Fully Vested

Yikes Indeed

Episode Summary

We discuss the ongoing situation related to COVID-19 especially as it relates to layoffs at Lyft, Uber and Airbnb including Uber’s contemplated acquisition of Lime and Grubhub and Airbnb hosts exploring options to book guests through other means.

Episode Notes

General

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Notes

Layoffs

According to Layoffs.fyi as of 2:18 PM on May 13th, 408 startups have laid off roughly 46,000 people since March 11.

• Uber laid off 3700 employees via a 3-minute zoom call and were given no notice prior to their dismissal. That represents about 14% of the company. The Information reported at the end of April that Uber was contemplating laying off 20% of its workforce. More layoffs may be in the works.
• Lyft laid off 17 percent off its staff, or 982 employees, at the end of April. The company also furloughed 288 other employees.
• Airbnb laid off 1,900 people, some 25 percent of the company, in early May. The company did create a talent directory to help its laid-off employees find new jobs.

Changing business models and climate

• Uber is in the middle of some big-money moves. The company approached Chicago-based GrubHub in February about an acquisition offer, and Uber led a funding round in Lime. Uber laid off its staff in the JUMP Bikes and scooter division, but through the Lime deal, Uber retains the right to acquire Lime in the future.
• Lyft meanwhile plans a $650 million debt offering, which can be convertible to cash or stock at the time of maturity in 2025.

Both Uber and Lyft are facing regulatory pressure around their classification of workers as independent contractors. In states with ABC-test based employee classification rules, Uber and Lyft may be compelled to provide benefits to their workers.

• Airbnb raised $1 billion in debt and equity from Silver Lake and Sixth Street Partners on April 6, 2020. Airbnb previously stated it's intent was to go public in 2020, but the virus may delay that.
• All the while, frustrated with company policy and mass cancellations, many Airbnb hosts are building their own booking websites.

About The Co-Hosts

• Jason D. Rowley is a researcher and writer, volunteers with the Python Software Foundation as an organizer of Startup Row at PyCon US, and sends occasional newsletters from Rowley.Report.
• Graham C. Peck is a Venture Partner with Cultivation Capital and additionally helps companies build technology development teams in partnership with Brightgrove and other technology development organizations.