Case 3 - Corp Culture (Org Design & Structure) PDF

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Case 3: A Culture of Profit vs a Culture of People – Comparing the Corporate Cultures of Uber and Lyft...

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COMPARING CULTURES OF UBER AND LYFT 1

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Ca n d i c eMa r k Sc h o o lo fBu s i ne s s ,Li b e r t yUn i v e r s i t y

Aut ho rNo t e Ca n di c eMa r k Ih a v en okn o wnc o n fli c to fi n t e r e s t t od i s c l o s e . Co r r e s po n d e n c ec o nc e r n i n gt h i sa r t i c l es h o u l db ea dd r e s s e dt oCa nd i c eMa r k. Ema i l :c ma r k 2 @l i b e r t y . e d u

COMPARING CULTURES OF UBER AND LYFT 2 Ca s e3 :ACul t ur eo fPr ofitv saCul t ur eofPe o pl e–Co mpa r i ngt he Co r po r a t eCul t ur e so fUbe ra ndLy f t Co r p o r a t ec ul t u r er e f e r st ot h es h a r e ds e to fv a l ue s , p r a c t i c e s , a n ds t a n d a r d st h a ta r e u p h e l db ya l la c t o r swi t h i na no r g a n i z a t i o n , wi t hr oo mf o rn e wv a l u e sa n ddi ffe r e ntv i e wst h a t wi l lhe l pt h efir mp r o g r e s sa n dk e e pu pwi t hc e r t a i nt r e nd sp r e v a l e n ti nc ur r e n ts o c i e t y( Gor t o n& Ze n t e fis , 2 0 1 9 ) . Ube ra n dLyf tc u r r e n t l yp os s e s sa l mos ti d e n t i c a lc o r p o r a t ec u l t ur e swi t haf o c u s o npe o pl eo v e rp r o fit , wi t hb o t hp r i o r i t i z i n gt h ec us t o me ra n du n d e r s t a nd i n gt h el o n g t e r mv a l ue o fs h o r t t e r ml o s s e s( Ub e rTe c h n o l o gi e sI n c . , 2 0 20 ) .Bo t hc omp a n i e s ’fle x i bl efla ts t r uc t u r e swi t h l e a nc o r p o r a t eh i e r a r c h i e sa l l o wf o rd r i v e r st oc o nt r o lt h e i rs c he d ul e sa n dwa ge s , s h o wi n gb o t h c ul t u r e sp r i or i t i z et hel o we rl e v e l so ft h e i ro r g a ni z a t i o n st os o mee x t e n t( Da f t , 20 2 1 ) . Ho we v e r , e a r l yUb e rc ou l dn o tb emo r ec u l t u r a l l yd i ffe r e n tt ha ni to rLyf ti st o d a y . Tou nd e r s t a n dh o wa nd wh yUb e r ’ sc ul t u r ec h a n g e do v e rt h ey e a r s ,i two u l db ef r u i t f ult oc o n t r a s tUb e r ’ sc u l t u r eu n d e r Tr a v i sKa l a ni c kwi t ht h ec on s i s t e n tc u l t ur eofLy f t( Ba r i s o ,20 1 9 ) . Fu r t h e r , t h e s er e s p e c t i v e c ul t u r e smu s t bec omp a r e dt h r o u ght h e i rs t r e n g t h s ,we a kn e s s e s , a n dt h e i ri mp a c to n o r g a n i z a t i on a ls t r a t e g y . Ube r ’ sSt r a t e g yandCul t ur eUnde rKa l a ni c k Ub e r , u n d e rf or me rCEOa n dc o f o u n d e rTr a v i sKa l a n i c k ’ sl e a d e r s hi p , e x h i bi t e da n a gg r e s s i v ea l b e i te ffic i e ntg r o wt hs t r a t e g yt ok e e pt h ec o mp a n ymo vi n gf o r wa r d , b yd i v e r s i f y i n g i n t os e g me n t so t h e rt h a nj u s tr i de s ha r i n gs u c ha sf o o d d e l i v e r y , f r e i gh t / l o g i s t i c s , a n ds e l f d r i v i n g t e c h no l o g y( Fe i n e r , 20 1 9 ) . Ka l a n i c k ’ sa pp r o a c hi n c l u d e dt a c t i c ss u c ha sl a u n c h i n ga h e a do ft he c o mp e t i t i o nr e g a r d l e s so ft h es t a k e s ,fig ht i n ga g a i ns tp r e v a i l i n gi n t e r n a t i o na la n dd o me s t i cl a ws i f / wh e nt h e yg o ti nt h ewa yo ft h ec omp a n y , a n de s t a bl i s h i n gac ul t u r eo fs e l f f u l fil l me n t( Co o ke t

