Case Study: Uber Success Brings Uber Public Relations Problems
Early in the 21st century, it was hard to deny the success of Uber, the upstart personal taxicab service. Uber is a staple in 300 cities in 58 countries, employs 300,000 drivers and generates annual revenues of $10 billion.
The concept has disrupted taxi companies and governments around the world. But despite its roaring success, the company has suffered public relations problems from its start, thanks largely to the words and actions of CEO Travis Kalanick. He has ` the company, enraged competitors, and antagonized the media with his edgy statements and take-no-prisoners attitude.
From Paris to Mexico City, taxi companies and unions have protested Uber, alleging that its use of unlicensed drivers was unsafe and illegal. In New York and other cities, governments proposed regulations that would rein in car-service apps. Meanwhile, safety issues increased as sexual assault allegations mounted against Uber drivers.
On top of these public relations challenges, an Uber executive in 2014 told reporters that he proposed spending $1 million to dig up damaging information that would discredit journalists critical of the company.
It is little wonder that in 2015, Kalanick, according to TechCrunch, had embarked on a public relations campaign to convey a “kinder, gentler Uber.”