Uber shares drop as Softbank plans to sell shares to cover Didi losses
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019. SoftBank is selling about one-third of its stake in ride-hailing company Uber to cover losses on its investment in Chinese ride-hailing company Didi, two people familiar with the matter told CNBC. It's planning to sell 45 million shares, which will have a 30-day lockup. Uber shares fell 5% in extended trading following the report. SoftBank has lost about $4 billion on its Didi position in total, CNBC's Deirdre Bosa reported.cnbc.com
EXPLAINER: How Uber UK case could foreshadow gig work revamp
It's an early sign of what companies like Uber face as authorities get to grips with regulating the app-based gig economy. San Francisco-based Uber Technologies Inc. says a driver's minimum wage will be calculated based on the time they accept a trip through the app. Of course you should," said James Farrar, one of two former Uber drivers who filed the initial claim. THE GIG ECONOMY'S FUTUREThe Uber case is part of broader efforts to rein in the gig economy that are gaining traction, at least in Europe. AdCEO Dara Khosrowshahi has been a dvocating for reforms to what he called outdated labor laws that force gig workers to choose between flexibility and social protections.
Uber grants UK drivers worker status after losing major labor battle
On the heels of losing a major labor battle in the United Kingdom, Uber will reclassify all U.K.-based drivers as workers. While the move will increase Uber's costs in the U.K., the company is still targeting adjusted EBITDA profitability by year-end. Earlier this year, Uber lost a major legal battle in the U.K. around this issue. The country's Supreme Court upheld a ruling that a group of drivers were workers, not independent contractors. In turn, gig workers received some benefits without full employment status.cnbc.com
Ride-sharing stocks a rare bright spot in otherwise miserable day for tech
Ride-sharing stocks closed Wednesday as a rare bright spot for tech stocks in an otherwise weak day for the sector that's seen strong growth in the past year. Shares of Lyft closed up more than 8% as investors rallied around the company after it said it's seeing rideshare recovery sooner than expected. The tech sector's drop came as the 10-year Treasury yield extended its gains. Higher bond yields can hit technology stocks particularly hard as they have been relying on easy borrowing for superior growth. The largest tech stocks weren't spared either.cnbc.com
Lyft says it just had its best week for rides since pandemic lockdowns began
Lyft is seeing a recovery in ridesharing sooner than it had expected. Lyft now expects to manage its adjusted EBITDA loss in the first quarter to $135 million, from the $145 million to $150 million it previously forecast. The company said in the filing that the last week of February was its best week in terms of volume since pandemic lockdowns began in March of 2020. Additionally, Lyft expects the recovery to continue into this month and show positive year-over-year growth in ridesharing volume for the second half of March. Even as ridesharing volumes plummeted amid the pandemic, Uber and Lyft, the two main U.S. players in ridesharing, have committed to become profitable by the end of 2021 on an adjusted EBITDA basis.cnbc.com
Uber won’t buy bitcoin with its cash but would consider accepting it as payment, CEO says
Uber CEO Dara Khosrowshahi told CNBC on Thursday the company discussed but "quickly dismissed" the idea of buying bitcoin with corporate cash like Telsa. However, Khosrowshahi said Uber would consider accepting cryptocurrencies as payment. As of Dec. 31, Uber reported it had $5.65 billion in cash and cash equivalents, along with $1.18 billion in short-term investments. While bitcoin has seen increased institutional adoption lately, some still believe there's still too much uncertainty about its future. Like Uber, PepsiCo CFO Hugh Johnston told CNBC on Thursday that the beverage giant has "had the conversation" about buying bitcoin with its cash.cnbc.com
Uber's 4Q loss narrows, raising hopes for pandemic recovery
In 2020, the ride-hailing service was forced to rely more heavily on its food-delivery service. But analysts believe Uber’s pioneering ride-hailing service will also eventually bounce back as more people are vaccinated against COVID-19. He also predicted that Uber's losses may evaporate by the end of this year. The company’s ride-hailing service brought in revenue of $1.48 billion in the quarter, a 52% drop from the prior year. Meanwhile, revenue in Uber's food-delivery service more than tripled from the previous year to $1.37 billion.