COMPARING CULTURES OF UBER AND LYFT 3 a l . ,2 0 1 8 ) . Th i ss t r a t e g yl e dt oas e r i e so fa d v e r s eo u t c o me so nt h ea l mo s t f o r g o t t e na s p e c to f c o r p o r a t ec u l t u r ewi t h i nUbe r , a ss e v e r a lme mb e r si nUb e r ’ sg o v e r n a n c ef e l tc o mp e l l e dt or e s i g n , e mp l o y e e se x p e r i e n c e ds e x i s ma n ds e l fis hmi n d s e t s ,r i d e r swe r et a k e na d v a n t a g eofd u r i n g h o r r i bl ewe a t he rdu et oi n c r e a s e dd e ma n df o rc a b sa n dv a r i o usc l a i mso fs e x ua la s s a u l tb y u n v e t t e dd r i v e r s , a n dt h ec o mp a n y ’ smu l t i p l epr i v a c ya n dr e g ul a t o r yv i ol a t i o n s( Kl e i nma n , 2 0 17 ) . Fi g h t i n ga g a i n s t , i g n o r i n g ,a ndflo u t i n gt h el a wa sof t e na sUbe rd i dh a sl e dt oac o r p o r a t ec ul t u r e “ gr o un d e di nac e r t a i nd i s d a i nf o rt h el a w… e mp o we r i n ge mp l o y e e s“ t oi g n o r ema n yo rmo s t l a ws ”( Ede l ma n , 2 01 5 , p . 7 ) . I no t h e rwo r d s , t hi sc a s er e v e r b e r a t e st h eb i b l i c a le xa mp l eo fPha r a o hi g n o r i n gGod ’ s r e p e a t e dc o mma n d st ol e tt h eI s r a e l i t e sg o ,u n t i lGo dh a r d e ne dPh a r a o h ’ sh e a r ts ot h a tn o t h i n g wo u l dp e r s u a d eh i mt ol i s t e nt oGod , ma ki n gh i me ffe c t i v e l yal o s tc a u s e( Ne wKi n gJ a me s Ve r s i o n ,1 9 8 2 / 20 1 3 , Ex o d u s11 : 1 0 ) . Un l i k eAi r b n bwh i c hc o n s t a nt l yf ou g h t a g a i n s ti l l e g a l b e h a v i o rb yi n s t i t u t i n gn e wp o l i c i e sa n dl i a b i l i t yi n s u r a n c et oh e l pr e n t e ra b u s eo fh os t s ’ p r op e r t i e s , Ub e rc o n s t a n t l yf o u g h t a g a i n s tt h el a wa n di gn o r e do rd e n i e da l mo s ta l lo ft h e c o mp l a i n t st ha ta r o s ea g a i n s tt h ec o mp a n y , j u s tl i k ePh a r a o h ,r e s ul t i n gi ns t e a d yb a c kl a s ha n d wi t h d r a wa lo fs u p po r tf r o mi n v e s t o r s , c u s t o me r s , e mp l o y e e s , a n dr e p o r t e r sa l i k e( J or d a n , 20 1 7 ) . Ka l a ni c kl a r g e l yi n v e s t e di nb e t t e ra l g o r i t h msa n dt e c h n o l o gyt oma k et hea ppd omo s to ft h e h e a vyl i f t i nga n ds i mul t a n e o u s l yp op u l a r i z et h eUb e rb r a n d, r e a l i z i n gt o ol a t et h a ta l g o r i t h ms c a n n otr e p l a c ear e s p o ns i bl et e a mo fc o r po r a t el e a d e r swh oc a nu n d e r s t a n dt h ed y n a mi c so f c ul t u r a ln o r ms , i n s p i r ewo r ke t h i c s , a t t i t u d e s , a n dv a l u e s , a n dp r o a c t i v e l yc o meu pwi t hs ol u t i on s t ofixs e r i o u sp r o b l e ms( J o r d a n , 2 0 1 7;Gr i ffit he ta l . , 2 0 1 8 ) . St r e ngt hs ,We a kne s s e sa ndUbe r ’ sCul t ur e ’ sSt r a t e g i cI mpa c t

