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Businesses Transportation

Uber Lays Off Another 350 Employees Across Eats, Self-driving and Other Departments (techcrunch.com) 139

Uber has just laid off around 350 employees across a variety of teams within the organization, marking what the company says is its third and final phase of layoffs of the process it began earlier this year, Uber CEO Dara Khosrowshahi said to employees today in an email. From a report: Those affected include employees from Eats, performance marketing, Advanced Technologies Group, recruiting, as well as various teams within the global rides and platform departments. Some employees have also been asked to relocate. "Days like today are tough for us all, and the ELT and I will do everything we can to make certain that we won't need or have another day like this ahead of us," Khosrowshahi wrote in the email. "We all have to play a part by establishing a new normal in how we work: identifying and eliminating duplicate work, upholding high standards for performance, giving direct feedback and taking action when expectations aren't being met, and eliminating the bureaucracy that tends to creep as companies grow." In total, the layoffs represent about 1% of the company, an Uber spokesperson told TechCrunch. Further reading: Uber Posts $5.2 Billion Loss and Slowest Ever Growth Rate (August 2019).
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Uber Lays Off Another 350 Employees Across Eats, Self-driving and Other Departments

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  • Self driving? (Score:5, Interesting)

    by RightSaidFred99 ( 874576 ) on Monday October 14, 2019 @12:58PM (#59306188)
    Time for anyone involved in funding Uber to jump ship, lol. Self driving is the only way forward for Uber, if they aren't putting everything they can into that then they are doomed. CA, NY, and others are going to end Uber's business model with their meddling nonsense in terms of contractors vs. employees.
    • Everyone sensible (or isn't lying to make money) knows that self driving isn't going to happen any time soon, if ever.

      • Ever? Really? No doubt there has been a lot of self-driving hubris, but do you honestly think this might be an unsolvable tech problem?

        (I'm genuinely curious: to me it's all but guaranteed to be not an 'if' but a 'when')

      • Don't be absurd, of course it's going to happen. I agree it has been overhyped and people thought Teslas early versions meant it was "just around the corner" when it's not.

        It will certainly happen broadly within 25 years, and I'd wager more like 10-15 years. It will be possible in limited geographical areas well before that (see e.g. Waymo in the Phoenix area). The problem is people who think it's going to happen in

        • doh. happen in < 5 years.
        • Elon says before the end of 2020 ...

          https://www.wired.com/story/el... [wired.com]

    • Self driving is the only way forward for Uber, if they aren't putting everything they can into that then they are doomed.

      So you're in marketing.

      Why not just say so? (Just kidding; you did.)

      • Yeah, you caught me. I do my job by marketing to the least relevant relic of the pre-social media age I can find, Slashdot. My backup is Myspace, and I also sometimes astroturf on Usenet to really reach the masses.

        When I want to reach a larger, more reasonable audience than Slashdot I break out the old POTS modem and post on some old bulletin board forums still kicking around!

        • Yeah, you caught me. I do my job by marketing to the least relevant relic of the pre-social media age I can find, Slashdot. My backup is Myspace, and I also sometimes astroturf on Usenet to really reach the masses.

          When I want to reach a larger, more reasonable audience than Slashdot I break out the old POTS modem and post on some old bulletin board forums still kicking around!

          to be fair, he didn't say you "were" marketing. He said you were "in" marketing.

          Nuance.

        • d00d, if ur not on AOL, ur n0thing!
    • Self driving is the only way forward for Uber

      How so? Sure, you may get rid of the cost of drivers, but now they will be shouldering the cost of actually OWNING and MAINTAINING these self driving cars. That cost was previously offloaded to the drivers. Uber will not be profitable. Ever.

    • They WERE putting money into that, but between cutting edge AI R&D and paying to drive everyone around, their burn rate got too high, so they're waiting for Waymo to get their shit together before the loss is untenable.

