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Why did Uber CEO really leave Trump’s advisory board? Why did Elon stay?

(BUSINESS NEWS) As the hashtag #DeleteUber spreads like wildfire through the internet, CEO Travis Kalanick makes a bold decision. But is it rooted in anything more than appealing to consumers?

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Feeling the pressure

Trump’s team is already falling apart. Uber founder and CEO Travis Kalanick has resigned from the President’s Strategic and Policy Forum, following a flurry of public outrage over the recent executive order on immigration.

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In response to the ensuing chaos at international airports, the rideshare app suspended surge pricing to and from New York’s JFK airport, but the coinciding NY Taxi Workers Alliance strike and protest at the airport caused many to deem the move opportunistic. Lyft, by contrast, addressed the immigration ban by donating $1 million to the American Civil Liberties Union.

#DeleteUber and their response

The backlash against Uber has been fierce and swift. The hashtag #DeleteUber began trending on social media, and last Sunday, Lyft downloads overtook Uber, maybe for the first time in the history of the two app’s rivalry.

Nobody wants to be deleted.Click To Tweet

In a staff memo (first obtained by the New York Times), Kalanick explained that “the implicit assumption that Uber (or I) was somehow endorsing the Administration’s agenda has created a perception-reality gap between who people think we are, and who we actually are.”

By contrast, Tesla and SpaceX founder and CEO Elon Musk responded to the executive order with a tweeted defense of his role on the President’s Advisory Council: “Advisory councils simply provide advice and attending does not mean that I agree with actions by the Administration . . . I believe at this time that engaging on critical issues will on balance serve the greater good.”

Elon’s stance

Tesla and SpaceX enjoy much more PR leeway than Uber. For one thing, its founder and CEO is well-known for his eccentricities and grand, literally out-there interplanetary aspirations.

No one expects Elon Musk to act predictably, or to bow to the public opinion that has previously doubted the feasibility of electric cars and private sector space travel.

Uber is more directly client-facing, more dependent upon “likeability,” not just pure tech innovation. Uber also has many more direct competitors, including their major national rival, Lyft. (Here in Austin, an Uber and Lyft-less city, we choose between RideAustin, Fasten, and Fare.)

Other Strategic and Policy Forum members include IBM chairman, president and CEO Ginni Rometty, Disney chairman and CEO Bob Iger, and PepsiCo CEO Indra Nooyi. As Trump keeps the surprise executive orders coming, various consumers and constituents can only wait and see how these leaders respond.

#UberDeletesTrump

Staff Writer, Natalie Bradford earned her B.A. in English from Cornell University and spends a lot of time convincing herself not to bake MORE brownies. She enjoys cats, cocktails, and good films - preferably together. She is currently working on a collection of short stories.

Business News

Etsy is trying on second-hand fashion with purchase of Depop

(BUSINESS NEWS) With the younger generation moving away from fast fashion, it makes sense that Etsy has acquired one of the most popular Gen Z second hand apps.

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Woman looking at a rack of clothes in a second hand thrift store

Over the last few years, sustainable shopping has been a bullet point in the large-scale topic of the environment. Burning through clothing by disposing of old clothing and shopping from places specializing in “fast fashion” is causing damage to the earth.

According to the UN Environment Programme, the fashion industry is the second largest consumer of water and is responsible for 8-10% of global carbon emissions – more than all international flights and maritime shipping combined.

As a result, shopping second hand has become more popular, as opposed to mass-produced fast fashion. Online platforms like Poshmark and ThredUp have grown tremendously over the last 3 to 5 years.

Now, Etsy is getting in on the resale action through its acquisition of Depop – a second hand fashion app that allows for the buying and selling of used fashion items.

Etsy paid $1.6 billion to acquire the UK-founded company, which has attracted a younger, Gen Z-based audience due to its social media use and messaging on shopping in an ethical and environmentally-friendly fashion.

Etsy CEO Josh Silverman said the company was “thrilled” to be adding what it believes to be the “resale home for Gen Z consumers” to Etsy. Depop has approximately 30 million registered users spanning 150 countries.

“Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale,” Silverman said in a statement Wednesday.

“We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, ecommerce brands.”

Due to the COVID-related e-commerce boom, shares of Etsy have more than doubled in the last year. The stock was up about 6.7% Wednesday afternoon.

According to data from Crunchbase, Depop had raised a total of $105.6 million from investors including General Atlantic, Creandum, Balderton Capital, Octopus Ventures and Klarna CEO and co-founder Sebastian Siemiatkowski, prior to their agreement with Etsy.

With fashion being so cyclical, it may be safe to say that second hand will never fully go out of style.

What are your thoughts on resale apps being the answer to fast fashion woes? Let us know in the comments.

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Business News

As masks become optional, businesses find themselves stuck in the middle

(BUSINESS NEWS) One liquor store’s decision on mask policy following changes in local laws has become a recurring story throughout the nation.

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Woman in front of small business with two children, all wearing face masks

The American mask debate has comprised a whirlwind of clashing political ideologies, legal dilemmas, and personal agendas, with businesses placed directly in the middle of the storm. As the pandemic continues to run its course, a disparity in state mandates and legislation is only serving to increase the strain on these establishments.

With increased access to vaccines and several states rolling back their COVID guidance, the option to wear—or not wear—masks is becoming more discretionary, with businesses often having the final say in whether or not they expect masks to be used on their premises. One such business, a liquor store, posted a notice regarding their staff’s decision to continue wearing masks:

“In accordance with Johnson County mandates: Masks are now optional. Please do not berate, verbally assault, or otherwise attack the staff over their choice to continue wearing masks.”

The notice went on to say, “It is painfully depressing we have to make this request.”

That last line epitomizes many business owners’ stances. Places across the country have started allowing customers to discard their masks with proof of vaccination, but if employees choose to keep their masks for the time being, it’s difficult for clients not to view it as a kind of political statement—despite their decisions often being corroborated by local laws.

And, as long as businesses continue to operate within the confines of those laws, their decisions should be free from public scrutiny.

Sadly, that’s not what’s happening as evidenced by the notice posted by the liquor store in Johnson County. The same disparity that allows for some freedom despite COVID still being present in many Americans’ lives often leaves those who choose not to wear masks to conclude that those who do wear them are being judgmental or unnecessarily cautious.

Those judgements work in reverse as well, with businesses who allow their employees to work maskless facing criticism from masked clients. It seems that the freedom to choose—something for which people strongly advocated throughout the pandemic—continues to cause separation.

As businesses change or adapt their regulations to fit state mandates and employee (and customer) concerns, everyone would do well to remember that the decisions these establishments make are usually meant to affect some kind of positive work environment—not to welcome harassment and abuse.

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Business News

You should apply to be on a board – why and how

(BUSINESS NEWS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.

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What?
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”

Why?
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.

We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.

Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:

1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.

As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.

When?
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).

The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.

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