Uber to open lounges in Westfield malls
SAN FRANCISCO — Uber's new CEO Dara Khosrowshashi is facing a traffic jam of issues, including federal probes, employee morale and London licensing woes.
But for the moment, the ride-hailing company is eager to make its shopping mall customers happier.
The company announced Monday a partnership with Westfield to create Uber-branded lounges in each of the company's 33 U.S. mall locations. The first Uber lounge will be at the upscale Westfield Shopping Center in Center City, west of downtown Los Angeles. You don't need to be an Uber customer to use the spaces.
"Located off Santa Monica Boulevard, the first-of-its-kind lounge will feature ultra-modern design, sleek seating, and other amenities so you can begin and end your Uber ride in style," reads the Uber blog post.
A sketch of the lounge doesn't offer many details. It shows a colorful area featuring a wooden bench, long white counters and a few screens. Uber says the lounges will be staffed by one attendant and offer coffee and tea.
Riders presumably benefit by getting to wait in a safe, well-lit place. But Uber's post adds that "there's something in it for drivers," adding that some mall locations will feature Uber kiosks where drivers "can ask questions and receive onboarding assistance."
The ride-hailing company, which continues to grapple with a series of self-inflicted wounds, has been working aggressively to mend its relationship with drivers, which includes a "180 Days of Change" initiative that has added tipping and information hotlines.
The Uber lounge-in-a-mall idea would appear to mimic the approach of airlines such as Virgin, whose hip, modernist, red-and-white themed ticketing areas and membership clubs have helped define the brand. In Uber's case, the lounges will be positioned near parts of the mall where dropoffs and pickups are recommended by the app.
Second-place Lyft, which according to some surveys has increased its U.S. market share from 10% to nearly 30%, has been aggressive about capitalizing on Uber's problems.
Beyond adding features to its app (such as the ability to donate to causes via a ride), Lyft has added cities at a fast clip and currently operates in 40 states. Uber's focus has long been global, with operations in 80 countries.
Mall lounge rollouts aside, the coming months will find Khosrowshahi and other Uber executives extremely busy.
A lawsuit brought by Google-owned Waymo over self-driving car trade secrets was due to go to court next month, but likely will be delayed a few months.
Uber is appealing London's transportation authority's decision to deny renewal of its license to operate in the global capital due to issues that include its sullied corporate culture and some of its questionable business tactics.
And the start-up's fractious board is dealing with a possible purchase of around $10 billion worth of shares by Japanese investors SoftBank and its investors, according to Bloomberg. That deal could shift the balance of power in the company away from co-founder and former CEO Travis Kalanick, who was replaced by Khosrowshahi but is eager to retain oversight of Uber.
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