Uber Crisis Management 

Uber is the world’s leading transport and mobility service provider American multinational company. The transportation company has experienced various crises over the years. The massive blow came when the company’s former employee accused the company of a toxic working environment and discrimination; it had negatively impacted the company. Today, we’ll discuss Uber crisis management; crisis events; the strategic approach of the company, and lessons learned from Uber crisis communication. 

Crisis Event to Uber

A former employee of Uber published an article in 2017 and accused the transportation brand of having a toxic working environment, sexual harassment, and discrimination. Many current and other former employees came forward and confirmed the deep-rooted problems within the company’s working culture. 

Along with an article, a video became viral on social media highlighting the berating attitude of Uber’s CEO while arguing with its drivers. There were many other additional controversies came to light, and they greatly tarnished and jeopardized the company’s reputation in the online ride-sharing market. 

Workplace Culture Controversy 

Many former employees accused the company of sexual harassment and discrimination without any accountability. The allegations highlighted the nonprofessional behavior and working environment of the company. However, it presented the company as unsafe for employees and undervalued the expertise of employees. 

Regulatory Issues 

Along with Uber’s internal environment allegations, the company was also facing legal and regulatory challenges and issues. Uber was lawsuits from the traditional taxi association companies, and they resulted in the form of temporary bans in some cities and heavy fines. It required the company to build a good relationship with the legal and regulatory departments. 

Impact of Controversies 

  • Greatly damaged the company’s reputation and jeopardized the company’s brand value 
  • Declining trust and confidence of ordinary customers in the company 
  • Regulatory challenges like lawsuits, fines, investigations, and bans in some cities 
  • Heavy fines and legal compliance fees were jeopardizing and hurting the company’s financial position 
  • Losing the competitive edge in the ride-sharing market 

Strategic Approach to Uber Crisis Management 

Some of the main strategic approaches of Uber crisis management and Uber crisis communication are as follows; 

Acknowledging Crises and Challenges 

Uber realized the gravity of the controversies and publically acknowledged the challenges and issues that the company was facing. The press release and official statement acknowledged the flawed management practices, negative working culture, and other challenges to the company. However, the admission of problems and issues showed that the company was taking responsibility for its mistakes; it was willing to resolve the problems and issues. 

Changing Leadership 

In response to the viral video and other allegations, the co-founder and former CEO Travis Kalanick resigned from its CEO position. The objective was to change the leadership style and behavior of the company and resolve the issue. However, the new CEO Dara Khosrowshahi showed his strong commitment to an ethical approach and transparent communication. 

The new leadership style would mean the foundation and development of new behavior and new culture within the company. The transportation brand launched various reforms to build a safe, diverse, and respectful workplace culture, where everyone is accountable for their actions. 

Transparent Communication 

Uber was aware of the fact that open and transparent communication was the key to bringing all the stakeholders, employees, and management on board about transformation. In order to deal with crises and controversies, the company conducted town hall meetings and employed multiple media channels to inform the public and media about the steps that the company has taken to deal with the situation. 

An open and transparent communication approach allowed the company to deal with the issues that had caused the problems in the first place. It comprised conducting an internal investigation, full disclosure of report findings, sharing progress reports, and implementing the changes. 

Taking Corrective Actions 

Uber has also taken safety and security steps to improve the overall experience of drivers and riders. It consisted of careful scrutiny and background checks with multiple sources including the criminal department. It showed the ride-sharing company’s strong interest and commitment to the safety and security of passengers and making the platform secure for everyone. 

  • Promoting a respectful culture and environment 
  • Developing anti-harassment policies 
  • Educating employees and workers to exhibit appropriate behaviors 

Collaboration with External Stakeholders 

Uber started collaborating with the legal and regulatory departments to comply with the legal requirements and protocols. It led the company to engage in the right practices, improve the driver screening process, and take better safety protocols. However, the brand also started paying heed to the views and perspectives of the general public, employees, and drivers. 

Lessons Learned from Uber Crisis Communication 

Some of the main lessons learned from the Uber crisis management and Uber crisis communication are as follows; 

  • Proactively responding to crises and controversies and acknowledging your mistakes and flaws 
  • Valuing employees and bringing reforms to improve the workplace culture 
  • Preferring and promoting open and transparent communication at all levels of the organization 
  • Don’t hesitate to make the right and difficult decisions 
  • A company’s reputation has a great impact on the trust and loyalty of customers 

Conclusion: Strategic Crisis Management of Uber | Uber Crisis Communication 

After an in-depth study of the Uber crisis management; we have realized that Uber is the world’s leading retail chain ridesharing and Transportation Company. If you are learning about the Uber crisis communication; then you should keep in mind the abovementioned Uber crises and controversies; strategic approaches of the company, and lessons learned from the company. 

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