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“GROWING PAINS” AT UBER

There are a number of warning signals that Uber is headed for a classic
entrepreneurial fall. As discussed recently in the press, Uber suffers from several
severe problems that are really symptoms of a deeper problem. Among Uber’s
current problems are: 1) accusations of sexual harassment at corporate, 2) a claim
of intellectual property theft, and 3) a culture of treating ill-treatment of Uber
drivers.25 There has also been a video documented incident where the CEO of
Uber, Travis Kalanick berated an Uber driver who had the temerity to complain
about Uber’s fare policies26. Subsequently, Kalanick admitted that he handled the
incident poorly, and stated that: “It is clear that this video is a reflection of me and
the criticism we’ve received is a stark reminder that I must fundamentally changes
as a leader and grow up.27”

Although Kalanick ought to be praised for his admission and self-criticism, his
behavior is a warning that he does not yet have the skills and psychological
attributes necessary for leadership of such a large complex organization as Uber28.

These kinds of issues are symptoms of “growing pains” both of the company’s
leadership and the company per se.29 Clearly the company has not developed either
the leadership capabilities or the management system required to run a rapidly
growing enterprise such as Uber, and convert it into a Sustainably Successful
Organization!

These types of are problems as well as a classic set of other growing pains are not
unique to Uber. We have identified a classic set of growing pains experienced by
companies growing as rapidly as Uber.30 In fact many companies are victims of
what we can term “The Uber Syndrome.”

25 Michael Hiltzik, Los Angeles Times, Business, Thursday March 2, 2017, p. 1, 4.
26 Ibid.
27 Ibid.
28 See Eric Flamholtz and Yvonne Randle, Growing Pains: Building Sustainably Successful
Organizations, Wiley, 2016, especially chapter 1 and 9.
29 Ibid., Chapter 5.
30 Ibid., Chapter 5.

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