Uber losses narrow as delivery growth outpaces fall in ride-sharing
Uber's stock fell more than 3% after the bell on Wednesday as the company delivered mixed fourth-quarter earnings results, as its ride-hailing business slowly recovers and its delivery business booms. Here's how Uber did versus expectations:Loss: 54 cents per share, versus 56 cents expected, according to a consensus of analysts surveyed by Refinitiv. Revenue: $3.17 billion versus $3.58 billion expected per Refinitiv. According to a statement from Uber, the deal was valued at $1.1 billion in stock and cash combined. (The companies did not break down the portion of the deal done in stock versus cash.)cnbc.com
Walgreens and Uber team up to make sure underserved communities have access to COVID-19 vaccines
Retail pharmacy chain Walgreens and rideshare app Uber are teaming up to take on disparities in COVID-19 vaccine access, by giving people in underserved communities free rides to vaccine appointments. "It's our belief that transportation should never be a barrier for health care, especially as it related to something as important as vaccinations," Uber CEO Dara Khosrowshahi said on "CBS This Morning" Tuesday. Americans in the communities served by the program do not already need an Uber account to participate, Khosrowshahi said. Rina Shah, Walgreens' vice president of pharmacy operations and services, pledged the company would "ensure that those individuals that are eligible are the ones able to schedule an appointment." Walgreens has already provided 2.3 million vaccines to Americans across the country, and starting Friday, the pharmacy chain will expand vaccinations in stores across 15 states and major cities.cbsnews.com
Uber agrees to buy alcohol delivery service Drizly for $1.1 billion
Uber announced Tuesday it is acquiring alcohol-delivery service Drizly for $1.1 billion in stock and cash. Following the completion of the transaction, Drizly's marketplace will be integrated with the Uber Eats app. Founded in 2012, Drizly has become the leading on-demand alcohol delivery service in the U.S. and is available in 1,400 cities. "During this time our delivery business as been growing at extraordinary rates," Uber CEO Dara Khosrowshahi told CNBC on Tuesday. After talks failed to acquire food delivery service GrubHub, Uber acquired Postmates last July.cnbc.com
Uber CEO: We're not giving up on self-driving after selling off the business
Uber announced Monday it was selling its self-driving unit, Advanced Technologies Group, to Aurora Innovation, but CEO Dara Khosrowshahi said he doesn't believe the company is giving up its self-driving play. "What's crucial is for us to have access to the very best and leading autonomous technology out there," Khosrowshahi said on CNBC's "Squawk Box." "What we want to make sure is as that technology is developed, it's developed for Uber network and is available for the Uber network at scale." As part of the deal, Khosrowshahi will join the Aurora's board, and the ride-sharing giant will invest $400 million into the company. "What this deal does is essentially bring two leading teams together in the autonomous space," Khosrowshahi said.cnbc.com
Uber, hard-hit by pandemic, sells its robot-vehicle division
SAN RAMON, Calif. – Uber is selling off its autonomous vehicles development arm as the ride-hailing company slims down after its revenues were pummeled by the coronavirus pandemic. Self-driving vehicle technology company Aurora will acquire the employees and technology behind Uber's Advanced Technologies Group in an stock transaction, the companies said Monday. Uber will also invest $400 million into Aurora, and Uber's CEO Dara Khosrowshahi will join Aurora's board of directors. After the transaction, Aurora will be worth $10 billion and Uber will hold 26% stake in the company, Aurora CEO Chris Urmson said in an interview. San Francisco-based Uber will lose a critical piece of its company after the pandemic cut into its finances by suppressing demand for shared rides.
