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A New Video Shows Uber CEO Travis Kalanick Arguing With a Driver Over Fares (bloomberg.com)

A new video published by Bloomberg shows Uber CEO Travis Kalanick arguing with an Uber driver over fares. It all started when one of Kalanick's "companions" appears to say that she's heard that Uber is having a hard year. Bloomberg reports: That pleasant conversation between Kalanick and his friends in the back of an Uber Black? It devolved into a heated argument over Uber's fares between the CEO and his driver, Fawzi Kamel, who then turned over a dashboard recording of the conversation to Bloomberg. Kamel, 37, has been driving for Uber since 2011 and wants to draw attention to the plight of Uber drivers. The video shows off Kalanick's pugnacious personality and short temper, which may cause some investors to question whether he has the disposition to lead a $69 billion company with a footprint that spans the globe. Uber declined to comment on the video. Here's part of the conversation:
Travis Kalanick: "So we are reducing the number of black cars in the next few months."
Fawzi Kamel: "It's good."
Kalanick: "You probably saw some email."
Kamel: "I saw the email [says] it starts in May. But you're raising the standards and dropping the prices."
Kalanick: "We're not dropping the prices on black."
Kamel: "But in general."
Kalanick: "In general but we have competitors. Otherwise we'd be out of business."
Kamel: "Competitors? You had the business model in your hands you could have the prices you want but you choose to buy everybody a ride."

You can read the transcript of the conversation here via Recode.

UPDATE 2/28/17: Uber CEO Travis Kalanick has issued "a profound apology."

25 of 187 comments (clear)

  1. The long, slow downfall has begun by quonset · · Score: 3

    Wasn't there a recent story about how Uber is doomed?

    Oh right, here it is.

    1. Re:The long, slow downfall has begun by monkeyzoo · · Score: 5, Informative

      Hit job?! The media barely has time to cover all the crappy things Uber does because there are so damn many of them!

      What?! So this shows the CEO is an A-hole?! Never could have known that before!

      Uber’s 10 Worst Actions—Threats, Lies, Sexism & Shady Business Deals
      http://observer.com/2016/02/ub... [observer.com]

      Anticompetitive and dishonest business practices against rivals.

      Using their geolocation data to harassing and personally threaten journalists who didn't cover them favorably.

      Exploiting workers, not only as contractors but by enticing them to enter into exploitative financial agreements.

      Rampant corporate sexism and misogyn from the CEO on down.

    2. Re:The long, slow downfall has begun by PolygamousRanchKid+ · · Score: 3, Funny

      Wasn't there a recent story about how Uber is doomed?

      Maybe we should calling them, "Übel", instead of "Über" . . . ?

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    3. Re:The long, slow downfall has begun by mellon · · Score: 3, Interesting

      Yes, because nobody anywhere ever in a position of power was actually misogynist. Puhleeze. Speaking as a 50-year-old former misogynist, I can tell you that it all seems perfectly reasonable until one day you wake up and realize that you were being a complete self-involved asshole. But kids these days, they never listen. They have to see it for themselves.

    4. Re: The long, slow downfall has begun by ShanghaiBill · · Score: 4, Insightful

      Pretty much every corporation.

      So, the old "everybody does it" defense. That is baloney. Every big company has some unethical employees, but many companies have a basic culture of ethical responsibility. Uber is far worse than average, and the problem starts at the top. Travis Kalanick makes even Larry Ellison seem like a nice guy.

      Disclaimer: I didn't watch the video.

    5. Re:The long, slow downfall has begun by ShanghaiBill · · Score: 5, Insightful

      Isn't Uber "Over" in German anyway? Kinda prophetic.

      In English, "Over" can mean "above" or it can mean "finished". The German word "Uber" shares only the first meaning, but it can also mean "superior".

      These sorts of unshared dual meanings are one of the things that makes machine translation difficult. For instance, in Chinese the word "kai" can mean "open" and it can also mean "turn on". So when a native Chinese speaker is learning English, they will sometimes ask someone to "open the light". This can be especially confusing since the English phrase "close the switch" when properly translated to Chinese is "open the switch".

    6. Re: The long, slow downfall has begun by stealth_finger · · Score: 5, Insightful

      ....well, yeah?

