DOI: https://doi.org/10.62204/2336-498X-2025-1-3

A STUDY OF UBER’S CORPORATE TRANSFORMATION:

INNOVATION, ACCOUNTABILITY AND GROWTH

Yuliia Meish,

Doctor of Technical Science, Professor,

National University of Live and Environmental Sciences of Ukraine,

juliameish@gmail.com; ORCID: 000-0001-7492-700X

Viktoriia Lebid,

Candidate of Technical Sciences, Associate Professor,

National Transport University of Ukraine,

viktoriia.lebid@ntu.edu.ua; ORCID: 0000-0002-1260-3760

Mariia Meish,

Management student,

National University of Kyiv-Mohyla Academy,

mariia.meish@ukma.edu.ua; ORCID: 0009-0008-0950-8835

Annotation. This article focuses on the organizational transformation of Uber Technologies in the period during which the company underwent significant changes in leadership, corporate culture, and strategic direction.

The evolution of Uber Technologies from 2016 to 2022 represents a critical case study in corporate transformation within the dynamic and competitive mobility services sector. This period was marked by pivotal internal and external catalysts that necessitated profound organizational changes. Internally, a leadership transition triggered by crises involving corporate governance and workplace ethics redefined the company’s cultural paradigm. Externally, intensifying regulatory pressures, shifts in consumer expectations, and competitive forces reshaped Uber’s strategic and operational focus.

The forcefield analysis applies to evaluate driving and restraining forces in Uber’s transformation, highlighting the interplay between resistance to change and the strategies employed to mitigate it. Additionally, external disruptions like the COVID-19 pandemic necessitated adaptive measures to sustain operations while fostering a culture of safety, sustainability, and inclusivity. Key adaptations included the establishment of a reformed organizational culture prioritizing transparency, accountability, and inclusivity, alongside innovations in service diversification such as the introduction of shared mobility solutions and eco-friendly transport options.

This findings can be interesting to highlight the interplay between market dynamics and internal reform, highlighting how strategic leadership, stakeholder engagement, and adaptability can recalibrate an organization’s trajectory in the face of multifaceted challenges. The findings contribute to broader discussions on corporate resilience, ethical governance, and innovation-driven growth in global platform-based businesses.

Keywords: Uber Technologies, ride-hailing industry, workplace culture, innovation and diversification, forcefield analysis, corporate restructuring, transformational leadership, behavioral resistance, stakeholder engagement, strategic diversification, rebranding, labor dynamics.

Introduction. The American company was founded in 2009 in San Francisco as a startup under the name Uber Technologies, butswiftly became a prominent force within the taxi and delivery sector, establishing itself as a key player in the industry. The transformation of Uber from a traditional ride-hailing service to a multifaceted mobility company occurred over several years, with significant developments taking place from 2016 to 2022[1]. During this period Uber faced a myriad of challenges and opportunities.

The controversies around Uber`s policy have not only been a byproduct of its rapid expansion but also appeared from the controversial leadership of CEO Mr Kalanick. His tenure as CEO was marked by numerous manifestations of sexism within the organization and contentious disputes with company drivers regarding their working conditions [2]. These issues not only spottedUber’s reputation but also raised serious questions about its corporate governance and ethical standards. However, a significant turn of events in 2017 was a change in management when Mr Kalanick stepped down, making way for Dara Khosrowshahi as CEO. This leadership transition was a pivotal moment for Uber, ushering in a new era characterized by a change in corporate culture and a commitment to resolving internal conflicts. Under Dara Khosrowshahi’s leadership, Uber has embarked on a journey of organizational reform, prioritizing transparency, accountability and employee well-being to foster a healthier and more harmonic work environment.

