Uber, a losing platform that, by its own admission to the S-1 submission of claims, "suffered significant losses from the moment of creation "and" can not achieve profitability ", has overcome much on the way to today's initial placement of shares. However, this whole business model, which involves cost cutting, may possibly incorrectly classify the vast majority of its employees, is unstable, and any number of obstacles can easily send its soon-public stock on the same trajectory as the main competitor
What could be the obstacles for a company that had a "accumulated deficit of 7.9 billion dollars." Take it, Uber.
Our company will be adversely affected if drivers were classified as employees instead of independent contractors. Independent drivers' contract status is now being challenged in courts and government agencies in the United States and abroad. We are involved in numerous litigation around the world, including class action and collective lawsuits, arbitration claims, allegations and actions before administrative authorities, as well as investigations or audits of labor, social security and tax authorities that claim that drivers We should consider our employees (or employees or quasi-employees if there are such statuses) and not as independent contractors […] In addition, costs associated with protection, settlement or resolution are incomplete their and future lawsuits (including arbitration claims) regarding the independent status of a contractor for drivers can be essential for our business.
The good thing is that the latter part does not happen on a large scale – oh.
Changes in foreign, state and local laws regulating the determination or classification of independent contractors or judicial decisions regarding the classification of independent contractors may require drivers to be classified as workers (or employees or quasi-employees, if such status exists). Examples of recent court decisions related to the classification of independent contractors include the recent decision of the California State Supreme Court in Dynamex Operations West, Inc. against the Supreme Court
… a case that was found to be unfavorable to businesses such as Uber
Our success in this geographic market depends to a large extent on our ability to maintain or increase the scale of our network and liquidity on this geographical market by bringing drivers, consumers, restaurants, carriers and carriers to our platform […] If our service quality is reduced or our competitors' products reach more market entry, our competitors may develop faster e than we, and can reduce the effect of our network.
I do not see the reasons why consumers will be dissatisfied with quality or safety or will have a moral objection to its use.
[A] a reaction to us in response to the charges that we intended to win against protesting a ban on certain refugees and immigrants traveling to the United States calling on #DeleteUber, a social media campaign that prompted users Platforms to remove our application and stop using our platform. As a result of the #DeleteUber campaign, hundreds of thousands of consumers have ceased to use the Uber platform for several days after the campaign.
Oh, that's right. Wait, hundreds of thousands do you say?
The number of drivers and restaurants on our platform may decrease or fluctuate as a result of a number of factors, including drivers who cease to provide their services through our platform, accept or enforce local laws that limit our products and offers
New York recently imposed restrictions on driver and minimum wage. Californian drivers went on strike to achieve the same goals. Connecticut is inclined to adopt such legislation.
Continued driver discontent may also lead to a decrease in our number of platform users, which will reduce the liquidity of our network, which in turn can lead to further degradation of platform utilization.
Uber drivers in India and Great Britain began to strike massively. Taxi workers have been in demand for restrictions in Germany and Spain
Our international business, especially in countries where we have limited experience, puts us at a risk that we do not face to the same extent in the United States. These risks include […] difficulties in managing, increasing and providing human resources for international operations, including in countries where foreign workers can become part of trade unions, representative bodies of employees or collective agreements, and problems with cessation of work or slowing down of work
American drivers also participate in collective action.
Our focus on aggressive growth and intense competition, as well as our prior uncertainty of priorities, has led to increased regulatory control around the world.
Uberu was criticized for promoting a steady culture of sexual harassment that they were being prosecuted for stealing commercial secrets, and collecting data to evade power.
Although we administer certain qualification processes for platform users, including checking driver references through third-party service providers, these background and background qualification processes may not disclose all potentially relevant information and are limited in certain jurisdictions in accordance with national and local laws, and our third-party service providers may not be able to adequately verify and disclose information that could be relevant to the determination of compliance […]. assault, abuse and theft of consumers, or otherwise engage in criminal activity while using our platform
15% of our travel records that started or were completed at the airport […] Some airports currently regulate departures within airports, including requiring service providers to obtain licenses for individual airports , and some airports, especially those outside the United States, generally banned placement operations. […] Additional restrictions on our operations at airports or any requirements for issuing permits or cases of non-compliance by drivers would significantly undermine our operations.
It looks like a reasonable bet that they just stop.
If we can not develop and successfully commercialize autonomous vehicle technologies or do not develop such technologies in front of our competitors or if such technologies are not being implemented are expected to yield to competitors or perceived as less secure by our competitors or non-autonomous vehicles, our financial indicators and prospects will be negatively affected.
The Uber autonomous car struck and killed a woman in Tempe, Arizona last summer.
The benefits of consumers tend to shift to alternatives with lower costs during periods of recession and other periods that negatively affect existing income. In these circumstances, consumers can choose one of our lower-priced products, such as UberPOOL, for higher gross purchases per trip, can refuse our offer for cheap private vehicles or alternatives to public transport, or reduce the total number of miles that have passed. when economic activity decreases. Such a change in consumer behavior may reduce the liquidity of our network and may harm our business
Economists predict another recession very soon.
If we feel that there is a violation of the privacy, confidentiality or other unauthorized or unlawful access to or use of the destruction of our own or confidential data, employee data or platform user data, we may face loss of revenue, damage to our brand, business failure and significant Obligations.
Uber has disclosed personal data of almost 60 million people, has hidden this fact for more than a year. It ended up settling the claim for $ 148 million.
Our business is heavily dependent on operations outside the United States, including in markets where we have limited experience …
They may not be fully competent.
We will not be able to manage our growth effectively, which may damage our reputation and negatively affect our operating results.
Even their successes are likely to be discontinued.
In 2019, we plan to release a transparency report that will provide the public with data about sexual assault and other alleged incidents occurring on our platform in the United States. Public responses to this report on transparency or similar publicly reported security incidents that have been reported on our platform, which may include disclosure of reports submitted to regulatory authorities, may result in negative media coverage and regulatory control and may be negatively affected. on the reputation of our user platform.
It will be even worse.
We will need additional capital to support the growth of our business, and this capital may not be available under reasonable conditions or at all.
Uber would like to get your investment money