Uber sells its self-driving unit to Aurora
Uber's self-driving unit, Advanced Technologies Group (ATG), is being acquired by its start-up competitor Aurora Innovation, the companies announced Monday. Uber CEO Dara Khosrowshahi will join the company's board, and the ride-sharing giant will invest $400 million into the company. Overall, Uber and ATG investors and employees are expected to own a 40% stake in Aurora, according to a regulatory filing accompanying the deal; Uber alone will hold a 26% stake. "Few technologies hold as much promise to improve people's lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles," said Uber CEO Khosrowshahi in a statement. ATG had been a long-term play for Uber, but the unit brought high costs and safety challenges.cnbc.com
Uber shares surge to record as investors look past mounting losses and toward vaccine
However, while Uber's stock has erased its post-IPO losses and finally generated some gains for investors, Lyft remains almost 50% below its debut price from last year. Uber has partly offset declines in its core ride-sharing business this year through Uber Eats. Still, the delivery business lost $183 million on an adjusted basis, after a deficit of $232 million in the second quarter. The negative margin in the delivery business shrank to 16.1% in the third quarter from 26.2% in the second quarter and 59.4% in the first. WATCH: Uber's delivery growth shows better to path to profits versus mobilitycnbc.com
Uber's food delivery business outshines core rides service
Uber's food delivery business brought in more money during the third quarter than its signature rides business, showing just how much consumer behavior has changed — and how far the company has adapted — since the pandemic struck. Uber brought in $3.13 billion in revenue, down 18% from the same time last year. Despite the decline, the rides business showed improvement from the second quarter, when it brought in just $790 million. Uber’s food delivery business also brought in more revenue than its rides business in the second quarter, when demand for rides was even lower due to the pandemic. However, its rides business was more profitable than delivery.
Ride-hailing, delivery giants win fight against labor law
Uber, Lyft, Doordash, Instacart and others sought to get out of those requirements, and after failing in court, succeeded in convincing voters to give them an exemption from most of the year-old law’s provisions. A record $200 million spending spree by the companies and their supporters helped them win the vote. The investment yielded a huge return for Uber and Lyft, whose combined market value climbed by $8 billion on Wednesday. Uber, Lyft and, DoorDash, Instacart and their supporters accounted for roughly $200 million that amount, underscoring how badly the companies wanted to preserve their business model. “It’s not really fair that Uber, Lyft etc.
Uber, Lyft spend big, win in California vote about drivers
FILE - In this Aug. 20, 2020, file photo travelers request an Uber ride at Los Angeles International Airport's LAX-it pick up terminal. A California ballot measure that would exempt Uber, Lyft and other app-based delivery drivers from being classified as company employees eligible for benefits and job protections led Tuesday, Nov. 3, 2020, in early vote counts. San Francisco-based Uber and Lyft had threatened to pull out of California if they lost. Opponents said the companies exploit drivers to keep profits high and the ballot measure would deprive workers of rights like overtime pay and workers’ compensation. Supporters said the measure would allow drivers to maintain the freedom to work hours they choose and would provide other benefits.
Uber and Lyft expected to prevail in California ballot measure exempting them from state labor law
California voters decided Tuesday that Uber and Lyft should be exempt from state labor law that aimed to make their drivers employees rather than contractors, according to projections from NBC News. While that would disqualify them for benefits granted to employees, the measure also entitles drivers to new benefits like minimum earnings and vehicle insurance. Several gig economy apps backed the measure, including Uber, Lyft, DoorDash, Instacart and Postmates, which Uber is acquiring. Like Uber and Lyft, these companies also rely heavily on gig workers for their delivery services. WATCH: Uber, Lyft spend millions on campaign to protect their business in Californiacnbc.com
Uber and Lyft face setback in case to reclassify workers, but it's far from over
Uber and Lyft must comply with a preliminary injunction requiring them to stop classifying drivers as independent contractors pending further action, an appeals court ruled Thursday. Uber and Lyft will likely have about 60 days to ask the California Supreme Court to review the decision. 22," a Lyft spokesperson said in a statement, adding Lyft is still considering all legal options, including an appeal to the California Supreme Court. But remember, companies like Uber and Lyft that classify gig workers as 'independent contractors' don't pay into unemployment benefit funds for workers. That means that American taxpayers — not gig companies like Uber and Lyft — are covering the unemployment benefits that gig workers are receiving from the COVID bailout."cnbc.com
Ready to vote but need a ride? This company says it’s stepping in to help
And just like every election year, it’s of the utmost importance that citizens cast their ballot in this year’s election. If you’ve registered but are already concerned about how you will make it to a polling station, the ride-sharing company Uber wants to step in and lend a hand. As Election Day approaches, and as part of its “Get Out the Vote” campaign, the company aims to help people find their polling location, as well as offer discounted rides to and from the poll during early voting. “As we look ahead to this year’s election, we are committed to doing our part to make sure every citizen has access to vote,” Uber CEO Dara Khosrowshahi said. Uber officials said as Election Day nears, people will begin to have access to important information in the app.
