Question
Uber's City Launcher strategy is often seen as a symbol of the gig economy, where workers are classified as independent contractors rather than employees. This strategy allowed Uber to rapidly expand into new markets by incentivizing drivers with bonuses for completing a certain number of rides. However, this approach has been criticized for potentially exploiting workers, as they don't receive the same benefits and protections as traditional employees. This has led to debates about worker rights in the gig economy, with some arguing for better protections and benefits for gig workers.
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Uber needed to replicate its success outside San Francisco. Austin Geidt, a 24-year-old intern, became Uber's first City Launcher. A City Launcher would parachute into markets, set up offices and launch the Uber service. To kickstart demand, Uber would offer incentives to drivers for hundreds of dollars in bonuses for completing a minimum number of rides. This strategy was expensive, but it turbocharged business. Uber replicated this across cities like Paris, Los Angeles and Melbourne. Every time Uber entered a city, the company would hire a local City Manager- a person with local knowledge, ambition, a capacity to work 15-hour days and a willingness to evade the law. The City Manager would flood craigslist with ads for drivers, lure them in with sign-up bonuses and thousands of dollars in cash when they hit milestones. City Managers would have to confront established interests, including legislators, police officers and local transportation unions.
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