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Interviews: Ask Travis Kalanick About Startups and Uber
samzenpus (5) writes "Travis Kalanick founded Scour, where he had the distinction of being sued for $250 billion by more than 30 media companies, and peer-to-peer file-sharing company Red Swoosh, but he is probably best known for co-founding transportation network company Uber. Seeking to be 'Everyone's Private Driver', Uber operates in a number of cities world-wide but has met with some regulation issues, and controversy. Travis has agreed to take a break from arranging rides and answer your questions. Normal Slashdot interview rules apply."
hows the lawsuits going?
have you seen my sig? there are many others like it but none that are the same
I can only assume delivering packages is the next step. Where do you go from there? Will Uber one day have an 'API for motion' where users can move anything, from anywhere to anywhere, specifying priority in exchange for cost? What about an API for quantum teleportation?
Do you intent to ever actually obey the local laws with your taxi services or just keep trying to find loopholes to hide in?
Wow, Uber really transformed my life. 6 mo ago I got in a bad car accident and now I rely on ride services to get around (I use UberX in the Los Angeles area). Without Uber and others I would be calling cab companies.
However, I've noticed that Uber used to be much more fun, but has been backsliding a bit. It used to be that half the fun of Uber was meeting the drivers, who were driving Uber but also were actors or grad students or other interesting people with flex time. But in the past couple months it's become more and more dominated by gruff foreigners (Armenians primarily in the LA area) who say two words for you and listen to their music. The cars are still clean, and they arrive on time and get you there efficiently. But it's no longer fun and feels more like a cab, albeit it doesn't smell like smoke.
Somehow, Lyft has resisted this trend, and rides on Lyft are still really cool. On my last Lyft the driver and I were talking about articles in the recent issue of Fast Company. When was the last time you did that in a cab?
So the question: how can Uber continue to grow while maintaining the quality of their driver pool, specifically drivers that are fun and engaging?
I've got a question regarding where it is you're getting the money for these startups, especially considering how controversial Uber is. You've had regulators throw the company out of New York and plenty of other major metropolitan areas are fighting to stop Uber, either through regulatory enforcement or through new regulations. I do not invest, largely because I don't make that kind of money, but who is it that's willing to put up the kind of money it takes to start a company founded on a premise that I'd like to believe people could see as controversial before it was rolled out?
Every day I read articles about climate change and that it's important to do what we can to minimize emissions. Then local governments get pissed when someone figures out a way to increase the number of passengers in cars, which should be a win, also it should lessen the numbers of cars on the road at the time easing congestion. All this proves to me is that governments are still more concerned about putting money in their pockets and that their ramblings about the environment is just an act.
As far as I can tell, "disruption" means "ignore laws and regulations". So, how do you know which laws and regulations are ok to ignore?
Do you even lift?
These aren't the 'roids you're looking for.
As I understand it, during surge pricing, Uber sets the price multipliers, which incentivizes additional drivers while simultaneously reducing demand, ensuring a consistently good experience for those customers who choose to go ahead with their trip.
How do consumers trust that Uber is acting responsibly with this ability to set prices?
Do you suck dick for coke?
It seems like most of the new and interesting things being attempted on the net these days are stopped by legislation or lawsuits from vested interests, not by any technical problem. This has bit you twice in two VASTLY different businesses. What is you opinion on this, and what can we do about it?
I talk with almost every driver I ride with and ask them how Uber works for them. Some are clearly filtering, others quite honest and forthright. In general a lot of them seem to be reasonably pleased.
The near-universal complaint is the star rating system. For those who don't know: Uber requires drivers maintain a FOUR AND A HALF STAR RATING or they're "fired."
One driver described a guy who he picked up, he was cheerful and polite, the guy barked out the address, glowered in the back seat with his hoodie up, didn't say a word, got out, and gave the driver a 1 star rating.
Other drivers complained that many of their fares are drunk out of their minds and give them ratings that are, at best, a mistake. People can't dial a telephone when they're drunk, but uber wants them to give a subjective rating? Can't you imagine the drunk chick who's all "WEEEEELELLLLL I THOUGHT HE HAAAAAAD A FUNNNNNNAAAY NOSE. TWO STARS FOR YOU!"