As competition intensified and technology continued to evolve, the company recognised the need for strategic and cultural shifts to sustain its growth trajectory. This essay will critically analyze the transformative changes undertaken by Uber from 2016 to 2022, examining the drivers behind these changes, the implementation strategies employed, and the short-term and long-term outcomes evaluated. Drawing upon change management theories and literature, this analysis will delve into the triggers and nature of the changes initiated by Uber during the specified timeframe. It will explore the role of key stakeholders, the management of resistance to change, and the overarching objectives driving Uber’s transformation initiatives. Additionally, the essay will assess the effectiveness of Uber’s change management strategies in achieving its organizational goals and maintaining its position as a leader in the market.

Uber experienced a multitude of triggers which can be categorized into internal factors, originating from within the organization, and external factors, arising from the broader business environment.

Objective of the study. The rapid transformation of Uber Technologies from a ride-hailing startup to a global leader in the mobility sector highlights the need for a systematic understanding of corporate change mechanisms in the context of technological disruption, cultural shifts, and competitive market dynamics.A key focus is the impact of these transformations on Uber’s organizational culture, ethical governance, and operational strategies. The objective is to critically evaluate the interplay of internal and external factors driving these changes, with particular attention to the role of leadership in addressing corporate scandals, fostering innovation, and sustaining competitive advantage. It seeks to explore how ethical governance and accountability were integrated into organizational practices to rebuild stakeholder trust and align the company with broader societal expectations. Special attention is given to Uber’s efforts to foster inclusivity, transparency, and employee well-being within a previously contentious corporate environment.

The key goal is to evaluate the strategic diversification initiatives undertaken by Uber, such as the development of Uber Eats, Uber Freight, and its ventures into micromobility and sustainable transportation. By investigating Uber’s adaptive strategies, research provides insights into effective change management practices and their implications for global businesses in evolving environments.

The main part.

External triggers of change. According toFigure 1 PESTEL analysis, there are some economic, sociocultural and environmental factors, which can be considered crucial for external changes for the company.

 The movement Delete Uber became popular during 2016-2017 years, which caused a lot of social scandals and boycotts among customers not only in America but in other countries too. This movement caused losses of an estimated 200,000 users and helped Lyft rise in the App Store ratings[3]. Strong competition from rival ride-hailing companies, traditional taxi services, and emerging mobility providers exerted pressure on Uber to innovate, differentiate, and adapt its business model. Intense competition acted as an external trigger for change, compelling Uber to explore new markets, expand its services, improve customer experiences and provide new PR- campaigns. Compliance with evolving regulatory requirements and addressing legal challenges became imperative for Uber’s sustainability and growth. Uber`s invested in sustainable technologies, providing new services such as Uber Pool which allows the sharing of a private car between different customers. This strategy was developed to reduce the company’s emissions into the environment, as the issue of global warming began to emerge acutely, affecting the transition of consumer preferences to more eco-friendly transport.

Rapid changes in consumer preferences, behaviors, and expectations influenced Uber’s product offerings, service delivery, and business strategies. Consumer demands for convenience, affordability, sustainability, and safety increased, driving external changes within Uber, and prompting the company to innovate and evolve its offerings to meet market demands. As the demand for clean energy products increased in 2018, Uber bought a company which made electric bicycles and created a collaboration with Lime – a company which provides motorized scooters for clients.

Such events as the COVID-19 pandemic had profound impacts on Uber’s operations, revenue streams, and stakeholder perceptions. External shocks and socioeconomic trends acted as triggers for change, forcing Uber to adapt its business practices, priorities, and resource allocation strategies accordingly. During the COVID-19 pandemic, Uber lost 70% of its clients, so it was a huge problem for the company [4]. Uber implemented employment safeguards in response to the pandemic, which gives accountability for drivers’ working conditions and showcases its ability to enhance them. It showed that Uber has the potential to enact similar measures beyond crises as well and that future changes are needed.

