Uber , the money - losing ridehailing platform which by its own admission in its S-1 filing title it has “ incurred significant losses since inception ” and “ may not achieve profitability , ” has overcome a lot on the road to today ’s initial public offering . It ’s entire clientele model however — which demand cost - cutting by arguably misclassifying the overwhelming majority of its hands — is precarious , and any telephone number of obstacle could easily send its shortly - to - be - public inventory on the same downward trajectory as itschief rival .
What might those hurdles be for a company which had “ an accumulated shortfall of $ 7.9 billion ” as of last New Year ’s Eve ? Take it away , Uber .
Our concern would be adversely affect if Drivers were classified as employees instead of main contractor . The independent contractor status of Drivers is currently being challenged in court of justice and by government activity agency in the United States and abroad . We are affect in numerous legal proceedings globally , let in putative division and collective course of study action cause , demands for arbitrement , charges and claim before administrative agencies , and investigations or audit by labor , social security system , and revenue enhancement authorities that lay claim that gadget driver should be treat as our employee ( or as workers or quasi - employee where those statuses survive ) , rather than as main contractors [ … ] moreover , the costs colligate with defending , settle , or resolve pending and succeeding lawsuits ( including demands for arbitration ) link to the independent declarer status of driver could be material to our business .
Photo: Justin Sullivan (Getty)
Good affair that last part is n’t happeningon a monumental scaleanywh — oh .
Changes to foreign , state , and local constabulary governing the definition or categorization of sovereign contractors , or judicial decision regarding main contractor categorisation , could require compartmentalisation of Drivers as employee ( or workers or quasi - employees where those position exist ) . example of recent judicial decisions interrelate to independent contractile organ categorization let in the California Supreme Court ’s recent decision in Dynamex Operations West , Inc. v. Superior Court
… a case which was ruled unfavorably to businesses like Uber ’s .
Our success in a given geographical market importantly depend on our ability to maintain or increase our web scale of measurement and liquidity in that geographical securities industry by attracting equipment driver , consumer , restaurants , shippers , and carriers to our platform [ … ] If our inspection and repair quality diminish or our competitors ’ products accomplish greater market adoption , our competition may be able-bodied to grow at a straightaway rate than we do and may diminish our connection force .
Ca n’t seeany reasonconsumers would be distressed with the quality or safety of the service , or would have moral dissent to using it .
[ A ] repercussion against us in response to accusation that we signify to profit from a protestation against an executive ordering banning certain refugee and immigrant from enter the United States goad # DeleteUber , a social media campaign that boost weapons platform user to blue-pencil our app and cease consumption of our program . As a result of the # DeleteUber campaign , hundreds of thousands of consumer break off using the Uber chopine within 24-hour interval of the effort .
Oh right , that . look , hundreds of 1000 , you say ? !
The number of number one wood and restaurants on our platform could slump or fluctuate as a result of a act of agent , including driver ceasing to provide their serving through our platform , passage or enforcement of local laws limiting our products and offerings
New York recently levy adriver capandminimum wagerequirements . California driver went outon striketo accomplish the same goals . Connecticut is lean towards passingsimilar statute law .
Continued Driver dissatisfaction may also leave in a decline in our number of platform user , which would reduce our meshing fluidness , and which in act may make a further decline in weapons platform usage .
Uber drivers inIndiaand theUKhave gone on strike en masse shot . Taxi actor have struck to need caps on ridesharing inGermanyandSpain .
convey our business enterprise internationally , peculiarly in countries in which we have limited experience , subjects us to risks that we do not face to the same point in the United States . These risk include [ … ] difficulties in managing , growing , and staffing international operations , including in countries in which foreign employees may become part of labor mating , employee voice bodies , or corporate bargaining concord , and challenges tie in to employment stop or slowdown
U.S.-based driver areengagedincollectiveaction , too .
Our nidus on aggressive growth and vivid contention , and our anterior loser to prioritize abidance , has moderate to increased regulative examination globally .
Uber has been criticized for fostering a lasting culture ofsexual harassment , beensuedfor say theft of trade secrets , and used data collectionto evade potency .
Although we administer certain qualification procedure for exploiter of the weapons platform , including background check on Drivers through third - party service providers , these qualification process and scope checks may not expose all potentially relevant data and are fix in sure jurisdictions harmonize to internal and local laws , and our third - party inspection and repair provider may break down to conduct such background checks adequately or reveal information that could be relevant to a purpose of eligibility [ … ] There have been legion incident and allegations worldwide of Drivers , or individual impersonate Drivers , sexually assaulting , abusing , and kidnapping consumers , or otherwise lease in criminal activeness while using our platform
Theresurehavebeen .
15 % of our Ridesharing Gross Bookings from misstep that either start or were finish at an airport [ … ] sure drome presently regulate ridesharing within drome boundaries , including by mandating that ridesharing service providers obtain airport - specific licenses , and some airports , particularly those outside the United States , have shun ridesharing operations altogether . [ … ] extra BAN on our airport cognitive operation , or any countenance necessary or instance of non - compliance by Drivers , would importantly interrupt our surgical procedure .
Seems like a fresh wager that they ’ll just stop .
If we bomb to develop and successfully commercialize autonomous vehicle technologies or fail to develop such technologies before our competitors , or if such technologies break down to perform as require , are inferior to those of our competitors , or are perceived as less dependable than those of our rival or non - self-directed vehicle , our financial functioning and prospect would be adversely touch on .
An sovereign Uber vehiclestruck and killeda woman in Tempe , Arizona last summer .
Consumer predilection tend to careen to low-spirited - price alternatives during recessive periods and other periods in which disposable income is adversely affected . In such circumstances , consumers may choose to apply one of our lower toll - point product , such as UberPOOL , over a higher Gross Bookings per Trip offering , may choose to forego our offerings for lower - toll personal vehicle or public transport alternatives , or may reduce full miles travel as economic activity decreases . Such a shift in consumer behavior may reduce our internet fluidness and may harm our business
Economists are foretell another ceding back verysoon .
If we experience security or data privacy rift or other unauthorized or wrong access to , use of , or destruction of our proprietary or secret data point , employee data , or chopine user data point , we may confront loss of gross , scathe to our mark , business enterprise disruption , and significant liabilities .
Uber disclose the personal data point of almost 60 million masses , then blot out that fact forover a class . It ended up settling the resulting case for$148 million .
Our business is considerably dependent on operations outside the United States , including those in market in which we have limited experience …
They may not be only competent .
We may not be able to manage our increase in effect , which could damage our repute and negatively affect our operating results .
Even their successes are likely to become fuckups .
In 2019 , we plan to free a transparence report , which will provide the public with data related to reports of sexual rape and other guard incidents claimed to have occurred on our weapons platform in the United States . The public answer to this transparency study or similar public reportage of safety incidents claimed to have come about on our platform , which may include disclosure of reports provided to regulator , may result in negative culture medium coverage and increased regulatory examination and could adversely affect our reputation with platform users .
It ’s going to get worse .
We will need additional uppercase to support the growth of our business , and this capital might not be available on reasonable term or at all .
Uber would wish your investment money anyway .
Uber
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