Most of the drivers said that the star system just simply wasn't understood by passengers - or that passengers had a star-to-happiness scale the drivers thought was reasonable, but Uber's scaling was absurd; they don't fault the passengers at all. I've said to each driver that "One star means you did something horrible, or I felt unsafe, or the car was filthy, etc. Two stars means something was off. Three stars to me meant a fine ride, no complaints. Four stars meant something was above the norm/my expectations. Five stars meant singing angels descended."
Each nodded and said, basically: exactly, totally reasonable...but Uber expects that even if the ride was nothing special, you're giving drivers 4-5 stars.
I'm sure you've got some beautiful excuse for how this is just the way you're dealing with having so many people who want to drive for Uber. But really, with a ranking system none of the customers understand how you use, you might as well just be employing Russian Roulette.
Oh, and by the way: I'm fed up with the fact that I can't leave feedback/a complaint for drivers I have to cancel a ride with because a driver was dicking around for 10 minutes (I call these guys the Uber Couch Drivers - they're sitting on the couch withthe app open...get up, brush their teeth, make a sandwich, kiss the wife goodbye, take the dog for a walk, then get in the car, adjust their hair, punch in my address into the GPS, then make their way over). Fed up with the fact that there's no way to reach a person at Uber if there's a problem, like accidentally leaving something in the car, or having an immediate safety concern about a vehicle or driver. I'm fed up with the form replies to complaints via the app (I don't want $5, or even $10 off my next ride. I want to you to fix the problem I complained about), and I'm fed up with your marketing staff thinking they're just the Bee's Knees. Three times I've tried to get Uber to do a promo for an event that totally fits Uber's potential customer base, and each time, the best that you could offer was your standard $10 off a ride, only for new signups. Which as an event organizer, made me take a big, epic Polite Chuckle and delete the email. You might as well employ robots as your marketing staff, because they've got about as much freedom or creativity as one.
Please help metamoderate.
The multipliers are a complete load of crap. They're supposedly based on demand, yet...I've noticed I can open the app, see a sea of available uber cars, and yet there will be a 2.5x multiplier in effect.
Please help metamoderate.
How do you respond to allegations that Uber has engaged in price-fixing for profit and anti-competitive tactics for market share? Examples: Uber forced driver shortage to boost surge pricing, Uber staff making bogus reservations at competitor's service. Is Uber just a big bully? Are you?
> The near-universal complaint is the star rating system. For those who don't know: Uber requires drivers maintain a FOUR AND A HALF STAR RATING or they're "fired."
That's not unique to Uber, that's pretty much for any service industry based job.
Your hair look like poop, Bob! - Wanker.
Mr. Kalanick, thanks for taking the time!
My question: Given that the concept of "disrupting" a current revenue stream is currently an influential contextualization for startup companies today, including Uber, what industries/companies are *out of bounds* for disruption?
Is any human enterprise fair game for Uber's concept of "disruption"?
For example, would Uber consider a tech solution that allowed a construction company to save million$ by staffing their entire workforce with legal part-time migrant workers, effectively ending the job for all labor employees except migrant workers...is that disruptive?
Is anything out of bounds when "disrupting" an economic system?
Thank you Dave Raggett
So what factors were and weren't considered in your decision to ignore existing regulations in many of the cities you operated in? Did you assume local governments would change laws retroactively, or would not attempt to enforce? Or did you have legal counsel advise you that your operations did not fall into the regulated category (which Uber now seems to admit it does)?
Basically, what was the process?
I stress over my mortgage and car loan, though they are manageable because I can manage the payments. If someone had a potential liability of even just 0.1% of $250 billion, I could work the rest of my life and never make up 1/100th that kind of liability. How does it not affect your heath?
Slashdot's rate-of-post filter: Preventing you from posting too many great ideas at once.
Maybe they should consider meta moderating ?
The rating itself isn't a problem.
The problem is that the riders have no idea what an "expected" rating is, and leave 3-4 stars for drivers that need 4-5 stars to not fail the system.
Uber seems to hit a lot of legal challenges. It seems like, in every city, the incumbent taxi market has a different set of legal hurdles for you to pass through. It's kind of a shame, too, because everyone involved with Uber is making an honest living providing a needed service.