  • by memory_register ( 6248354 ) on Monday October 14, 2019 @01:36PM (#59306360)
    A business would have profits or a reasonable path to profitability. Uber has neither; only a pie in the sky bet that self driving cars show up before the money runs out.
    • by DarkOx ( 621550 )

      ^^THIS^^

      While I have very little doubt self driving cars will be a reality in our time. I don't see Uber as anything but a huge multi-level scam. (although one I too have benefited from in the form of heavily subsidized rides).

      I don't see how Uber becomes profitable. Their only hope was to be first out the gate with self drive and control some important patents. Otherwise they would have to eat enormous capital costs of acquiring a fleet of vehicles which was going to be hard having burned through all th

      • ^^THIS^^

        While I have very little doubt self driving cars will be a reality in our time. I don't see Uber as anything but a huge multi-level scam. (although one I too have benefited from in the form of heavily subsidized rides).

        I don't see how Uber becomes profitable. Their only hope was to be first out the gate with self drive and control some important patents. Otherwise they would have to eat enormous capital costs of acquiring a fleet of vehicles which was going to be hard having burned through all their cash. Remember existing stock holders don't really like additional dilution of their ownership to raise more cash. Or someone other better capitalized company was going to just eat their lunch, once it was finally prepared.

        Uber doesn't charge enough for rides. There are plenty of people that would still need and use Uber, they could be profitable and drivers would get paid. I drove Uber for a lonnng time, and while it's great that a $9/hour worker at the mall can afford a 30 minute ride home at the end of their shift it isn't sustainable.

    • A business would have profits or a reasonable path to profitability. Uber has neither; only a pie in the sky bet that self driving cars show up before the money runs out.

      We said the same thing about Amazon for 20+ years. It operated in the red for decades, and we chided the suckers for continuing to pour venture capital in. And then Jeff Bezos discovered the Cloud, created Amazon Web Services, and Bam!, cash flow as wide as the river its named after.

      SHOULD Uber go under according to their business model? Yes. But so should Amazon have. Sometimes smart con men keep the suckers on the hook long enough to find something, anything, that's actually profitable. Who knows if Uber

      • And every money losing company is just like Amazon. They should bring Enron back.

      • We said the same thing about Amazon for 20+ years. It operated in the red for decades,

        Wrong. I know it's a common belief, but it's wrong. Amazon had a positive EBITDA [koyfin.com] back in 2002 - just 4 years after going IPO. And 7 years after founding. Nearly every quarter sees a profit - a small (often tiny) one, but a profit nevertheless. Amazon is a perfect example of how it's supposed to work - show great growth, in a new space, have a defined path to profitability (which it did when it filed IPO), and then transition to profit (if not already making it) within a year or two of IPO.

        • ...within a year or two of IPO.

          ... back in 2002 - just 4 years after going IPO.

          or 4.

          I worked for CDNOW - 97-99. Amazon was our biggest competitor , after we bought out Musicboulevard.com. The general consensus was "oh look at the bookstore trying to sell CD's. Then it was like , oh they are selling other merch too. Then it was like oh , they are selling more CD's than us too.... the bookstore.

          They are a beast.

          • ...within a year or two of IPO.

            ... back in 2002 - just 4 years after going IPO.

            or 4.

            I worked for CDNOW - 97-99. Amazon was our biggest competitor , after we bought out Musicboulevard.com. The general consensus was "oh look at the bookstore trying to sell CD's. Then it was like , oh they are selling other merch too. Then it was like oh , they are selling more CD's than us too.... the bookstore.

            They are a beast.

            For the record, I did tell anyone that would listen that it was genius to take advantage of the existing traffic.

  • in a company that keeps losing money. Until this article" [qz.com].

    TL;DR; is that private investments like Uber have very high rates of return (10-16%) because they're high risk. Pension funds will invest in them too.

    So what happens is this: 1%ers invest in Uber and companies like them, as do pension fund managers. When the company inevitably collapses the 1%ers, being much more nimble (and probably having some inside knowledge) get out quick, leaving the public pension funds holding the bag.

