I knew that it would be a matter of time before some company would come along to go after the ride sharing giant. According to a recent article in Forbes, a new ridesharing company called Juno appears to be just that company to slay the ridesharing dragon.
Five Reasons Uber Will Eventually Fail
Let’s face it. Uber is no more than a technology application. And it’s that technology innovation that filled a much needed gap with the taxi industry’s dispatching problem. Passengers needing to go somewhere no longer have to wait up to an hour for an available taxi to pick them up from home. Lyft’s C.E.O., John Zimmer claims to be gaining a significant amount of the rideshare market. And now, comes Juno with plans to treat drivers better.
Uber has a number of lawsuits that have been filed against them. I have heard as many as 150 lawsuits but I can’t confirm that to be correct. In any case, the big one is the class-action lawsuit in California. It is this lawsuit that can hit Uber in the pocketbook for possibly billions.
I can’t remember ever witnessing a company operate with such arrogance as Uber. Since it inception, Uber has appeared to have ignored government regulations in cities across America and many countries that it operates in globally. It appears that Uber ignores media requests for a comment every time the company names comes when a driver or passenger brings attention to some problem that have had with the ridesharing service.
Recently in France, two Uber executives were charged with running an illegal taxi service. According to GeekWire, the two executive had several memory lapses in court.
4. The Flight of Drivers
Uber last month slashed their fare prices in over 100 cities. That business decision made somewhere in Uberland has caused a lot of pushback from drivers that have resulted in strikes in major cities like New York and San Francisco, a failed attempt to disrupt the Superbowl, and just a number of drivers leaving Uber for it’s competitors. I always thought that business schools taught that a good business relationship is to be a win/win for everyone involved. It’s possible that Travis Kalanick didn’t take that class.
5. Bleeding Red
Uber seems to be losing on the financial balance sheet too. Back in January, an unverified financial investment document was leaked that shows Uber was spending a lot more money to attract drivers and customers than revenue brought in. With all things considered, the trajectory of financial survival can only get worse.
DISCLOSURE: I am a Lyft driver and will earn compensation through Lyft’s referral program if you choose to sign up for Lyft rideshare services through my link.