Uber CEO Dara Khosrowshahi went undercover as driver and delivery agent for months; Here's what he learnt

Uber CEO Dara Khosrowshahi made headlines recently when he revealed that he spent several months working undercover as an Uber driver and delivery agent in San Francisco to better understand and address the problems faced by gig workers. During this period, the CEO experienced the same challenges that drivers face, such as being punished by the app for rejecting rides and dealing with tip-baiting customers, he told the Wall Street Journal.

Khosrowshahi's undercover stint was motivated in part by the labour shortage that Uber was experiencing in the wake of the pandemic. The ride-hailing service had more riders than drivers, leading to longer wait times and surging prices. Khosrowshahi was also under pressure from investors to increase profits, leading him to set aside $250 million as bonuses to attract more drivers.

However, Khosrowshahi soon realized that money alone was not enough to attract and retain drivers. He identified several issues with Uber's product design and policies that made it difficult for drivers to work for the company. For example, the sign-up process for gig workers who wanted to drive or deliver food was clunky and confusing. Khosrowshahi addressed this by creating a single sign-up process that allows drivers to toggle between food delivery and passenger transport, he told WSJ.

Another major issue was the fact that drivers were not shown the rider's drop location and estimated pay before accepting a trip. Only a select few drivers with high acceptance rates were given this information ahead of time. Khosrowshahi experienced this frustration firsthand and asked his team to speed up the timetable for all US drivers to see destinations upfront without any restrictions.

As a delivery driver, Khosrowshahi also experienced tip baiting, where customers promise a higher tip but pay a lower one after their order is delivered. Uber tried to address this issue by not allowing customers to change the tip amount after delivery, but many customers simply stopped tipping altogether.

As per The Wall Street Journal, Uber's campaign known as Project Boomerang played a significant role in the company's major transformation since its establishment in 2009, including better communication with drivers and a fairer tipping policy.

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