Wall Street is where private businesses face the ultimate litmus test. It is where all the lofty valuations go out the window, and analysts and investors alike go through the business inner details with a fine-toothed comb. It was revealed to a great deal when much-awaited IPOs of Uber and Lyft more or less fell flat on their faces, and the vigor of it was underscored with quite prominence with the whole ongoing WeWork debacle. So much so that the CEO of WeWork, Adam Neumann, had to step down, and Uber and Lyft have been trailing almost 40% behind their opening marks.
This pressure is getting to these businesses — businesses that were once witnessing lofty valuations and had private investors drooling all over them.
New leadership had been put in place at Uber with the hopes of turning a new leaf, but the problems with the business have continued to mount up, and there is no clear point of profitability in sight. And in, what looks like, an effort to get out of this pickle, Uber has decided to aim becoming an app for your life, or as the company called it — the operating system for your everyday life. And this is where I think the mistake is being made.
WHAT IS THE LATEST FROM UBER
The company has just come up with a new app — Uber Works — to provide an alternative to the staffing agencies temp workers use to find temp gigs and shifts. To begin with the company will be working with staffing agencies. Now, it could end up becoming a marketplace for staffing agencies, or it follow a hybrid model where it is catering to some staffing agencies while serving to some other businesses directly — which is what I think the business may be thinking of doing.