switched to Lyft as well. Not sure if there are any numbers on it or impact but people I wouldn't expect to pay attention to stuff like this are only using Lyft.

Will be interesting to see

 

[Lagspike_exe]

The idea was to survive long enough for driverless cars, but their management has gone ahead and screwed that right up.

That idea was very far reaching. Other companies pursuing it have solid core business that are cash positive, except Tesla, but that is their core business.

Uber is an easily copied app that rammed through variously legal roadblocks with VC cash pursuing an overly ambitious goal. But VCs have only a certain amount of patience and with this burn rate, it clearly got out of hand.

 

[Enzom21]

 

[elrechazado]

Remember this story when you're questioning whether just anyone could be a CEO. Professionalism isn't universal unfortunately

 

[Lunar15]

Toxic as fuck.

 

[Jag]

Uber has too much traction to lose market share barring some serious regulatory issues. They will clean up the bro-atmosphere and pretend it never happened while their $68B valuation continues to climb.

This is the real life Silicon Valley.

Edit: For fun, here is the "Miami Letter" that Travis was so proud of.

I have gotten a list of concerns from the legal department. I have translated these concerns into a clear set of common sense guidelines. I've also added a few items of my own.

As a lawyer that advises my CEO, this is my worst fucking nightmare. We were actually talking about this today.

Wrote Kalanick: ”Do not have sex with another employee UNLESS a) you have asked that person for that privilege and they have responded with an emphatic ‘YES! I will have sex with you' AND b) the two (or more) of you do not work in the same chain of command. Yes, that means that Travis will be celibate on this trip. #CEOLife #FML."

Edit edit: #jampad

 

[PetriP-TNT]

 

[LumpOfCole]

Uber is going to have its own chapter in business textbooks in a few years.

 

[BlueTsunami]

Next year the Uber balloon on Silicon Valley should be on fire

 

[Gattsu25]

*smallest_violin.jpeg*

That recent Dollop episode was an eye opener for me.

I've been following Uber news, which is nearly universal in painting the company as horrible, since 2016 but that episode opened my eyes to how they've been rotten since before their inception. Before.

 

[dave is ok]

That's a rudderless boat, pretty much.

Basically. Dead in the water burning cash.

Jesus christ guys

 

[Yoda]

I know Uber isn't going anywhere (though prices are probably going to go up), but I can't even imagine the city without them these days. They really provide a superior experience to a cab at a significant discount.

Their problem is the monopolistic pricing is supposed to be phased out by the savings from autonomous cars... Which aren't close to prime-time, especially with the recent lawsuit Waymo (Google) hit them with. If Uber'sber prices reflected the actual cost right now, they'd run out of money.

 

[Skellig Gra]

Oof, what the fuck man

 

[Lagspike_exe]

Jesus christ guys

Company without leadership is a dead company.

 

[Jag]

He's resigned from the BoD because this. They are going to clean house, go public and make the billionaires even more billions.

 

[The Jackdog]

something i found interesting.

uber is losing money at historically fast speeds. like obnoxiously fast. they survive on tons of money from VCs.

i used to think their endgame was self driving cars, but its really not.

its to, and this is amazing, put every other service out of business.

not just lyft, not taxis, but cars. they want to make it so the only way people are getting around is through uber.

how insane is that?

 

[DJKhaled]

It seems silly that Uber is valued at 10x of Lyft which works just as well.

Lyft is barely in any locations compared to Uber which is everywhere. If Lyft expands to way more countries then maybe.