      --
      Wanna buy a shirt?
      https://www.redbubble.com/people/stealthfinger/shop?asc=u
    7. Re:The long, slow downfall has begun by tehcyder · · Score: 5, Insightful

      Yeah this is starting to look like a hit job. An 'uber did X' story every 2-3 days. Anyone willing to dig and see the connections? Too lazy myself to do it. But it smells 'odd' and put on.

      Until recently almost all the Uber stories were presented as "cool disruptive Uber blocked by boring old laws yet again". This is just part of a correction to the overwhelmingly gushing treatment Uber have had here up to now.

      And, of course, I must be a shill for the legendary and all-powerful Taxi Cartel for daring to criticise Uber.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    8. Re: The long, slow downfall has begun by monkeyzoo · · Score: 3, Informative

      I agree! This video doesn't seem anywhere near as horrifying as many other things Kalanik has done.

      And yet, he issued this statement in response:
      "My job as your leader is to leadand that starts with behaving in a way that makes us all proud. That is not what I did, and it cannot be explained away. It’s clear this video is a reflection of me—and the criticism we’ve received is a stark reminder that I must fundamentally change as a leader and grow up. This is the first time I’ve been willing to admit that"

      Really?! He never thought calling his company "Boob-er" revealed his need to grow up?

      It's obviously an empty apology stemming from the heat he is feeling these days on all fronts.

  2. grand plan by fluffernutter · · Score: 3, Interesting

    I thought Uber's single goal was to put all possible forms of transportation out of business and essentially become a gatekeeper that will exact a toll from people who need to travel around and be mobile.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:grand plan by rtb61 · · Score: 4, Insightful

      Gees, no, where it the money in that. The goal is to create the illusion of profitability to pump and dump in an IPO and wander off a scamming billionaire. This with the full backing of the psychopathic banskters who control the US government.

      --
      Chaos - everything, everywhere, everywhen
  3. once you go black by turkeydance · · Score: 3, Funny

    you never....drop the price?

  4. The apology is enough to make you vomit. by Anonymous Coward · · Score: 5, Insightful

    The only thing he's sorry about is the fact he got CAUGHT. If there was no video, he certainly would NOT feel "ashamed", and the need to "grow up", and that driver would probably be finished. But his bitch-ass got caught, now he's sorry. What a douche.

  5. I don't see anything wrong with what he said by sinij · · Score: 3, Insightful

    I read linked article, and nothing in the transcript there stands out as wrong. You buy a $100K car to run Uber?! Take responsibility for your actions if it doesn't work out.

    Yes, Uber shits on everyone. Yes, Uber isn't socially responsible company. No, in this case CEO wasn't wrong in pointing out that it was driver, and not Uber that f-up.

    1. Re:I don't see anything wrong with what he said by Luthair · · Score: 4, Insightful

      Slightly over a month ago they were fined by the FTC for lying about the money drivers earn, lying about vehicle financing rates, lying about lease terms. Seeing a pattern here?

    2. Re:I don't see anything wrong with what he said by quantaman · · Score: 3, Insightful

      I read linked article, and nothing in the transcript there stands out as wrong. You buy a $100K car to run Uber?! Take responsibility for your actions if it doesn't work out.

      Yes, Uber shits on everyone. Yes, Uber isn't socially responsible company. No, in this case CEO wasn't wrong in pointing out that it was driver, and not Uber that f-up.

      That defence works for most scams as well, so what if it's a bad deal? You shoulda seen it, Buyer beware.

      The problem here is Uber's business model, and UberBlack really exacerbates it.

      Since the driver has to supply the vehicle (and for UberBlack they probably have to buy or lease one) it means they're taking a huge investment upon themselves.

      But then they don't have a lot of control over how that investment performs, Uber does. If Uber lowers the rate (as may have happened, it's unclear) you're suddenly getting a pay cut, or even if Uber has another PR disaster that drives away customers it's going to eat into your pay, and you don't have a lot of options other than abandoning your investment entirely.

      That's the whole problem with this concept of Uber drivers and contractors. Sure they have flexible hours, but they don't have the job mobility of other contractors. The driver wasn't mad at Kalanick because Uber dropped their fares, he was mad at Kalanick because Uber told him it would be a great idea to buy a luxury car and be an UberBlack driver, but then Uber didn't deliver the business he needed to recover his investment. But he's still stuck being an UberBlack driver because he bought a really expensive luxury car and there's nothing else he can do to try and recover the investment.

      --
      I stole this Sig
  6. Re:Plight? Gimme a break by Anonymous Coward · · Score: 5, Interesting

    They are indentured. As a UberBlack driver, he has a lease with Uber. That's the $97,000 he's talking about.