COMPARING CULTURES OF UBER AND LYFT 4 Ka l a n i c k’ sh us t l e o r i e n t e dt y p eo fc u l t ur ema i na d va n t a g ewa st h a ti tpe r s o n i fie dh i so wn v a l u es y s t e mi nh y p e rf oc us i n go nd i s r u p t i n gi n no v a t i ona n dgr o wt hi nt h et r a n s p o r t a t i o ni n d u s t r y i no r d e rt obe c o met hef a s t e s t gr o wi n gs t a r t upi nt hes ha r i n ge c o n o my( Co o ke ta l . , 2 0 1 8 ;Spo t t , 2 0 1 8 ) . Ub e r ’ sr a p i dgr o wt hi nt h et a x ib u s i n e s sc o mbi n e dt h ebe n e fit so fmi ni ma lc a p i t a l e x p e n di t ur ea n ds ma r t p ho n et e c h n o l og i e s , pa vi n gt h ewa yf o ri n t e r me d i a r i e st h a to p e r a t e db y t a ki ngac uto fe v e r yt r a n s a c t i o nt h a to c c u r r e dv i at h e i ra pp s( J o r d a n, 2 0 1 7 ) . Th es e r v i c e so ffe r e d b yUb e rwe r ec e r t a i n l yd e s i r a b l et oc u s t ome r s( Ed e l ma n , 20 1 5 ) . Sp ot t( 2 01 8 )f u r t he re xp l a i n s h o wKa l a n i c k ’ swho l ea p p r o a c hwa sv e r ya v a n t g a r d ei n i t i a l l y ,b e i n gha i l e db yF o r b e si n2 0 1 3a s Si l i c o nVa l l e y ’ sr e b e l h e r owi t hal e a d e r s h i ps t y l et h a twa sc o n s i d e r e dc o c k y , d i s r u p t i v e , c o nfid e n t , a n du l t i ma t e l ye ffe c t i v e . Cur r e n tCEODa r aKh os r o ws h a hia l s og a v ec r e d i tt o Ka l a ni c k ’ ss t r a t e g y , t e r mi n gi ta“ f o r wa r d l e a n i n g , f e a r l e s sa p pr o a c ht h a th a su nd e r p i n ne dmu c h o fUb e r ’ ss u c c e s sa n dha sa t t r a c t e dma n ye mp l o y e e s ,i n c l u d i n g[ h i m] , t ot h ec o mp a n y ( Kh o s r o ws h a h i , 2 01 7 , p a r a . 1 ) . I nf a c t , Ub e r ’ sa g g r e s s i v ec u l t u r ea n dgr o wt hr e s u l t e di nt h e g e n e r a t i ono fu n p r e c e d e n t e dr e v e n ue swo r l d wi d e ,a t t r a c t i n gt hea t t e nt i ono fi n v e s t o r sl i k eJ e ff Be z o s , Sh a wnFa n n i n go fNa p s t e r , a n dBi l lGu r l e yo fBe n c hma r k( Co o ke ta l . , 2 0 18 ) .Co u p l e d wi t hh e a v yi n v e s t me n t ,Ub e rwa sp r o p e l l e dt os u c c e s sp a r t l yb e c a u s emos t o ft h ee x e c u t i v et e a m we r ep e r s o n a lf r i e nd s / s u p p or t e r so fKa l a n i c k( Ve r s c h oo r , 2 0 17 ) ,a l l o wi n gt h ema na g e me n tt oc a l l a l lt hes ho t sq u i c kl ya n de ffic i e n t l y .Th ec o mpa n y ’ ss t r e n gt hl a yi nKa l a n i c k ’ su n i nhi bi t e dd r i v et o a c h i e v ema r k e td o mi n a n c ea n dg l o b a le xp a ns i o n( Co o ke ta l . ,2 0 1 8 ) . Ho we v e r , by2 0 15 , Ka l a n i c k ’ so n c es u c c e s s f u ls t r a t e g ywa sg a r n e r i n gs e r i o u sa t t e n t i o n a n dt e r me da s“ r u t h l e s s , pr e d a t o r y…[ a nd ]a b u s i v e ”( Sp o t t ,2 0 1 8 , p . 6) , a si n v e s t o r sb e g a n d e s c r i b i n gUb e ra sSi l i c onVa l l e y ’ s“ mo s te t h i c a l l yc h a l l e n g e dc o mp a n y ”( Sp o t t ,2 0 1 8 , p .6 ) .