Tornado, virus, protests rattle Nashville rideshare economy
Then came what she calls Nashvilles quadruple-whammy: a tornado, coronavirus closures, protests that rocked downtown, then more closures. Bicknese says business has gone from dismal to tolerable, but only because so many drivers have voluntarily stayed home. Bicknese chose to keep driving because she didn't think she could make her car and insurance payments on unemployment. Then what happened is so many drivers filed for unemployment and stopped driving that demand came back," she said. Instead of well-heeled tourists, Bicknese finds herself driving people on unemployment, factory workers and patients travelling to medical appointments.
Uber cuts 3,000 jobs as pandemic slashes demand for rides
NEW YORK Uber has cut 3,000 jobs from its workforce, its second major wave of layoffs in two weeks as the coronavirus slashed demand for rides. It will also pursue strategic alternatives for its job recruiting app, Uber Works, Khosrowshahi said. I wanted there to be a different answer ... but there simply was no good news to hear.Uber's rides business, the company's main profit generator, fell 80% in April compared to the same month last year. Uber's drivers are considered freelance or contract workers, not full-fledged employees, so despite the sharp drop in their incomes from obliterated demand, they are not eligible for severance or benefits from the company. One silver lining to the pandemic is that Uber's Eats business has become more important to people staying home and restaurants, and delivery is here to stay, Khosrowshahi said.
'Feels like we're at the bottom': Some executives see signs of recovery in April
But in the last couple of weeks, many company executives and investors across industries say they are seeing small signs business is picking up again. Tech optimism: 'Signs of stability'Companies throughout the tech industry expressed cautious optimism on earnings calls for the March quarter, suggesting that things were starting to look up in April after an alarming drop-off in March. That began to recover some in March, and we've seen further recovery in April. Auto industry: 'We are over the worst'Automakers have seen signs of a rebound sooner than many initially expected when the coronavirus started devastating the industry in March. "We think it's very good that we're seeing the recovery in China that is more like a V recovery, but we're not counting on that," Barra said.cnbc.com
Uber CEO says drivers should get healthcare benefits based on how much they work, and Uber would pay for it
Drivers should earn healthcare benefits commensurate with the hours they work, he said Friday in an interview on CNBC's "Squawk Box." "If you're putting in the hours, you should get minimum earnings based on the hours that you're working and you should get healthcare based on the hours that you're working. Khosrowshahi said Uber would put money into a fund based on the hours workers put in. That fund would pay into workers' healthcare benefits and minimum earnings. The letter also asked for gig workers to gain access to unemployment benefits allocated in response to the coronavirus pandemic.cnbc.com
Uber shares shoot up after CEO says ride volume is increasing again after April bottom
The company's shares initially dipped after hours, but then shot up as much as 10% as CEO Dara Khosrowshahi expressed optimism that ride volume is picking up again after bottoming out in mid-April. Gross bookings in Uber's core business segment, Rides, fell 5% from a year ago. In addition, gross bookings for its food delivery segment, Eats, were up more than 50% year-over-year as more people ordered food for delivery at home, and a greater variety of restaurants signed up to offer delivery, too. According to Refinitiv, analysts were expecting a loss of 88 cents per share and revenue of $3.5 billion. However, estimates range widely, and comparing Uber's actual results with these isn't straightforward given the unpredictable spread and impact of Covid-19.cnbc.com
Uber leads $170 million investment in scooter company Lime
Uber is leading a $170 million investment round in Lime, the electric scooter and bike rental company announced Thursday. Bain Capital Ventures, Alphabet and separately its venture capital arm GV are also participating in the financing round, Lime said. Under the deal, Uber will transfer its own electric bike and scooter division called Jump to Lime and the companies will further integrate their apps. Lime global head of operations and strategy Wayne Ting will become CEO of Lime while outgoing CEO Brad Bao will become chairman. The Information reported on talks between Uber and Lime earlier this week and said the $170 million investment would value Lime at $510 million, 79% below its previous valuation.cnbc.com
