Discover Uber's transformational leadership style under CEO Dara Khosrowshahi and how collaborative management drove the company's cultural transformation and profitability.
In the annals of corporate turnarounds, few stories rival Uber's metamorphosis under Chief Executive Dara Khosrowshahi. Since taking over as Uber's CEO in 2017, Dara Khosrowshahi has made a significant impact by steering the company through turbulent times while fostering a culture of innovation, collaboration, and long-term growth. The question "what leadership style does Uber use?" reveals a fascinating tale of organisational transformation that reads like a modern business parable—complete with the rise, fall, and redemption of a Silicon Valley titan.
Like Churchill taking the helm during Britain's darkest hour, Khosrowshahi inherited a company embroiled in scandal, regulatory battles, and cultural dysfunction. Taking the helm of Uber in 2017, he faced the formidable task of navigating the company through a tumultuous period marked by legal challenges, internal scandals, and fierce competition. Yet through a masterful application of transformational and collaborative leadership principles, he orchestrated one of the most remarkable corporate rehabilitations in recent memory.
This comprehensive analysis examines how Uber's leadership evolution—from Travis Kalanick's autocratic approach to Khosrowshahi's collaborative methodology—offers invaluable insights for business leaders navigating their own organisational challenges in an increasingly complex global marketplace.
To understand Uber's current leadership style, one must first examine the stark contrast with its previous approach. Travis Kalanick's leadership style is best described as Autocratic Leadership. This style is characterized by centralized decision-making without team input. Under Kalanick's reign, Uber embodied the Silicon Valley archetype of "move fast and break things"—a philosophy that prioritised aggressive expansion over ethical considerations.
Kalanick maintained tight control over Uber's operations and strategic direction, often making decisions that prioritized aggressive growth and competitive tactics over collaborative input or consideration of the company's internal culture. This centralised approach, whilst effective in Uber's early scaling phase, created significant structural problems that would eventually threaten the company's very survival.
The autocratic leadership style manifested in several problematic ways:
Uber faced substantial challenges due to its aggressive leadership style and toxic organizational culture, leading to numerous scandals and a subsequent decline in growth. The company's reputation suffered severely, with high-profile incidents including the #DeleteUber campaign, allegations of sexual harassment, and contentious battles with regulators worldwide.
The autocratic approach, whilst initially fueling rapid growth, ultimately proved unsustainable. Like the mythical Icarus flying too close to the sun, Uber's aggressive trajectory led to an inevitable fall that required nothing short of complete cultural transformation.
When Dara Khosrowshahi assumed leadership in August 2017, he brought with him a fundamentally different approach to organisational management. Khosrowshahi's leadership style, characterized by transparency, inclusivity, and a commitment to ethical business practices, has been instrumental in reshaping Uber's corporate culture and steering it toward sustainable growth.
His leadership approach is marked by a calm, diplomatic style, a stark contrast to his predecessor, Travis Kalanick, who was known for a more aggressive leadership style. Khosrowshahi's methodology represents a masterclass in transformational leadership—the art of inspiring positive change through vision, inspiration, and individual consideration.
The new leadership framework encompasses several key principles:
Decentralised Decision-Making: His approach includes decentralizing decision-making, allowing different units within Uber to operate independently and swiftly. This shift empowered regional managers and functional leaders to make decisions appropriate to their local contexts.
Employee Empowerment: Khosrowshahi believes in building a culture where employees are trusted to take ownership of their work. This trust-based approach represents a seismic shift from the previous micromanagement culture.
Transparency and Communication: Khosrowshahi is known for his commitment to ethical leadership and transparency. Regular all-hands meetings, open communication channels, and honest acknowledgment of past mistakes became hallmarks of the new regime.
The COVID-19 pandemic provided the ultimate test of Khosrowshahi's leadership philosophy. During the COVID-19 pandemic, he swiftly pivoted Uber's business model, expanding and introducing new services which proved crucial for the company's survival. Rather than imposing unilateral decisions, Khosrowshahi worked collaboratively with his leadership team to navigate unprecedented challenges.
This crisis management approach demonstrated several transformational leadership characteristics:
Transforming Uber's organisational culture required a systematic approach that addressed both structural and behavioural elements. Since joining the ride-hailing giant in August, observers say, he has been just as bold as he has been businesslike, imposing sweeping changes that would be considered dramatic in any corporate environment.