COMPARING CULTURES OF UBER AND LYFT 5 Co r p o r a t ec ul t ur eun d e rKa l a n i c ks u ffe r e dg r e a t l ya ndwa sl a r g e l yb l a me do nUb e r ’ sl e a d e r s h i p wh i c hd i dn o tfig h ta g a i ns ti l l e g a lb e h a v i o rb ute n c o u r a g e di ti no r d e rt ofig h ta g a i n s tt h e i n c r e a s i n gc o mp e t i t i o ni nt heg l o b a ls c a l eb y2 0 1 7( Co o ke ta l . ,2 0 1 8 ) , a se vi d e nc e db yUb e r ’ s t h r e a t st odi gu pd i r to nt h o s ewh owe r ec r i t i c a loft h ec o mpa n y , i t sh e a d q ua r t e r sb e i n ga b l et o ‘ Go d v i e w’a n dt r a c ka l la p pu s e r swi t h o uta n on y mi t yp r o t o c o l si np l a c et op r o t e c tu s e rp r i v a c y , t h en u mb e ro fe mp l o y e e sa n de x e c ut i v e si n v o l v e di ns e xu a lha r a s s me n tc a s e s ,a n dt hema n yl a ws a n dr e g u l a t i on st h a twe r eu t t e r l ydi s r e g a r d e da n dbr o k e ni nUb e r ’ sp u r s ui to fc r e a t i n gs e l f dr i v i n g t a xi s ,a l lwhi l ec h a r g i n gr i d e r sun n e c e s s a r yf e e sa n de a t i n gi n t od r i v e r s ’s h r i n ki n ge a r n i n g s ( J or d a n ,2 01 7 ) . T oma k ei two r s e , t h ea c c e p t a n c eo fun f a i rt r e a t me n ta n ds e xu a lh a r a s s me nti nt h e wo r k p l a c el e dt os e r i o u sa l l e g a t i o n sf r omr i d e r sa r o un dt h ewor l dh a v i n gt ode a lwi t h i n a p p r o p r i a t eb e h a v i o r , d i s c r i mi n a t i o n , a n de v e nr a p ef r o mUbe r ’ sd r i v e r s( Gr i ffit he ta l . , 2 0 1 8) , p r o v i n gj u s th o wr e fle c t i v ec u s t o me rs e r v i c ea n de mp l o y e e / c o n t r a c t o rb e h a v i o rwa so fUbe r ’ s l e a d e r s h i pa n dt o x i cc o r p o r a t ec ul t ur e . Ce r t a i n l y ,a sc o n s u me r sg r e wmor ea wa r ea n da n g r i e r a b ou tUb e r ’ sa b u s i v ec u l t u r e , p e r s o n a lg r i e v a n c e s ,a n ds e c u r i t yc o nc e r n s , Ub e re x p e r i e n c e d a d v e r s ei mp a c t so ni t sr e v e n u e sa n dwo r d o f mo u t hpr o mo t i o n s( Coo ke ta l . , 2 0 1 8;Gr i ffit he ta l . , 2 0 1 8 ) . Go i n gf o r wa r d , Ub e rha sa d mi t t e dt ha tt h ec omp a n y , p r i o rt oDa r aKh o s r o ws h a h i , f oc us e d o n l yo ni t sb u s i n e s s e sa n dv e r yl i t t l eo ni t se mpl o ye e sa n dc u l t u r e , wh i c hwi l ln e e dt oc h a n g e u n d e rn e wl e a de r s h i pa n dr e c t i f y i n gUb e r ’ so r g a n i z a t i on a ld e s i g n ,c ul t u r e , a n de mp l o y e ev a l u e wi l lbe c o meap r i o r i t y( Ub e rPr e s sTe a m,2 0 1 7 ) . Ka l a n i c k’ sb l a t a n td i s r e g a r df o rt h el a wso ft h ec ou n t r y , p e r c e i v e di n s e n s i t i v i t y , f a v or t o wa r d si n a p p r o p r i a t eb e h a v i or ,a ndi n a b i l i t yt oa c c e p ta n dl e a r nf r o mmi s t a k e s( Co o ke ta l . , 2 0 1 8 ;Ed e l ma n, 2 0 1 5 )mi r r orKi n gSa u l ’ sr i s ea n df a l la sr u l e rofI s r a e l , wh e r e i nt h er o l eo fGo d