  7. Two personality types of long-term success CEOs by raymorris · · Score: 3, Insightful

    >> may cause some investors to question whether he has the disposition to lead a $69 billion company with a footprint that spans the globe.

    > "Pleasant temperament" doesn't seem to be a requirement for being CEO.

    I think the issue here isn't pleasant or unpleasant, but losing his cool a bit in a situation that shouldn't get a mature leader riled up. There's a time when being a dick might be the right move, when a smart person might *decide* to be aggressive. It doesn't look like he *chose* that as a tactic in this case, rather he lost his cool, he let emotions dictate his actions in an immature way. That's not the guy you want handling a billion dollar business deal - someone who will screw up a major deal because it's annoyed about some inconsequential thing. I want the opposite in a leader - John F. Kennedy very much kept his cool during the Cuban missile crisis, and possibly prevented World War 3 by being cool, calm, and collected - though not at all wimpy.

    Anyway, back to "pleasant disposition". It seems to me that being pleasant isn't a strict rrequirement, but it does help. There *is* a type of effective leader who might be described as "brutally honest", "clear", "no bullshit", or "tough". MOST CEOs who are successful over the long term aren't the tough type, though. MOST are very easy to get along with, they are the type of people that inspire loyalty in the people they work with, the kinds of people board members want to work with, and make friends with all different kinds of powerful people who can make deals happen. You don't make a billion dollar deal with Ford by being a dick to the Ford people and pissing off the Ford CEO. Contrast Obama and Trump - Obama is likeable (even though I disagree with him) and became CEO of the country. This a year after he himself said it would be irresponsible for him to run for president because he had no relevant experience or qualifications - but people *liked* him. People were surprised Trump even got the R nomination. Trump is "tough", "says what he means without sugar-coating it", "asshole". That type occasionally rises to the top, but likeable is more often found on top.

    It appears that the Uber CEO may understand that this is a weakness for him, that for him to continue as CEO and be successful, he needs to not be a prick in the future. Here's what he wrote on his email to all Uber employees:

    Team -

    By now I'm sure youâ(TM)ve seen the video where I treated an Uber driver disrespectfully. To say that I am ashamed is an extreme understatement. My job as your leader is to lead...and that starts with behaving in a way that makes us all proud. That is not what I did, and it cannot be explained away.

    Itâ(TM)s clear this video is a reflection of meâ"and the criticism weâ(TM)ve received is a stark reminder that I must fundamentally change as a leader and grow up. This is the first time Iâ(TM)ve been willing to admit that I need leadership help and I intend to get it.

    I want to profoundly apologize to Fawzi, as well as the driver and rider community, and to the Uber team.

    1. Re:Two personality types of long-term success CEOs by ShanghaiBill · · Score: 4, Insightful

      This email sounds sincere, which is, indeed, a good sign.

      Yes, it does indeed sound sincere. The PR consultant that wrote it deserves every dollar he was paid.

    2. Re:Two personality types of long-term success CEOs by Megol · · Score: 5, Informative

      Averted WWIII? Now that is a stupid and wholly incorrect way to put it, let me put the main points down and if you are interested to some reading:

      . The US placed nuclear missiles close to the USSR border on the territory of an ally.
      . The soviets didn't like that. not. one. bit.
      . So they arranged to place their missiles on the territory of one of their allies, close to the USA border.
      . They built missile bases on Cuba.
      . They began transporting missiles to those bases.

      . The US freaks out and want to sink ships legally sailing on international waters, bomb Cuba and a lot of other shit.
      . This is reported in media as if the USSR want to start a war (they didn't) and it is an incredible provocation (doing something that the US already had in place).

      . After a while the US secretly agrees to withdraw their missiles from the USSR border and the USSR says "okay, that's what we wanted in the first place" and turns their ships around.

      . This is painted as a win for the WESTERN WORLD against the eeeevil COMMUNIST CONSPIRACY and that the USSR weakened when shown the STRENGTH of the FREE WORLD. In reality the US fucked up and then tried to either start a war or do serious international crimes against other states.

      The ones that could have caused WWIII was the USA leadership and military. Anybody sane would realize that trying to make decapitation strikes possible against the enemy in a MAD world is... well, mad. That the USSR wouldn't try to change that state by doing something similar is beyond stupid.