Uber reports massive losses, and big layoffs hit Silicon Valley's lucrative start-up sector: CNBC After Hours
Today, CNBC's Kate Rooney also takes a look at the widespread layoffs hitting the lucrative tech sector and start-up scene. Here's what you missed in business news today:Uber's quarterly net loss balloons to $2.9 billion, its biggest loss in three quartersRide-hailing giant Uber just reported first-quarter results. The net loss of $2.9 billion, total, included $2.1 billion in impairment charges from companies in which Uber has a stake, but represented Uber's biggest loss in three quarters. Gross bookings in Uber's core business segment, Rides, fell 5% from a year ago. However, on the company's earnings call, CEO Dara Khosrowshahi said that the Rides business was down around 80% in April from last year, suggesting a hard Q2 ahead.cnbc.com
Uber to lay off 3,700 employees, about 14% of workforce
Uber said Wednesday it will lay off 3,700 employees and that CEO Dara Khosrowshahi will forgo his base salary for the rest of the year. The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. Khosrowshahi hinted in a memo to employees Wednesday that more cost cuts are on the way. "We are looking at many scenarios and at each and every cost, both variable and fixed, across the company," Khosrowshahi said. Khosrowshahi said Uber would give employees "a further, final update" within two weeks.cnbc.com
Uber shares pop after the company scraps guidance and forecasts investment writedown
Uber shares rose as much as 7% in extended trading on Thursday after the company said that it was withdrawing guidance given during its Q4 earnings call and warned that it expects an impairment charge because of declines in investments. The company's ride-sharing and delivery businesses have been affected by the coronavirus pandemic and lockdowns, but Uber has given little guidance on the expected effects. Investors may be cheered by the relatively small effect of programs that Uber rolled out to help drivers during the pandemic. Uber also said it would take a one-time charge between $1.9 billion and $2.2 billion on the value of equity investments, affecting GAAP net loss by that amount. Last year, Uber reported $8.51 billion net loss, primarily because of stock-based compensation.cnbc.com
Uber to offer 10 million free rides, deliveries to health care workers, seniors during COVID-19 pandemic
Uber says it will offer 10 million free rides and deliveries to health care workers, seniors and people in need as the coronavirus pandemic spreads. Uber CEO Dara Khosrowshahi said in a statement Tuesday the ride-hailing service already offers free rides and meals to health care workers in the U.K."Thank you to the healthcare workers who are saving lives," Khosrowshahi said in a statement. Uber encouraged more cities, hospitals and other services to reach out for help with rides or food deliveries. Last week, ride-hailing service Lyft said it was exploring government and health care partnerships where drivers could deliver medical supplies, food and other necessary items. Automakers, including Ford and GM, started making ventilators, while retailer Gap said it shifted factory partners to start making personal protective equipment for health care workers.monroenews.com
Gig workers for companies like Uber, Lyft would get unemployment benefits under $2 trillion Senate stimulus bill
Gig workers won a landmark protection in the $2 trillion stimulus bill that passed in a unanimous 96-0 vote in the Senate Wednesday. The bill would allow gig workers, such as Uber and Lyft drivers, as well as freelancers and the self-employed to be eligible to apply for unemployment benefits. The protection also marks a win for the companies that employ gig workers and rely on them for their businesses to function. California recently enacted a law that aims to reclassify gig workers as employees, which Uber has challenged in a lawsuit with Postmates and two of its contractors. The reclassification would require companies relying on gig workers to take on costs of full-time employers, such as healthcare benefits.cnbc.com
Stocks making the biggest moves after hours: Zoom Video, Fiat Chrysler, Twitter and more
