FIRST MILLION: The insider's story to how Uber recruited its first one million drivers on its platform
Scott Gorlick, an early member of Uber's team, recently shared a fascinating insight into how the ride-hailing giant scaled up from a modest startup to a multi-billion-pound enterprise. Joining as employee number 99 in 2012, Gorlick played a pivotal role in recruiting Uber's first million drivers, a crucial step in the company's meteoric rise.
Gorlick's recount, revealed in a series of social media posts, outlines the innovative strategies employed by Uber to attract drivers to the platform. The initial challenge was significant: convincing drivers to join an unknown startup. To tackle this, the Uber team employed a grassroots approach.
Cold Calling and Pitching
One of the primary strategies was cold calling. The team scoured Yelp for lists of limousine companies in each new city, compiling spreadsheets of potential leads. They then made calls, pitching Uber as a flexible opportunity for drivers to fill their downtime between regular clients. The simplicity of the pitch, coupled with no upfront costs for drivers, made the proposition appealing.
Building a Referral Network
Another effective tactic was the referral programme. Once drivers experienced their first few trips, they were encouraged to refer friends, with bonuses offered as an incentive. This approach not only increased driver numbers but also built a community of advocates who believed in the Uber model.
Gorlick said: “Once a driver had the first few trips under their belt, we asked: "Do you have any friends who want to drive?" Referrals for new drivers flooded in and showed up at the office. When the new driver completed a certain # of trips, we paid a bonus.”
Strategic Outreach
The team also employed a strategic physical presence, renting conference rooms in hotels near airports. These venues were ideal for meeting drivers in person, offering coffee and conversations while drivers waited for their clients. The cost-effective nature of these meetings, often arranged for as little as $250, proved valuable in scaling driver recruitment.
Leveraging Online Platforms
Craigslist, a classified advertisement website, was another crucial tool. With just a $5 post, Uber could attract hundreds of driver sign-ups in each city. As the company expanded, they increasingly utilised more traditional advertising channels to complement these efforts.
Changing Driver Economics
A significant draw for drivers was the shift in economics Uber offered. Unlike traditional taxi or limousine arrangements, where drivers kept only a small percentage of their fares or paid high rental fees, Uber allowed drivers to own their vehicles and retain more of their earnings. This new model was particularly appealing, providing a more lucrative option compared to traditional taxi services.
Gorlick said: “If you were a taxi or limo driver, you might only keep 30% of your fares or have to pay $500 per week to rent your car. When Uber launched, drivers could buy their own cars and make more money.”
Gorlick's insights offer a rare glimpse into the early days of Uber, highlighting the combination of strategic innovation and ground-level work that fuelled the company's early growth. As Uber continues to expand globally, these early efforts in building a robust driver network remain a cornerstone of its success and interesting insight to those wishing to grow at scale in the market.