Internal triggers of change. The appointment of Dara Khosrowshahi as Uber`s CEO in 2017  marked a pivotal internal trigger for change within Uber. Uber faced a crisis during the period from 2016 to 2017 ranging from allegations of workplace and sexual harassment and discrimination to regulatory challenges and legal disputes.   Khosrowshahi introduced an innovative set of cultural principles for the company, supplanting the earlier framework devised by Travis Kalanick. This updated set aims to foster a more inclusive and harmonious atmosphere within a corporate culture historically perceived as stringent and contentious. Internal feedback mechanisms, such as employee surveys, town hall meetings, and exit interviews, revealed widespread dissatisfaction among Uber employees regarding workplace culture, leadership, and the treatment of workers.  When Susan Fowler posted her story on social networks, the situation got out of control and the need for changes became necessary for the existence of the company on the market as one of the key players.

The new cultural values prioritized positivity and flexibility, embracing traits like perseverance and embracing diversity. Khosrowshahi initiated efforts to enhance employee relations and issued apologies to countless staff members following the previous CEO’s confrontational approach, which contributed to issues in London and the revocation of the company’s license due to perceived shortcomings in corporate responsibility [5].

In 2018, the company implemented a comprehensive marketing strategy which included rebranding efforts and the development of new visual elements such as logos, iconography, and typography for roadside signage and navigation imagery. This initiative also involved actively managing customer feedback while carefully considering previous unsuccessful experiences, particularly in 2016.

Driving forces. It is important to delve into the driving and restraining forces for Uber`s transformation in order to assess the need for changes in both Uber’s corporate culture and its market positioning strategies. To carry out successful analysis, forces were distributed according to Lewin`s model [6] and the framework of forcefield analysis was used to show the correlation.

As shown in Figure 2, the driving forces are represented by thicker arrows, indicating their significant influence. At the same time, in certain areas, the restraining forces have longer arrows, highlighting their significant impact. This visual representation highlights the complex dynamics within an organization, revealing the urgent need for change along with the many enabling conditions for its implementation. However, it also highlights notable problems that could slow down change, such as financial losses, driver dissatisfaction and public criticism.

 According to the Figure3 Uber experienced both soft and hard types of change during the period from 2016 to 2022. Soft changes primarily revolved around cultural shifts, leadership transitions, and internal organizational reforms aimed at improving workplace dynamics, fostering inclusivity, and enhancing employee satisfaction. On the other hand, hard changes encompassed strategic shifts, business model adaptations, and operational transformations aimed at diversifying service offerings, expanding into new markets, and addressing regulatory challenges. Therefore, it would be accurate to say that Uber experienced a combination of soft and hard changes during this period to adapt to evolving market dynamics, enhance organizational effectiveness, and ensure long-term sustainability.

Implementation of Change. According to R. Kanter`s works [7] it is important to figure out the role of the agent of change in Uber`s transformations. Kanter defines corporate entrepreneurs as individuals who exhibit entrepreneurial characteristics within the established structures of a large organization. 

 Table 2 shows Kotter’s model which offers a step-by-step approach to change management, providing clear guidance on the actions needed at each stage of the change process. This model can be used for an objective assessment of such complex changes as internal and external changes in the company. The model addresses various aspects of change, including creating a sense of urgency, building a guiding coalition, communicating the vision, empowering employees, and anchoring change in the organizational culture. While Kotter’s model provides a structured framework, it also allows for flexibility and adaptation to fit the unique needs and circumstances of different organizations.

Kotter’s model provides a granular framework with eight distinct steps, but it focuses mainly on leadership and communication whereas Lewin’s three-phase model [6] offers a broader overview with a focus on the psychological aspects which influenced the change.

Lewin’s three-phase model of change [6] can be used for analyzing the nature of change in Uber company. Lewin’s model allows a methodical examine the factors that contribute to the initiation of change, the strategies used to implement it, and the mechanisms for introducing change into the organizational culture by dividing the path of change into three distinct phases – unfreezing, movement and refreezing. This model helps to acknowledge the natural human tendency to resist change. Recognizing resistance allows strategies to be developed to resolve problems, provide support during transition, and build support for desired changes.

