The Service Operations Management Problem

Running Head: SERVICE OPERATIONS MANAGEMENT 1
Service Operations Management
(Name)
(Institutional Affiliation)

SERVICE OPERATIONS MANAGEMENT 2
Table of Contents
Service Operations Management...............................................................................................3
Uber’s Management Problem....................................................................................................3
Chief Executive Sued For Fraud................................................................................................3
Questionable Management Style................................................................................................4
Implications of the problem on customer expectations and organisational performance..........4
Implications of the problem on shareholder performance.........................................................5
How to Avoid Such Issues in Your Company...........................................................................5
References..................................................................................................................................7

SERVICE OPERATIONS MANAGEMENT 3
Uber’s Management Problem
Uber is an American private technology company that develops markets and operates
the Uber car transportation and food delivery mobile apps in 633 cities globally. Drivers for
Uber can use their own cars or rent cars to drive with Uber. The company has been a
forerunner in the sharing economy and has been a subject of several disputes and legal
actions. One of these includes the suing of its chief executive, Travis Kalanick, of fraud and
other transgressions.
Chief Executive Sued For Fraud.
Travis Kalanick is the one responsible for conversion of Uber into a transportation
colossal company and due to his actions; the investors expelled him as the CEO of the
company, (Stone, 2017). One of Uber’s largest investors, Benchmark, which is a Silicon
Valley venture capital firm, filed a suit against Kalanick and accused him of fraud, breach of
fiduciary and duty and a breach of contract. Benchmark, after supporting the Uber
management for a very long time turned against the company’s top ranks leaving the
members of the board of directors in turmoil. (Slee, 2015). This is because they remained
undecided on what to do and how to face the problem that the firm was causing. Benchmark
owns a 13% stake in the company and a board seat but the influence of Benchmark on the
board was eventually diminished, restricting the firm from accessing any information about
the company’s legal actions after the firm’s board representative exonerated himself from the
board committee, which deliberated litigation issues. The firm insisted that Kalanick should
be removed from the board of directors and it went ahead to publish an open letter to
employees of Uber insinuating that the company held some dark secrets from them.
(Damodaran, 2017).