Dara Khosrowshahi, CEO of Uber Technologies.Photographer: Michael … [+]
Uber is one of the most innovative companies of the past 50 years. It continues to change transportation modes and expand to other regions.
Travis Kalanick originally launched Uber as a limousine rental service. However, he recognized that there was a more significant opportunity for the vast number of people who wanted to own quality cars and provide convenient and affordable transportation. This insight led to a pivot to the peer-to-peer transportation model that made Uber a dominant company. Through his global expansion, Kalanick has transformed transportation for countless individuals around the world.
But when Uber needed to become an expert-led organization, Kalanick appeared to reach the limits of his leadership, and Dara Khosrowshahi succeeded him, successfully cementing Uber’s role in transportation. did.
Here are five lessons for entrepreneurs from Kalanick and Khosrowshahi’s leadership.
#1. Embrace new trends.
Capitalizing on new trends is the most common strategy of unicorn entrepreneurs. From Sam Walton and Dick Schultz to Mark Zuckerberg and Gaston Taratuta, unicorn entrepreneurs have built unicorns based on emerging trends. Building on his skills and accomplishments as co-founder of Red Swoosh. Kalanick was able to find a need that was met by the new technology of a powerful cell phone and his GPS.
#2. Pivot to unicorn opportunities.
In true unicorn entrepreneur fashion, Kalanick listened to market feedback and pivoted from the limousine rental market to the global peer-to-peer transportation market. This key axis helped propel Uber to unicorn status.
#3. Connect smart business and smart finance to finance growth with control.
Excessive venture capital funding can pose significant risks to entrepreneurs, with research showing that as many as 85% of entrepreneurs were replaced if they raised more rounds of venture capital funding. It has been shown that Kalanick was able to fund Uber’s launch with his own money from a previous venture with Mark Cuban, but he was able to get funding from venture capital firms in the growth stage to build on his invention. Maintained superiority in the field. So he was financially smart by raising money to stay on as CEO and then letting a VC take the reins. However, VCs have clauses in their contracts regarding the right to change leaders. And when Mr. Kalanick’s failures gave them the incentive and opportunity to change leadership, they did.
#4. Adapt your leadership to the venture stage – the transition from entrepreneur to CEO.
Strategy Before Aha, a venture requires an adventurous entrepreneur who can find a competitive edge in an emerging industry. Kalanick did this by influencing regulatory changes regarding the right to drive passengers without a taxi license. But once entrepreneurs grow, they need leadership skills to turn their growing venture into a company. When Mr. Khosrowshahi replaced Mr. Kalanick, Uber gained a professional management team and was able to grow into a Fortune 500 company. 94% of billion dollar entrepreneurs have successfully made this pivot.
#5. Prioritize profitable growth.
Under Khosrowshahi’s leadership, Uber was able to meet the needs of the market and investors for growth through cash flow and stock buybacks. This improved the company’s financial position and stock price, and solidified Uber’s position as a dominant company.
My take: Entrepreneurs need two main categories of skills. The first is to acquire unicorn startup skills to launch a unicorn. The second is to master unicorn growth skills to move from founder to CEO and build a unicorn. Entrepreneurs need a blend of strategic vision, operational excellence, a relentless pursuit of growth, and great leadership. Learning these skills is key to transitioning from founder to CEO and staying relevant as your company grows.