Uber's values placed at the core of its new corporate culture by Dara Khosrowshahi include the following points: We build globally, we live locally. We are customer-obsessed. We celebrate differences. We do the right thing. We act like owners. We persevere. We value ideas over hierarchy. We make big bold bets.
These values represent more than corporate rhetoric; they constitute a fundamental reimagining of how Uber operates. The phrase "we value ideas over hierarchy" particularly exemplifies the shift from autocratic to collaborative leadership.
The cultural transformation followed a three-pronged approach:
Immediate Policy Changes: Zero-tolerance policies for harassment and discrimination were implemented immediately, sending a clear signal about acceptable behaviour.
Structural Modifications: Uber's organizational structure can be classified as hierarchical. Accordingly, the company is disadvantaged by the shortcomings of hierarchical structure such as ineffective communication across various departments, the rivalry between departments that may compromise long-term growth prospects and a high level of bureaucracy. Khosrowshahi worked to flatten hierarchies and improve cross-departmental collaboration.
Leadership Development: Investment in management training programmes ensured that collaborative leadership principles cascaded throughout the organisation.
The transformation from autocratic to collaborative leadership has yielded measurable business results that validate Khosrowshahi's approach. "Uber ended 2024 with our strongest quarter ever, as growth accelerated across MAPCs, trips, and Gross Bookings," said Dara Khosrowshahi, CEO.
The numbers speak volumes about the effectiveness of collaborative leadership:
His focus has been on diversifying Uber's offerings beyond ride-sharing to include food delivery, logistics, and autonomous vehicle and AI technology. This diversification strategy, developed through collaborative input from various business units, has positioned Uber as a comprehensive mobility platform rather than merely a ride-hailing service.
The collaborative approach has dramatically improved Uber's relationships with key stakeholders:
Regulatory Bodies: One of Khosrowshahi's critical challenges was navigating regulatory landscapes worldwide. Through diplomatic engagement and collaborative problem-solving, Uber has resolved many of its regulatory conflicts.
Drivers and Partners: Enhanced communication and benefit programmes have improved relationships with the driver community that forms Uber's operational backbone.
Investors: The achievement of profitability and sustainable growth has restored investor confidence in Uber's long-term prospects.
Uber's journey from autocratic dysfunction to collaborative success offers several crucial insights for contemporary business leaders:
"One of the early lessons that I learned in leadership is that it's the leaders job to always go against the flow. And I think sometimes leaders get this wrong which is when things are bad and you know one of your teams is having a tough time. They know they're having a tough time. They don't need you to go out there and say, 'you know your results are crap what the hell are you going to do about it?' They actually need you to lift them up."
This wisdom from Khosrowshahi illustrates the empathetic dimension of transformational leadership—understanding when to provide support rather than criticism.
Today Uber should try to act, behave, and set an example like a leader – redefining itself as an institution we can trust, honor and respect. The transformation taught that sustainable innovation requires balancing aggressive growth with social responsibility.
The Uber case demonstrates that organisational culture isn't merely a "soft" concern but a critical business asset. Companies with collaborative, inclusive cultures are better positioned to attract talent, navigate crises, and adapt to changing market conditions.
Understanding what leadership style Uber uses requires examining the specific mechanisms through which collaborative leadership operates within the organisation.
Modern Uber employs a consensus-building approach that contrasts sharply with its autocratic past. Leadership decisions involve extensive consultation with relevant stakeholders, data-driven analysis, and consideration of long-term implications.
Uber's Collaborative Leadership offers several lessons for executives seeking to develop high-performing teams: Foster Open Communication: Transparency builds trust, and open dialogue helps employees feel valued and motivated.
Regular town halls, cross-functional working groups, and open-door policies ensure that information flows freely throughout the organisation. This transparency has helped rebuild trust both internally and externally.
The collaborative approach extends to how Uber evaluates and develops its people. Rather than top-down performance reviews, the company now emphasises 360-degree feedback, peer collaboration metrics, and individual development planning.
Uber's transformation offers insights relevant far beyond the technology sector. In an era of increasing stakeholder capitalism and social responsibility expectations, the shift from autocratic to collaborative leadership represents a broader trend in executive management.
