Hope Indian startups dont emulate blindly
Uber’s Party Is Over: New Curbs on Alcohol, Office Flings
A workplace report details ‘frat-boy’ culture that lingered even after ride-hailing firm matured to $68 billion valuation
Uber’s board adopted workplace report recommendations, including limiting company spending on alcohol.
Uber’s board adopted workplace report recommendations, including limiting company spending on alcohol.
Alcohol-soaked parties, controlled substances, office romances and free dinner: those are the hallmarks of Uber Technologies Inc.’s raucous workplace—and many other startups.
A report Uber commissioned from the law firm of former U.S. Attorney General Eric Holder, released Tuesday, called out such details as part of what’s wrong with Uber’s culture. Uber’s board of directors unanimously adopted Mr. Holder’s recommendations, such as limiting company spending on alcohol.
A freewheeling culture of marathon late-night work sessions and frat-boy behavior often goes hand-in-hand with a startup’s fast-paced growth, experts say. But it can become detrimental as a company matures—in Uber’s case, to a $68 billion valuation and 12,000 employees. “What worked for 200 people doesn’t work for a couple thousand and can spin out of control,” said Ranjay Gulati, an organizational growth expert and professor at Harvard Business School.
Many startups stumble as they transition to a corporate culture, contributing to Silicon Valley folklore. Zenefits, the health-insurance brokerage startup, instituted a no-alcohol policy last year amid reports that employees were having sex in the office stairwells.
In 2011, two years before Twitter Inc.’s public offering, an impromptu party replete with marijuana broke out at its offices when the rapper Snoop Dogg and his entourage visited while top executives were away.
The report from the law firm, Covington & Burling LLP, recommended that Uber prohibit alcohol consumption during “core work hours,” limit budgets for alcohol during after-work events and come up with work retreats that don’t require drinking. It also addressed “prohibiting consumption of non-prescription controlled substances.”
The report did not include details of what episodes led to the recommendations. Other suggestions include serving the catered dinner earlier to indicate the work day is ending so people with families can go home.
The report also recommended that the company prohibit office romances between employees in a reporting relationship.
The landmines that erupted at Uber were not surprising, said Peter Cappelli, a management professor and the director for the Center for Human Resources at the University of Pennsylvania’s Wharton School. “There’s a pattern to these kinds of blind spots—young men found these companies at really young ages and you end up with a lot of frat-boy behavior.”
The demanding hours—and the behavior that ensues—is often a sign of an ambitious startup, some experts say.
Antonio Garcia Martinez, who has worked at Facebook Inc. and Twitter and is author of “Chaos Monkeys,” which chronicles the Silicon Valley startup culture, says “The reality is that 20-something ambitious males without a lot of life priorities outside of the companies that they’re working for build 90% of tech startups in Silicon Valley. So clearly that system works very well in the sense that it has generated a bunch of different companies.” more