COMPARING CULTURES OF UBER AND LYFT 6 wa si g n o r e d/ r e j e c t e da n dr e p l a c e db yt h eI s r a e l i t e swh oi n i t i a l l ye x a l t e dSa u la st h e i rs o l e mo na r c ha tt hee x pe n s eo ft h e i rGod( J a c ob s , 20 1 8 ,p . 19 6 ) . AsKi n gSa u ln e a r e dt h ee n do fhi s r e i g n , h ewa si n s a n e l yj e a l o u so ft h ec o mpe t i t i o np o s e db yDa v i d( Ne wKi n gJ a me sVe r s i o n , 1 9 8 2 / 20 1 3 , 1Sa mu e l1 8 )( j u s ta sUb e rwa su n he a l t hi l yc omp e t i t i v ea g a i ns tLyf t ) ,h ed i s o be y e d Go d ’ sl a wb ye n g a g i n gi nn e c r o ma n c ya n dc h o o s i n gt os a t i s f yh i sp e o p l ei n s t e a do ft heLo r d( 1 Sa mu e l15 )( j u s t a sUb e rg a v ei nt ot h ed e v i a n td e ma n d sofd r i v e r sa n dr i d e r swh i l ea l s ob r e a ki n g t h el a wi nmu l t i pl ei n s t a nc e s ) , a n dwa swa se v e n t u a l l yr e p l a c e db yt hen e wl ya no i n t e dKi ng Da v i d( 1Sa mu e l1 6)( j u s ta sKa l a ni c kwa sf or c e dt or e s i g na sCEOa ndr e p l a c e db yn e w ma na g e me n t )( Mi c ha e l , 2 02 0 ;Sp o t t , 2 0 1 8) . Lyf t ’ sSt r a t e gya ndCul t ur e Ly f t ’ ss t r a t e g yi smo r eo faf o l l o we r s t r a t e gywh e r e a sUb e rp i o n e e r e di nt h er i de s ha r i n g p l a t f o r mi n du s t r y( Coo ke ta l . , 2 0 1 8 ) , b e c o mi n gUbe r ’ sp r i ma r yc o mp e t i t o ri nt h eUn i t e dSt a t e s t h r o u ghh e a v yi n v e s t me nt sf r o m Ch i n e s ei n v e s t o r sa ndGe n e r a lMo t o r sa l o n gwi t hpa r t n e r s h i p s wi t hDe l t aa i r l i ne s , Go o g l e ’ ss e l f d r i v i n gs ub s i d i a r y , a n dmor e( J or d a n , 2 01 7 ) . Byf o c u s i n gi t s e ffo r t swi t h i nt h et r a n s p o r t a t i o ni n d u s t r ya so p p o s e dt oUbe r ’ si n t e r n a t i o na l ,h i g hl yd i v e r s i fie d v e r t i c a l s ,Ly f tp r e d i c t st ob e c o met h ep r e f e r r e d , mo r es t a b l er i de s h a r i n gs e r v i c ei nt h eU. S. a n d Ca na d a( Ma r s h a l l , 2 0 20 ) .I nt h ep a s t , Ly f twa st h ep r e f e r r e ds e r v i c ewh e n e v e rUb e r ’ ss c a n d a l o u s b e h a v i o rma d eh e a dl i n e s , pa r t i c ul a r l ywh e na )t he#De l e t e Ub e rs o c i a lme di ac a mp a i gnt o o ko ff d u r i n gUb e r ’ si n f a myo v e ri t ss e x u a lh a r a s s me n tc a s e sa n dr e s u l t e di n2 0 0 , 0 0 0d e l e t i o n so ft h e Ub e ra p pa n db )Ka l a n i c k ’ si ns e n s i t i v i t yt o wa r d sd r i v e r sa n dp ol i t i c sl e dt oo v e r4 0 0, 0 0 0a c c o u n t d e l e t i o n sa n da6 0% i n c r e a s ei nn e wu s e r so fLy f t( Co o ke ta l . , 20 1 8 , p . 44 45 ) .AsVe r s c h o o r ( 2 01 7 )p o i n t e do ut , Ub e r ’ sp r e d a t or yc u l t u r ec a us e di t sma r k e ts h a r et od e c l i n ewh i l eLy f t

