Business

The CEO of Uber went undercover as a boss in a used Tesla and was shocked by some of the rudeness of certain riders.

Dara Khosrowshahi, the CEO of Uber, went undercover as an Uber driver in September 2022 to gain firsthand experience and insight into the Uber-employee experience. The company had traditionally focused on improving the rider experience, but Khosrowshahi believed that improving the driver experience was crucial to maintaining the company’s lead over rivals such as Lyft.

Khosrowshahi bought a secondhand Tesla Model Y and used the alias “Dave K.” while driving customers around San Francisco and making deliveries. He encountered several operational issues that made using the app difficult, such as technical glitches, issues with GPS navigation, and outdated information on pick-up and drop-off locations. However, he was also surprised by the unpleasant behavior of some customers, such as discussing personal problems or confidential corporate information as if they were the only ones in the car.

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One issue that Khosrowshahi encountered while making food deliveries using an electric bike was “tip-baiting.” This is a practice where customers entice a courier with a big tip when they place the order, but reduce it after delivery.

Despite these challenges, Khosrowshahi maintained a five-star rating for the roughly 100 rides and deliveries he completed. However, he admitted that he often went to bed anxious about maintaining his perfect rating the next day.

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Khosrowshahi’s undercover mission was part of a larger initiative called “Project Boomerang,” which aimed to get more drivers back on the Uber app. The findings from his experience prompted Uber to make several changes to improve the driver experience, such as creating a single sign-up for both rides and deliveries, allowing drivers to see drop-off locations before pick-up, and giving drivers hundreds of millions of dollars in bonuses.

In recent interviews with Insider, five Uber drivers reported frequently encountering rudeness, no tips, late arrivals, and requests for stops at drive-thrus or convenience stores. Khosrowshahi’s experience highlights the importance of improving the driver experience to retain and attract drivers, which is crucial to the success of the ride-sharing industry.

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