Unfreezing.The unfreezing phase in Lewin’s change model is the critical first step, where the stage is set for transformation. This phase looks like cracking the ice on a frozen lake, as it is compulsory to disrupt the current state before any movement can occur. This phase focuses on creating a sense of urgency for change. In Uber’s case, mounting legal challenges, the public backlash on sexual and workplace harassment, and regulatory pressure highlighted the need to move away from its aggressive tactics which the organization was famous for. The focus shifts to a clear understanding of why change is necessary for Uber. The negative impact of Kalanick’s successful practices was too strong and the potential benefits of change became a solution. In 2017 Dara Khosrowshwahi stepped into the CEO role at Uber, inheriting a company facing a multitude of crises. Khosrowshahi wasted no time in demonstrating his dissatisfaction with the status quo. He embarked on a global apology tour, acknowledging the company’s missteps and expressing a commitment to reform. Leaks of internal emails and reports highlighting safety issues became a catalyst for change. Khosrowshahi used these leaks to his advantage, publicly admitting to the company’s shortcomings and using them as evidence of the need for a comprehensive restructuration. Khosrowshahi actively sought out data and stakeholder input to solidify the case for change. He commissioned independent safety audits, met with regulators and driver representatives, and conducted employee surveys.  The results painted a clear picture: Uber’s aggressive tactics were unsustainable and detrimental to its long-term success. The new CEO began to articulate a vision for a “New Uber,” one focused on safety, regulatory compliance, and improved driver relations.  The potential benefits of this approach, such as increased ridership, a more stable business environment, and a positive public image were undeniable. The appointment of a new CEO became the start of a transformative era for Uber, signaling a strategic shift aimed at reducing substantial losses and reclaiming market dominance lost to its U.S. competitor Lyft. At the same time, such type of calm leadership transition also paved the way for embracing innovative ideas, including the exploration of cutting-edge technologies such as airborne transportation solutions [8]. This clear vision, coupled with the weight of the collected data and stakeholder concerns,  effectively created a sense of urgency within the company and paved the way for the moving stage of the transformation process.

Moving. The moving phase is a period of transitions where the actual transformation takes place [6]. It follows after the unfreezing phase, where the need for change is established, and precedes the refreezing phase, where the new behaviors and practices become solidified. The transitional phase, characterized by its dynamism and inherent challenges, serves as a pivotal period in organizational change. If organizations prioritize clear plans for putting changes into action, keep communication channels open, and make necessary adjustments along the way, it can boost chances of successfully navigating this period, reaching goals and implementing the changes.

The moving stage of Uber’s transformation under Khosrowshahi involved a series of concrete actions aimed at translating the urgency for change into notable results. Uber introduced stricter background checks for drivers, implemented new technology features like in-app emergency buttons and ride tracking, and invested in driver safety training programs, revamped its complaint-handling process, ensuring swift and transparent responses to user safety concerns.  Khosrowshahi adopted a more collaborative approach with regulators worldwide, focusing on establishing clear operating guidelines and addressing concerns about labor practices and insurance coverage. This shift in strategy which helped Uber navigate complex regulatory landscapes and avoid costly legal battles can be adopted from  Jason Colquitt’s research of organizationalbehavior[9]. Prioritizing improving driver relations, Uber re-evaluated its commission structure to offer drivers more competitive pay and incentives [10]  Additionally, Uber implemented features that provided drivers with greater flexibility in scheduling rides and reduced deadheading (driving without passengers). These changes aimed to create a more sustainable and rewarding work environment for drivers, a critical component of Uber’s core business model.

As Ian Palmer explains [11], affects a widespread transformation within a company, particularly in the case of a contentious organization like Uber, fatally facing internal resistance. With the change agent sourced externally and the previous one not removed from the board of directors, establishing a conducive environment and fostering confidence in the initiatives required considerable time and effort as shown in the Table 3. Internal resistance to change stemmed from individuals within Uber’s ranks who were comfortable with the company’s previous methods and reluctant to embrace new strategies. This resistance has manifested in various forms, such as skepticism, fear of the unknown, or concerns about a new leader.