COMPARING CULTURES OF UBER AND LYFT 7 i n c r e a s e d , s h o wi n gt h a tLy f twa sb yf a ras i g n i fic a ntc o mpe t i t o rf o rUb e ri nt h eUn i t e dSt a t e s . Mo r e o v e r , Ly f tCEOJ o h nZi mme rs u g g e s t st h a tLy f tmi g h tb es e e i ngmo r es u c c e s sd u et ot h e f a c ti ti ss t i l ll e db yi t sc o f ou n d e r s , u n l i k eUbe r ’ sr e c e n t l yr e s i g n e dc o f o un d e rKa l a n i c k , wh i c h e n a b l e st h e mt ob e t t e ru p h o l da n de n f o r c et h e i rb r a n dv a l u e sa n dc o r p o r a t ec ul t u r e( Fe i n e r , 2 0 1 9 ) . Ly f t ’ sc u l t u r ea n dl e a d e r s h i pa r er e mi n i s c e n to fKi n gDa v i dl e a r n i n gf r o mt h emi s t a ke so f h i sp r e de c e s s o r , Ki n gSa u l .Wh i l eSa u ll o s ts i gh t o fh i sfir s tl o v e , Da v i dp r a y e dt on e v e rl o s es i g h t o fo rs t r a yt o of a ra wa yf r o mh i ss e c u r er e l a t i o n s hi pwi t hGo d( Ne wKi n gJ a me sVe r s i o n , 1 9 8 2 / 20 1 3 , 1Sa mu e l1 5 : 1 1 ;1Sa mu e l1 8 : 1 21 4) . Si mi l a r l y , Ly f th a sr e p e a t e d l yv o we dt on e v e r l o s es i g h to fi t sc u l t ur e , d r i v e , a n dc o mmu ni t i e s .Wh e t h e ri tc o nt i n u e st os t a n db yt h a tp r o mi s e r e ma i n st ob es e e n , a se v e nKi n gDa v i d,t h ema na f t e rGo d ’ so wnh e a r t( Ne wKi n gJ a me s Ve r s i o n ,1 9 8 2 / 20 1 3 , 1Sa mu e l1 3 : 1 4 ) , f e l ls e v e r a lt i me swh e nt h ep o we ra n dpo p u l a r i t yg o tt oh i s h e a d( Ne wKi n gJ ame sVe r s i o n ,1 9 8 2 / 2 0 1 3 , 2Sa mu e l1 1 : 1 –1 2 : 2 3 ;2Sa mu e l2 4 : 1 0 ) . St r e ngt hs ,We a kne s s e s ,a ndCul t ur e ’ sSt r at e g i cI mpac t Ly f tt a ke sc a r et oe n s u r ei ta l wa y spr i o r i t i z e sc o mmu n i t i e sa n dc ul t u r e , p r o v i n gs ob y a p po i n t i ngaHe a do fI n c l u s i o n&Di v e r s i t yi nt h e i ror g a n i z a t i o n a lc h a r td e d i c a t e dt oma ki n gLyf t a ne mp o we r i n gc o mp a n yt owo r kwi t ha n de mp h a s i z i n gt h ei mp a c to fas o l i dc o r p o r a t ec u l t u r eo n o r g a n i z a t i on a ln o r msa n dqu a l i t yo fwo r k( Hume s ,2 0 1 8 ) . Fur t h e r , Ly f tv a l u e si t se mp l o y e e sa n d , u n l i k eUbe rwh i c hl a r g e l yp r i o r i t i z e di t se x e c u t i v e sa n di n v e s t o r s , Ly f te n a b l e si t ss t a fft of