Uber struggling to maintain success in US market

Ride-sharing brand, Uber, appears resigned to continue to lose money in its home market, the United States. The losses have less to do with the string of PR crises that have plagued the company over the past few years, and more to do with stiff completion from a major rival, Lyft. However, some of the public have lost confidence in the company due to a string of accidents. Fortunately, Quirk Reed Personal Injury Attorneys have been hard at work trying to secure satisfactory compensation for their clients.

Uber CEO Dara Khosrowshahi, as reported by Reuters, said: “The US is very, very competitive right now between us and Lyft, so I don’t see the US as being a particularly profitable market for the next six months…”

Following up on that surprise bluntness, a company spokesman said Uber expects to “break-even” in some cities, but remain unprofitable overall. This “overall” lack of profitability is being driven by poor showings both at home and in emerging Asian markets, where Uber continues to struggle. Add to that ongoing legal and operational disputes with certain key cities, like London, and it presents multiple problems for Uber.

Uber fans and investors hope Khosrowshahi is up to the task of navigating Uber through the rough waters initially created by the former CEO, Travis Kalanick, who aggravated both customers and employees with what some described as his “abrasive” attitude and leadership.

While Uber is built on a model that allows for massive losses while establishing a business in a new market, people are unsure how well the company can maintain those losses in markets where they should be well-established. The concern is, why isn’t Uber still gaining ground in the United States?

Through its trailblazing clashes with local, state and federal regulators, Uber’s brand recognition soared. It was the classic American can-do story, a scrappy company Fighting the Man in order to deliver something its customers wanted. But that mythos proved untenable. After multiple negative headlines and lengthy battles, Uber was left financially strapped and dealing with market fatigue. Customers were less inclined to automatically prefer their brand over the competition.

That left a window open for Lyft, which had often been content to let Uber fight the legal battles, which remains a solid number two in the ride-share market. Now, though, sensing an opening, Lyft pushed hard, gaining ground as Uber’s leadership transitioned and the company slogged through one PR disaster after another.

Now, the playing field is growing more level. If Uber wants to get its operations in the States back on a profit-making basis, the company has to make some shifts in how it attracts and retains customers. The sooner, the better. There are some people who feel that we need to hold Uber accountable for the way their drivers act when they have customers in their cars, as there have been reports of rudeness and not completing the already paid for ride.

Ronn Torossian is the Founder and CEO of the New York-based public relations firm 5WPR: one of the 20 largest PR Firms in the United States

ronn_torossian Uber struggling to maintain success in US market

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Ronn Torossian is the founder and CEO of 5W Public Relations, one of the largest independently-owned PR firms in the United States. With over 20 years of experience crafting and executing powerful narratives, Torossian is one of America's most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company's growth, overseeing more than 175 professionals in the company's headquarters in midtown Manhattan. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named "PR Agency of the Year" by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world's most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine's Most Influential New Yorker, and a 2020 Top Crisis Communications Professional by Business Insider. Torossian is known as one of the country's foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, was named to PR Week's "40 under Forty" list, is a contributing columnist for Forbes and the New York Observer, and his book, "For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations" is an industry best-seller. A NYC native, Torossian lives in Manhattan with his children. He is a member of Young Presidents Organization (YPO), and active in numerous charities.