Since it first emerged, Uber has been dealing with competitors that use the same model. However, the company still controls more than 80 percent of the domestic ride-sharing market. As the first and biggest, Uber has got the brand recognition for sure, but that brand is starting to hurt in the aftermath of harassment scandals and the ousting of CEO Travis Kalanick. While Uber scrambles for a new executive team, the company needs to continue to attract and retain both drivers and customers while developing a positive relationship with local regulators. Exacerbating the matter, rivals such as Lyft and Juno have been taking advantage of that turmoil with the goal of taking its drivers and courting its customers.
Rivals, Lyft in particular, have so far been winning the battle to attract talent. Just last month, Lyft unveiled new incentives such as scheduled pickups, an app just for drivers, and “Power Zones” that allow drivers to get paid more for driving in particular cities during certain hours. They also recently entered a partnership with the autonomous vehicle firm nuTonomy, which plans on piloting its technology in Boston.
While Uber’s harassment scandal hasn’t impacted the company’s core product, it has seriously damaged their brand, as well as their attractiveness to both investors and employees. The company has earned a reputation among both drivers as well as the tech world for fostering a hypercompetitive culture that offers employees little in support from above. Turnover at the company, particularly among women, is notoriously high. This damaged reputation could also mean that Uber will have a tougher time with government regulators.
As Uber has grown to dominate the ride-sharing industry, they’ve also faced numerous issues with drivers, who have complained about workplace rules and compensation issues. While Uber has recently announced a series of compensation and work rule changes meant to improve their relationship with their core group of drivers, this might be too little too late. And as Kalanick has stepped down, Uber is hardly in a good place to be right now. The damage to executive recruiting and corporate branding will most likely require Uber to look for outside talent offering a fresh, improved brand, otherwise the company could end up eating Lyft’s dust.