    When the pens
  • by ErichTheRed ( 39327 ) on Monday October 14, 2019 @02:08PM (#59306518)

    I was just starting in the IT world as the First Dotcom Bubble was inflating in the late 90s. The only difference between this one and the last one is that individual investors aren't involved as much. Other than that, it's the same...way too much VC money sloshing around, crazy partying founder CEOs, startup kids working 90 hours a week for free food and stock options, wacky office space...you name it, it's just like they took the 90s bubble and said, "Let's do that again!"

    There are actually other differences too...public cloud is allowing flaky business models to live on longer, hoping to make money with exposure. Now the founders don't have to raise $100 million for data centers...they just put it on credit and hope they'll be bought out or IPO before the money runs out.

    Between the WeWork IPO being cancelled, below-IPO valuations and Uber getting rid of staff, plus the days of cheap credit coming to an end soon...I think it's time for the expansionary party to end unfortunately. It's too bad...just like you could make 6 figures in 1990s money for HTML design, anyone who can fog a mirror and say "DevOps" is making $200k+ in NYC and SV/SF. It's going to be a rude awakening for those who've ever known good times. The Uber thing is just a sign of the money faucet being turned off...some places really went on a hiring frenzy.

    • by DarkOx ( 621550 )

      I tend to agree with you here; but I don't know the cheap credit is coming to an end. Unlike the 90's the entire Western Hemisphere has a unified political goal of keeping borrowing cheap. Because the cheap credit bubble goes way beyond the tech bubble. Its the entire monetary system that is built on cheap credit now. When the private cheap credit bubble popped; the solution they chose was a to make it a public debt bubble. There is no fixing that if it pops; that is when governments collapse; so until th

      • I tend to agree with you here; but I don't know the cheap credit is coming to an end. Unlike the 90's the entire Western Hemisphere has a unified political goal of keeping borrowing cheap. Because the cheap credit bubble goes way beyond the tech bubble. Its the entire monetary system that is built on cheap credit now..

        The entire Western Hemisphere had a unified political position to keep real estate credit flowing 12 years ago too. You saw how that turned out.

        Whether it's real estate or credit cards, what can't go on forever, won't. Sooner or later, someone is going to make that margin call, and the dominos come tumbling down.

    • It's too bad...just like you could make 6 figures in 1990s money for HTML design, anyone who can fog a mirror and say "DevOps" is making $200k+ in NYC and SV/SF. It's going to be a rude awakening for those who've ever known good times.

      It's not just a rude awakening they're in for. Even worse, if the original Dot Bomb was any guide, most of those people won't ever make that kind of money anymore. Hell, most will end up in jobs that won't even sniff that kind of money. Their old jobs follow them around like a rotting haze. Do you think many of the DrKoop.com IT staff went on to big things later? A lot of those guys end up leaving IT altogether, and if they stay in, many end up taking other jobs (such as moving from coding to general Sysadm

    • Now the founders don't have to raise $100 million for data centers...they just put it on credit and hope they'll be bought out or IPO before the money runs out.

      Much of what you say holds merit. But where do i sign up for my $100 million line of credit?

  • Maybe the robots should form a union.

  • by bloodhawk ( 813939 ) on Monday October 14, 2019 @03:17PM (#59306814)
    The shit that bugs me most about uber is they whined and bitched together with their supporters that governments had to let them do business and shut down taxis and other hire car services as they simply had a better more competitive business model. They didn't and they don't, they rely on underpaying drivers AND STILL make a huge loss. That is not competition! that is anti competitive
    • by DogDude ( 805747 )
      The cities should never have let them operate. They are operating illegal taxi services, and should be shut down and the owners should be fined and arrested. I don't know why cities all over the world decided not to enforce their laws when it comes to Uber/Lyft. If I owned a taxi company, I'd be suing the shit out of the municipalities that I worked in, and forced them to either enforce or change their laws.
      • No, they always should have been allowed to operate. What they should not have been allowed to do is bypass local regulations that made those sectors viable.

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