Launched in 2014, Uber Eats gained significant traction during the moving phase. By leveraging its existing driver network and technological infrastructure, Uber offered a convenient food delivery service that competed with established players like Grubhub and DoorDash. This diversification not only provided additional revenue streams but also attracted new user segments, solidifying Uber’s position in the broader transportation and on-demand delivery space.

In 2018, Uber introduced two significant innovations: Uber Freight, a platform designed to facilitate connections between businesses and truck drivers for cargo transportation, and Uber Jump, a pilot initiative offering dockless electric bike rental services in select cities. These endeavors were strategically implemented to capitalize on emerging trends in the logistics industry and address the rising demand for micromobility solutions within urban environments.

The period of moving in Uber not only addressed pressing issues but also laid the groundwork for solidifying the “New Uber” within the company culture, paving the way for the refreezing stage.

Refreezing. Table 4 describesthe final stage of Lewin’s model, refreezing, which focuses on solidifying the changes and patterns implemented inside the organization. The goal is to ensure that new behaviors and practices become the new normal within the organization. In Uber’s case, this meant ensuring safety, regulatory compliance, improved driver relations and innovative ideas became ingrained in the company culture. Such features as multi-factor authentication, ride checkup and emergency button implemented during the moving phase, have likely become standard practices through the refreezing stage. By integrating it into the core Uber experience, Uber reinforce safety as a top priority.

Efforts have been made to reinforce the importance of working with regulators, maintaining transparent operating guidelines, and prioritizing driver relationships as integral components of Uber’s business model. The company has embraced a culture of innovation, which has led to the development of novel services like Uber Travel and the creation of a decision to make Uber Green for supporting eco-initiatives and sustainability.

Evaluation of the change. In Uber`s case, an external agent of change proved to be more effective than an internal one, as exemplified by Dara Khosrowshahi’s tenure as CEO of Uber. His outsider perspective brought fresh insights into Uber’s politics, fostering a culture of accountability and ethical business practices. Robert Iger in his work [12] presents a compelling narrative of leadership, innovation, and organizational transformation that correlates with Khosrowshahi`s leadership style after joining Uber. The response of Uber to its financial challenges in 2019 can be characterized by the implementation of cost-cutting measures and strategic partnerships which reflects a profound connection with the changes in organizational culture initiated under the leadership of the CEO. Khosrowshahi’s tenure witnessed a strategic reorientation towards fostering a culture of fiscal prudence, accountability, and adaptability within Uber. The adoption of cost-cutting measures signifies a departure from previous operational paradigms towards a more financially disciplined approach, emblematic of Khosrowshahi’s commitment to sustainable growth and profitability. Uber diversified its portfolio beyond ride-hailing to include services such as Uber Eats and Uber Freight, leveraging its existing infrastructure and technology to enter new markets.

Conclusions. In conclusion, Uber’s transformative journey from its aggressive past to a more tranquil and sustainable organizational culture has been driven by a combination of bottom-up and top-down changes orchestrated by a dynamic change agent Dara Khosrowshahi. By prioritizing transparency and safety for its workers, Uber has successfully implemented a new cultural paradigm that fosters innovation and collaboration. This shift not only reflects the company’s commitment to addressing past challenges but also underscores its adaptability and resilience in navigating complex business environments. Today Uber continues to develop new practices, which emphasise fostering a culture of trust, accountability, and inclusivity will be essential in sustaining its growth and relevance in the ever-changing landscape of the ride-sharing industry. Uber’s culture can be characterized by a dynamic blend of innovation, disruption, and customer-centricity, reflecting its commitment to driving positive change and delivering value to both customers and stakeholders. It means that Uber’s cultural paradigm aligns with the «Orange» organizational type, emphasizing clear targets for middle management and shared decision-making authority, potentially centralized. This approach fosters growth and a shift towards prediction and control. As Uber evolves, it may incorporate traits of «Green» organizations, dispersing decision-making authority to frontline employees and promoting a culture of servant leadership.

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