Can Uber Be Saved From Itself?

“From Uber’s perspective, it has mounting losses, has had a dearth of recent fundraising, and is facing serious allegations of an internal culture gone astray,” says Raj Rajkumar, a professor of engineering at Carnegie Mellon University, who collaborates with General Motors. “And now a lawsuit from a company with a lot of credibility and much bigger pockets.”

Rajkumar adds, “The core problems with the current business model of subsidizing drivers and riders… [will] catch up with them. The debate about their aggressive culture — where apparently there is strict emphasis on performance and deadlines, and very little on mutual respect, integrity and diversity — will further intensify. At the end of the day, the big question would become whether the board and the investors take any action.”