Traditional command-and-control leadership models are increasingly obsolete in knowledge-based economies. Khosrowshahi places a high value on empathy and inclusivity. He believes that understanding and addressing the needs of employees, customers, and stakeholders is essential for long-term success.
In our interconnected global economy, crises spread faster and have greater impact than ever before. Collaborative leadership provides the agility and stakeholder buy-in necessary to navigate complex challenges effectively.
Under Khosrowshahi, Uber has shifted from a "growth at all costs" mentality to one that emphasizes sustainable, long-term growth. This shift reflects broader recognition that sustainable business practices require collaborative approaches that consider multiple stakeholder perspectives.
Whilst Uber's transformation has been largely successful, it's important to acknowledge the challenges inherent in collaborative leadership approaches.
Collaborative decision-making can be slower than autocratic approaches, potentially creating competitive disadvantages in fast-moving markets. Uber has had to develop mechanisms for rapid decision-making when necessary whilst maintaining collaborative principles.
As organisations become more inclusive and diverse, managing competing viewpoints becomes increasingly complex. Effective collaborative leadership requires sophisticated conflict resolution and consensus-building skills.
When decision-making is distributed, ensuring accountability can be challenging. Uber has had to develop clear frameworks for responsibility allocation within its collaborative structure.
As Uber continues to evolve, its leadership style will undoubtedly adapt to new challenges and opportunities. Several trends are likely to shape the company's future approach:
Artificial intelligence and advanced analytics are enabling more sophisticated collaborative decision-making processes. Uber is likely to leverage these technologies to enhance its collaborative leadership capabilities.
The trend toward stakeholder capitalism suggests that collaborative leadership will increasingly need to incorporate perspectives from customers, communities, and society at large—not just employees and shareholders.
As Uber's global footprint expands, coordinating collaborative leadership across diverse cultural contexts will become increasingly important.
What specific leadership style does Uber currently use? Uber's Collaborative Leadership, which empowers employees with responsibility and freedom, is key to the company's current approach. This represents a blend of transformational and democratic leadership styles under CEO Dara Khosrowshahi.
How did Uber's leadership style change after Travis Kalanick? The company shifted from an autocratic, top-down approach under Kalanick to a collaborative, transparent methodology under Khosrowshahi. This transformation involved decentralising decision-making, implementing ethical policies, and fostering inclusive communication.
What are the key benefits of Uber's collaborative leadership approach? The collaborative approach has delivered improved financial performance, better stakeholder relationships, enhanced innovation, and a more sustainable business model. Record demand in both Mobility and Delivery helped us grow Gross Bookings faster than the high end of our guidance demonstrates the tangible business impact.
How does Uber's leadership style compare to other tech companies? Uber's transformation represents one of the most dramatic leadership evolution stories in Silicon Valley. Unlike companies that maintained consistent leadership styles, Uber's journey from autocracy to collaboration offers unique insights into organisational change management.
What challenges does collaborative leadership present for fast-growing companies? Collaborative approaches can slow decision-making and create complexity in accountability structures. However, Uber has developed frameworks to maintain agility whilst preserving collaborative principles through structured consultation processes and clear escalation procedures.
Can Uber's leadership transformation be replicated in other industries? The principles of transformational and collaborative leadership are applicable across sectors, though implementation details vary by industry context. The key lessons about transparency, stakeholder engagement, and cultural change are universally relevant.
What role did company culture play in Uber's leadership transformation? Culture was central to the transformation. Change the executives of Uber's hierarchical culture started by Dara Mr Khosrowshahi can be clarified by applying Lewin's Model of Culture, demonstrating how systematic cultural change enabled sustainable leadership evolution.
The question "what leadership style does Uber use?" reveals a company that has undergone one of the most significant leadership transformations in modern business history. From the autocratic approach that nearly destroyed the company to the collaborative methodology that delivered sustainable profitability, Uber's journey offers invaluable lessons for leaders across all sectors.
Like the mythical phoenix rising from ashes, Uber's transformation under Khosrowshahi's collaborative leadership demonstrates that even the most troubled organisations can achieve remarkable turnarounds through authentic, empathetic, and inclusive leadership approaches. As businesses worldwide grapple with increasing complexity, stakeholder expectations, and social responsibility demands, Uber's collaborative leadership model provides a compelling blueprint for sustainable success in the 21st century.