Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Heisenberg Media/Creative Commons

Uber's dysfunctional and toxic work culture is the headline reason for its current chaos. It threatened Uber's reputation and ability to attract and keep top talent.

But, as CEO Travis Kalanick goes on leave and loses some of his power when he comes back, a risk remains to Uber's out-of-this-world, $68 billion valuation. Dogged by a lawsuit that it stole its self-driving technology from Waymo, Uber has lost the undisputed perception of a company as likely as any to be central to the future of transportation. The Waymo case threatens to leave Uber armed with one of the world's best-known brand names, but still a taxi service, and less prepared than competitors for the widely forecast shift to self-driving cars, a transformation that Kalanick himself has called "basically existential" for Uber.

Kalanick's strategy: He has argued that Uber's enormous valuation — it is the most valuable startup in the world — is justified by his plan to create a self-driving fleet, and eliminate many of the company's costly drivers. Analysts largely agree with the strategy. But the proprietary technology on which he has been relying is now the subject of the Waymo lawsuit, putting the company as conceived at grave risk. The trial begins in October.

Kalanick successfully muscled his way into markets around the world, said Kevin Rivette, of Sherpa Technology Group, a Silicon Valley consultant firm. But — while stirring up a hornet's nest of trouble — he also failed to build a rich foundation of intellectual property under Uber's feet. This has left it "a company based on plans and an idea," rather than one armed with its own valuable, protective inventions, Rivette told Axios.

Last year, Aswath Damodaran, a valuation expert at New York University, said that Uber's biggest problem was parlaying its outsized market size into outsized profits. That's why he estimated Uber's valuation at about $23 billion, much less than the $68 billion at which its latest investors bought shares. Uber's challenge now is to justify the greater number.

  • Intellectual property isn't the sole basis for a company's valuation or predictor of its ultimate success, and Uber is improving its AI algorithms. But, aiming to come out on top in a brutally competitive space in which IP is a central factor while also validating its sky-high valuation, Uber has said it's crucial to develop its own autonomous driving technology.
  • Uber's technology relies on Lidar, a sensing system. "If I was sitting on Uber's board, I would say, 'Let's pick up every patent related to that," Rivette told Axios.

Go deeper

1 hour ago - Health

Treasury begins dispersing $350 billion in COVID relief funding to states and localities

Treasury Secretary Janet Yellen. Photo: Tasos Katopodis/UPI/Bloomberg via Getty Images

The U.S. Treasury on Monday began giving state and local governments access to $350 billion in emergency funding from the American Rescue Plan, the department announced Monday.

Why it matters: Though the money is aimed at helping state, local, territorial and tribal governments recover from the pandemic's economic fallout, the administration will generally give them wide latitude on how they can use the funds.

Game developers break silence around salaries

Illustration: Annelise Capossela/Axios

Developers are sharing their salaries on Twitter under the hashtag #GameDevPaidMe to encourage pay transparency in their industry.

The big picture: The hashtag started circulating last year, but has returned periodically as developers fight for better working conditions. Salary sharing is a way to equalize the field. By removing the secrecy, as well as the stigma, around discussing pay, workers have more power to advocate for themselves when negotiating salaries and raises.

2 hours ago - World

Jerusalem crisis: Hamas fires rockets, Israel begins military campaign

Palestinian protesters and an Israeli police officer near the Damascus Gate. Photo: Amir Levy/Getty Images

Days of tension in Jerusalem escalated into an exchange of fire on Monday, as Hamas fired dozens of rockets toward Israel and the Israeli military responded with strikes of its own and said it was preparing for a military operation that could last several days.

Why it matters: This is the first time Hamas has fired rockets at Jerusalem since 2014, and it's the most serious escalation between the Israelis and Palestinians in many months. It comes during the most sensitive days on the calendar — the last days of Ramadan and the Jerusalem Day commemoration on Monday — and as political crises roil both the Israeli and Palestinian governments.