e e ll i k e t h e ya r ei n di v i du a l l yr e s p o n s i b l ef o rt h ec o mp a ny ’ ss u c c e s sb yc o mmun i c a t i n go r g a n i z a t i o n a l g o a l s , p u b l i c l yc e l e b r a t i n gt h e i ra c h i e v e me n t so nr e g u l a rb a s i s , a s ki n gf o ra n da c c e p t i n gt h e i r f e e db a c k , a n dg i vi n go u t a wa r d sa n dr e c o g n i t i o nt oe mp l o y e e sa n ddr i v e r sa l i k e( Bu c h a na n ,

COMPARING CULTURES OF UBER AND LYFT 8 2 0 1 5 ) . I ndo i n gs o , Ly f tf os t e r sawo r k p l a c ec u l t ur ewh e r e i na l le mp l o y e e s , r e g a r d l e s so ft h e i r s t a g ei nl i f e , s e x ,o rr a c e , a r ec e l e b r a t e da n dwe l c o me d( Ly f tCa r e e r s , n. d . ;Hu me s , 20 1 8 ) . Ar me d wi t hac l e a n e rr e p ut a t i o n ,f r i e n d l i e rd r i v e r s , a ndmo r eh e l p f ulc us t o me rs u p po r ta g e n t s( He l l i n g , 2 0 2 1 ) , Lyf ti sa l l s e tt oga i nal o y a lc u s t ome r b a s ewi t hat ho r o u g hl yd e v e l o p e dp r o du c t . Thec ul t u r eo fLy f t ,d e s p i t eb e i n gh a i l e db yt h ec o f o u n d e r sa si n s t r u me n t a li nd r i v i n g Ly f t ’ sp r o fit a bi l i t yb yt h ee n do f2 0 2 1, h a sn o ty e ty i e l d e dp o s i t i v er e s ul t sp r o mi s e db ye x e c u t i v e s ( Be l l o n ,2 0 2 0 ) . So mea n a l y s t sh a v enoc o n fid e n c ei nLy f te v e rt u r n i ngp r o fit a bl ei n2 0 2 1o r b e y on d( Hi l t z i k , 2 0 1 9 ) . Th e s el o s s e s , a sj u s t i fie db yt h ef o un d e r sa n dh o pe f u li n v e s t o r s ,a r ea n o r ma lp a r to ft h et r a n s f o r ma t i v ec y c l ea sLy f tf a c e si n t e n s i v ec o mpe t i t i onwh i l es i mu l t a n e o u s l y s p e n di n gmo s to fi t sr e v e n u e so nd e v e l opi n ga n dl a unc h i n gn e wo ffe r i ng s , f e a t u r e s ,a n de x p a n s i o n –y e t , t hei n c r e a s i n gr a t eo fl o s s e sa n dn or e a li nt i ma t i ono fap a t hwa yt op r ofit a b i l i t yma k eLy f t a nu n c e r t a i ni n v e s t me n tt oWa l lSt r e e t , a c c o r d i n gt oo t h e ra n a l y s t s( Eg a n , 20 1 9 ) . Fu r t h e r , d e s p i t e t r y i n gt op a c i f yLy f td r i v e r st h r o u g hv a r i o u sb e n e fit sl i k et a x ir e n t a l s , ma i n t e n a n c ea n dr e p a i r d i s c o u nt s ,a n df e e l e s sb a n ka c c o u n t s , d e t a i l so fdi s s a t i s f a c t i o na mo n gd r i v e r sh a vec o meo u t , d r i v e r swhoh a v eb e e np r o t e s t i n gt h el o wwa g e sa n dl a c ko fwo r kb e n e fit st y p i c a l l ye n j o y e db y f u l l t i mee mpl o y e e s , wh i c h , wh e nc o mb i n e dwi t ht h eLy f t ’ sp o t e n t i a lv e n t ur ei n t os e l f dr i v i n g t e c h no...