Travis Kalanick's CloudKitchens repeats Uber playbook, loses staff

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Travis Kalanick's talent for spotting game-changing trends has made him a key player in the food-delivery business. But hundreds of employees have left his Saudi-backed startup this year, many frazzled by a hard-knock and super-secretive culture. 👇

Berdakin and Diskin kept the property and operations teams in the dark from each other, so one rarely knew what the other was doing."They don't need to fucking know. They're idiots. Don't worry about it," a former employee recalls Diskin saying about the operations team.

Other ex-Uber executives, like head of finance Jake Galey, general counsel Mohit Abraham, and head of recruiting Lucas Partington, round out Kalanick's tough culture carriers. "Some businesses could operate well in that model, if there are multiple brands in one kitchen," one person said."But for the newcomer or someone who hasn't done this before, it could be challenging to make a profit. It wasn't smooth by any means."

Maybe the people who did go all in on equity will be filthy rich. But that's a huge risk to take, especially if you have a family and no other sources of wealth. The bonuses came in conjunction with CloudKitchens' first imposition of a hierarchy, which also went over poorly because bonuses, levels, and performance reviews seemed completely disconnected. Levels peaked at 10 — a ranking reserved solely for Kalanick — and were rolled out by the chief people officer, Emma Jeffries, who joined in July from records-management company Iron Mountain. The levels were added after the company began quarterly performance reviews last year.

Employees said they felt penalized if they asked for a bonus or a raise because it was viewed as a sign they didn't believe in their equity's potential. Some of those who could choose their bonus structure — cash or equity — said they felt pressure from managers to take the equity after Kalanick said at an all-hands that he wanted to invest the cash earmarked for bonuses back into the company.

 

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