Seven admissions that raise eyebrows as a result of the IPO of Uber

So, Uber is finally made public.

The ride-hail company is perhaps best known for its summary business practices and its culture of badual harbadment, which released April 11 a long flyer outlining its plan for get this money. This document, required by the Securities and Exchange Commission and written for potential investors, is a summary of the hopes, dreams and fears of the company.

That's quite the reading. However, at 285 pages (not including the index), you have better things to do than trying to badyze this beast of a document. Fortunately, we did a little bit of that for you.

So here, in no particular order, are 7 of the largest admissions that we found in the document.

1. Uber can never be profitable

We have suffered significant losses since its inception, particularly in the United States and in other major markets. We expect our operating expenses to increase significantly in the foreseeable future and we may not achieve profitability.

In case you're wondering, even Uber admits that it might never be profitable. A sin never. The company informs potential investors that it has "suffered significant losses since its inception" and that as of December 31, 2018, it had an accumulated deficit of $ 7.9 billion.

2. Everything is done if the Uber drivers are clbadified as employees

Our business would suffer if drivers were clbadified as employees rather than independent contractors.

A key element of Uber's success lies in its ability to treat its drivers as independent contractors and not as employees. If that were not the case anymore, Uber warns, it would be necessary to "fundamentally change" his business model and eventually pay "social benefits, social security contributions, taxes and penalties".

Oh no, horror.

3. Dara Khosrowshahi might not be able to repair the terrible reputation of Uber

Our corporate culture and forward-thinking approach has created operational, cultural and compliance challenges. If we fail to do so, our business, financial condition, results of operations and prospects will be adversely affected.

CEO Dara Khosrowshahi was hired after the premature departure of Uber co-founder and then CEO Travis Kalanick following a series of seemingly endless scandals. Khosrowshahi even alluded to this fact in a letter at the top of the prospectus, noting that "by going from point A to point B, we had not settled everything properly".

The company is aware that Khosrowshahi can only do a lot, and warns potential investors that "the changes in the cultural norms of our society and the composition of our management team […] may not succeed "in straightening the ship of negative perception, who could have guessed.

4. So, uh, Ubers self-driving might just be an unprofitable distraction

We are investing heavily in new offerings and technologies and plan to increase these investments in the future. These new businesses carry inherent risks and we may never realize the expected benefits.

Uber has invested tons of money in the development of autonomous cars, and the company admits that everything might not be unprofitable, but be a source of distraction.

In a section devoted to new technologies such as autonomous vehicles and e-bikes, Uber explains that it could simply "distract management from current operations and divert capital and other resources. of our products, offers and technologies better established ".

5. Uber knows that his brand stinks

Challenges related to our workplace culture and practices, as well as the negative publicity we have experienced, have in the past resulted in a significant attrition rate and made it more difficult to attract people. high quality employees.

It turns out that even Uber employees got fed up with the bullshit of the company. The leaflet acknowledges that in the past, "cultural and professional practices" made it difficult to recruit new talent and encouraged people to go out. Specifically, "in the third quarter of 2018, the annualized attrition rate of employees was close to the highest levels."

This persistent stick, Uber notes, could be a problem for the future.

6. Uber can not guarantee that his Jump e-bikes are not defective

In addition, it is difficult to maintain and operate bikes and electric scooters without a dock, and improper maintenance could result in serious injury or death to the driver.

The dockless Jump electric bikes, owned by Uber, are by definition scattered in the cities where they operate. And, sometimes, the big red motorcycles break down or are vandalized. Uber admits that even when it is he who repairs the errors, it is almost impossible to guarantee that the rides are repaired properly.

So maybe wear a helmet?

7. Background checks for Uber Eats pilots are more lax

In addition, Uber Eats drivers' qualification and background check standards are generally less stringent than those for Riders.

Do you know who delivers your Uber Eats? Presumably, Uber proceeds as the company checks the background of its drivers. However, the checks performed on Uber Eats drivers are not as extensive as those performed on its drivers.

So, be sure to leave a tip and, uh, consider putting your neighbor's address as a deposit location.