Empathy: The Secret To Uber's Success
John speaking to ecomaids franchisees at their annual conference in Austin, Texas, 2024.
Empathetic Leadership Tip of the Week
Your frontline workers often have deeper insights into specific aspects of the business than you do. Actively seek out their input, listen to their perspectives, and try to experience what they experience. Including their voices in decision-making fosters trust and improves outcomes.
Empathetic Leadership in Action
When CEOs join their employees in the trenches, it can translate to considerable gains in productivity, but Uber CEO Dara Khosrowshahi took that concept to a whole new level when he literally took the wheel and became one of his company’s drivers for several months. What started as an experiment during the pandemic to better understand drivers' experiences evolved into a transformative learning experience for Khosrowshahi. His stint as a driver forced him to "reexamine every single assumption that we've made," fundamentally changing the way Uber operates.
Khosrowshahi's experience as a driver, dubbed "Project Boomerang," allowed him to confront the frustrations many drivers face daily. Using a secondhand Tesla, he drove passengers around the city with a curated Spotify playlist, but the experience wasn’t just about the ride. He faced common challenges like rider harassment, anxiety over maintaining a high rating, and a frustrating driver sign-up process. Khosrowshahi admitted that the system felt "clunky" and recognized that Uber had historically prioritized the rider experience at the expense of the drivers. "The industry as a whole, to some extent, has taken drivers for granted," he said, adding that the pandemic forced Uber to rethink how it could better serve its drivers.
The insights Khosrowshahi gained as an Uber driver spurred real changes in strategy. He realized that while Uber’s business had been built around offering a seamless experience for riders, it had overlooked the importance of creating a similarly positive experience for drivers. This led to an overhaul in the company’s approach to driver support and recruitment, especially as Uber faced driver shortages and increasing fuel prices. Khosrowshahi's hands-on experience highlighted the need to reduce friction in the driver experience, from sign-up to compensation, and Uber began making significant adjustments, such as streamlining the sign-up process and adjusting pay rates to offset inflation.
The impact of his time as a driver extended beyond operational improvements. It sparked a cultural shift within Uber, refocusing the company on its relationship with drivers. As Khosrowshahi navigated the complexities of being an Uber driver—dealing with traffic, difficult riders, and pay challenges—he gained a new empathy for the workforce that powers Uber. This hands-on approach has helped restore confidence in Uber's leadership and contributed to the company’s improved earnings as the pandemic waned and demand for rides rebounded. While challenges remain, particularly around pay and fuel costs, Khosrowshahi’s willingness to drive alongside his employees set the tone for a more driver-focused era at Uber.
This Week in History
On September 9, 1776, the Second Continental Congress officially adopted the name "United States of America," replacing the previous term, "United Colonies." This change marked a significant step in the colonies' journey toward nationhood, symbolizing their unity and independence from British rule. The name had been first used by Thomas Jefferson in his draft of the Declaration of Independence, which declared the colonies' intent to form a new, sovereign nation. Richard Henry Lee had also referenced the "United Colonies" in a resolution earlier that year, but the shift to "United States" solidified the colonies' collective identity. The Congress' resolution on September 9 ensured that all official documents, including military commissions, would reflect this new title, cementing the concept of a unified nation.