The US mobility multinational is ending its food delivery business in Italy and exiting Israel, where it needs to build more market share. The moves were “in line with our efforts to focus on markets where we have opportunities for sustainable growth,” a company spokesperson said. The move will impact around 50 Uber employees and thousands of non-employee couriers and restaurants. It will also affect its mobility service in Italy, which relies on a network of taxi drivers connected through ride dispatcher IT Taxi.
Uber’s early super-aggressive expansion strategies worked better in countries with legal systems based on common law, where laws are flexible and open to interpretation. Still, it didn’t work well enough in China, where the government promotes domestic firms and fights back against Uber. In some countries, local competitors copied and improved upon Uber’s model, limiting its market share or even pushing it out of its markets altogether.
As a result, the company faced many lawsuits and investigations. Its brand was tarnished, and it faced an uphill battle to regain its lost reputation. But after the removal of founder and CEO Travis Kalanick in 2017 and a complete corporate clean-up, Uber recognized that it could only sustain its brand long-term with a profound culture change.
Khosrowshahi is trying to change this by focusing on the needs of workers and customers. For example, he has changed the company’s title from “employer” to “partner.” He’s focused on fixing problems and improving safety, including expanding access to a driver-training program, making it easier for drivers to request help, and providing more training options.
He’s also rethinking how the company communicates with governments and regulators. Instead of merely communicating through lawyers, he’s meeting with city managers and listening to what they say.
This approach may seem counterintuitive, but he’s taking the long view of building an organization that will thrive in the future. As he says, if you’re going to put your name on something, you should try to get it right. That means having the right people in leadership roles, ensuring that your product’s values align with the brand, and focusing on the company’s mission. By doing this, he hopes to create a truly global and successful company in the long run.