What's tends to be your day-to-day balance of being lawyer versus entrepreneur? Would you say that you have more legal woes than a normal startup? Do you think this is "par for the course" any time someone's starting an interesting company?
No, I will not work for your startup
I am an uberX driver and I enjoy the work and I make good money. I was able to get a new car and I have put into service. I like most of the customers and I love my new car.
But I worry that if i get into an accident, which has already happened to me, I will be stuck without coverage for body damage because all personal insurance policies exclude coverage for commercial usage. Uber provides liability coverage, but I could be out of luck with comprehensive collision coverage and be stuck with the total loss of my vehicle with no recourse.
You expect us to use good looking, newish cars. When will you provide us with an insurance alternative to properly protect our investment? I would opt into reasonably priced coverage, but presently I can't get it at any price. When will you solve this?
This is a problem with using a 5-star review scale. That's something that's easily understandable by consumers, but worthless for gaining actionable data. There's too much variation in each person's subjective rating. For instance, some people simply won't ever give 1 or 5 star review unless something unreasonable happened. For others, like you, they see the 5-star system like the grading system in school...3 means an average "I was happy, but not overly" experience. The 5-star scale has its place, but it should be solely limited to communicating review scores to other customers.
If you're looking for actionable data, NPS is what you're looking for. It's more reasonable to expect drivers to maintain a positive NPS score rather than 4.5 stars.
FWIW...my company collected over 100M reviews last year on behalf of the businesses we represent, so doing reviews right is a big part of my job.
*golf clap*
Please help metamoderate.
If the drivers get money from Uber as independent contractors, then Uber's workers' compenation and liability insurance policies cover the independent contractor unless the contractor provides proof of their own coverage. Without proof in Uber's hands, the liability falls on the general contractor, not the subcontractor.
Any city that wants to expel Uber should simply have the state insurance board examine Uber's insurance coverage. Once their insurer has been identified, a quick call to that company is all it would take to convey the real shenanigans being played by the policy holder.
$5 / month hosted VPS on linux = awesome!
There seem to be a lot of people that are questioning the legality of Uber which I understand but I have a question for Travis and also the people on this board.
What prompted you to conceive this service? Was it lack of offerings available, difficulty finding a reliable ride or something else?
For those of you questioning this service, what alternative do you suggest that offers the same ease of access to transportation? I am someone who uses Uber 2-10 times a week and I do not have anything as convenient as Uber. In my area, I can get Uberx(personally owned cars), taxi(big name guys) and black cars. Are the objections to this service valid in my area since all the regular players are involved or is this directed to just UberX?
Required Facebook membership? No thanks.
These people need to get out of their comfort zone. Expose them to different cultures and ideas. Using FacEbook to ghetto-ize drivers is xenophobic. No sympathy for the OP complaining about immigrant drivers, either.
$5 / month hosted VPS on linux = awesome!
You pussy. Can't answer these questions?
here's how I do it:
five star is because something was awesome: the driver is really nice, or helps me out in some way, or something really sticks out. This is 15% of rides for me.
baseline is four stars. on time, clean nice car, pleasant driver. This is 80% of rides for me.
three stars is because something wasn't good. everything was still servicable, I was picked up on time and got to my destination. But maybe the car wasn't the best, or the driver was gruff, or he chose a suboptimal route. Basically at this point I might as well take a cab for this level of service.
two stars or one star: something sucked or went wrong. I never want to see that person again.
you're right, everybody's scale is going to be different. This works for me because it lets me call out outstanding peformance and problems.
Does Uber verify that drivers actually know the area in which they service? For example in New Zealand (where Uber does operate!) drivers would be legally required to hold a P (passenger) endorsement on their license, and the transport agency requires that drivers demonstrate area knowledge to get a P endorsement (so that they can prove that they aren't going to rip passengers off by going the wrong route).
For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
Interestingly, I've always given my Uber drivers 5 stars, as each of them has been excellent —we basically hang out talking about a range of topics while he drives me in a very clean car as good or better than I could drive myself. One time I was with friends and he was downright entertaining.
In spite of Uber not having a destination point, drivers have refused me rides. I totally want to blacklist them from Uber, how can I?
There has been speculation that Uber may move into the delivery/currier business. Is it something that you've talked about and what other areas are you exploring if any?