  8. Let's see... by bferrell · · Score: 3, Insightful

    Uber's corporate philosophy is do it and if you get caught, say you're sorry... And keep doing it.

    His "apology" seems as if it may be worthless

  9. Burning that VC money by RubberDogBone · · Score: 5, Informative

    The driver is 100% right. Uber has set the fares so low, it is very hard to break even, much less make money. Under $3 to carry someone across town is not paying for anything. It's bullshit.

    At the same time, they are onboarding hundreds of new drivers every single week in my city. So they have tons of drivers competing with tons of drivers and everybody is losing money on damn pool rides. The worst thing is these new drivers are lured in with Uber fuel cards and Uber car leases they can get, but the fact is, you have to pay Uber for all that shit first before you make a dime. So if you lease a car from them, you are in the hole for $200 or more a week, before you turn the key and burn gas and your time.

    When I drove for Uber, it was very rare that I made $200 a week working 8 hours a day. The money wasn't there, once pool went live. So if I leased a car from Uber, I would owe my soul to the company store into infinity and not make a dime. My lawyer does bankruptcies and she says she sees tons of clueless Uber drivers who got into these leases promised a way to make them pay and then they find out there is NO way to make the lease payment and keep the car fueled, much less make any take home money.

    As long as clueless new drivers show up with dollar signs in their eyes, Uber will be happy to put them on the roads and ensure neither the existing drivers nor the new ones make anything.

    This will eventually fix the low fare issues as drivers just quit and new ones stop signing up. But then Uber will probably be entirely irrelevant anyway.

    Right now, Uber still sends me messages begging me to hit the road and drive. Guarantees of $20-40 an hour for making ONE trip per given hour. All sorts of promotions promising to double my earnings if I recruit someone else to drive. Who pays for this? Investor cash. Watch it burnnnnn.

    I would be tempted to drive for $20 to $40 an hour and make that one required trip, but I hate Uber so much at this point I don't give a shit. I am DONE driving for them. They can ripoff somebody else.

    --
    Sig for hire.
  10. Uber as a concept was great by LeftCoastThinker · · Score: 3, Insightful

    The sad thing is that Uber as a concept was a great idea, but it has slowly spiraled into an evil disaster of a company. It is very likely rotten from the top, and if I were a shareholder, I would kick this CEO to the curb and find someone who was both competent and fair to clean house and shape up the company. Uber has been on the wrong side of so many stories lately. I suspect that their strategy is to try and hold on and keep marketshare until they can introduce autonomous driving cars, which will net them massive profits and let them kick all those pesky "contractor" drivers to the curb.

    --
    If you disagree, please post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like
  11. Re:No by tehcyder · · Score: 3, Insightful

    The video shows off Kalanick's pugnacious personality and short temper, which may cause some investors to question whether he has the disposition to lead a $69 billion company with a footprint that spans the globe.

    "Pleasant temperament" doesn't seem to be a requirement for being CEO.

    The point about being a CEO is that you are supposed to sublimate your more sociopathic tendencies in the pursuit of profit. Wasting energy on arguing with your minions is a clear sign that your priorities are not straight, this is why Uber's CEO now has to admit that he needs leadership training.

    --
    To have a right to do a thing is not at all the same as to be right in doing it
  12. There were US leaders pushing a Kennedy to war by raymorris · · Score: 5, Interesting

    > The US freaks out and want to sink ships legally sailing on international waters, bomb Cuba and a lot of other shit. ...
    > The ones that could have caused WWIII was the USA leadership and military.

    Absolutely, there were high-ranking leaders, military, intelligence, and civilian leaders, who very much wanted to escalate the situation. Air strikes on Cuba were favored by many of Kennedy's advisors. My understanding, both from open sources and personal conversations with my uncle, an air force colonel who was involved, is that the people who wanted to escalate the situation were stopped by President Kennedy, with the advice of his brother. Another president may well have allowed the Pentagon to escalate the situation. A particularly timid president might have allowed the missiles to stay. According to my uncle, and many people who have studied the situation, President Kennedy went against the advice of almost everyone (other than his brother) by ordering them (in no uncertain terms) not to bomb or otherwise escalate the situation. Kruschev's foreign minister, Andrei Gromyko, agrees with the general consensus that Kennedy amd his ambassador also expertly manipulated Kruschev into a situation where he had to remove the missiles and couldn't demand much in return. That's agreed by both Soviet and American leaders involved (though Kruschev himself didn't admit he was outfoxed).