Zoom founder Eric Yuan poses with members of his company in front of the Nasdaq building in New York as the screen shows the logo of the video-conferencing software company Zoom after the opening bell ceremony on April 18, 2019. Twitter The social media company's stock whipsawed in extended trading after Twitter announced that it was withdrawing its revenue and operating income guidance for the first quarter because of the coronavirus. Uber The ride-sharing company's stock dipped and then rose after the closing bell. Zoom Video Communication The video conferencing company saw shares rise almost 2% after the market closed. Earlier today, the company's stock rose 22% as investors went for stocks that could see positive developments as more people work from home because of the coronavirus.cnbc.com
Uber CEO asks Trump to support gig workers impacted by the coronavirus
Such a change would require Uber to take on additional expenses to protect its workers, like healthcare costs. Now, rather than give into attempts to reclassify workers, Uber is turning to the government to plead for help on their behalf. Uber and other companies relying on gig workers like Lyft and DoorDash have opposed a new law in California that aims to reclassify its workers as employees. Proponents of the law say it protects workers who are clearly core to the businesses of companies like Uber. Uber has already taken some steps to help its workers impacted by the crisis, as Khosrowshahi outlined in his letter.cnbc.com
Uber stock skyrockets after CEO says it has plenty of cash to get through coronavirus crisis
Uber CEO Dara Khosrowshahi said the rides segment is seeing a 60% to 70% decline in areas hit hardest by the coronavirus pandemic, but has also seen growth in its food delivery business Uber Eats. Shares of Uber saw all-time lows this week as investors likely viewed Uber more as a travel company than tech business. Uber stock on Wednesday closed at $14.82 per share, down more than 68% from its all-time high of $47.08. Correction: An earlier headline overstated Uber's statement about the effects of the coronavirus crisis on its operations. CEO Dara Khosrowshahi said he believes "the worst of the impact and the recovery" is happening "in some places."cnbc.com
Uber falls to all-time low as investors continue to measure coronavirus risk
Dara Khosrowshahi, CEO of Uber, appears on CNBC's Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan,. Shares of Uber fell to fresh lows Thursday as investors continued to grapple with the rapid spread of COVID-19. The stock dropped 12.35% to $23, falling below its previous intraday low of $25.58 on Nov. 6. The intraday low came amid a broader market sell-off, after a speech from President Donald Trump failed to ease concerns over a possible economic slowdown. The World Health Organization on Wednesday declared the new coronavirus a global pandemic, after the deadly virus spread to more than 121,000 people from Asia, the Middle East, Europe and the United States.cnbc.com
Uber acknowledges coronavirus poses material risk to its business
Dara Khosrowshahi, CEO of Uber, appears on CNBC's Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan,. Uber on Monday acknowledged, for the first time, that the novel coronavirus poses a material risk to the company's business. Early last month, as SARS-CoV-2 began to take a toll on human health and industry in China and beyond, Uber CEO Dara Khosrowshahi told CNBC that the company didn't anticipate the virus would impact its overall business. During a Squawk Box interview on February 7, he said: "We're not seeing a significant effect on the business overall. For example, business in Hong Kong, airport business is down pretty significantly, from an overall standpoint with our portfolio it's not material in any way."cnbc.com
Stocks making the biggest moves midday: Uber, eBay, T-Mobile & more
Check out the companies making headlines in midday trading on Friday. T-Mobile Shares rose more than 2% after the company reported fourth-quarter earnings that beat analysts' expectations on the top and bottom line. eBay eBay slumped 3.5% on Friday after NYSE-parent company Intercontinental Exchange announced that it would not continue to explore a possible acquisition of the e-commerce company. Pinterest Pinterest rose more than 12% in midday trading after the company reported better-than-expected profit and revenue for the fourth quarter. The company expects earnings per share to range between 1.33 Canadian dollars per share and CA$1.37 per share.cnbc.com
Coronavirus live updates: Pace of new cases in Hubei on the rise again; cruise lines ban Chinese nationals
There had been a further 2,841 cases detected in Hubei, the epicenter of the outbreak, taking the total in the province to 24,953. World Health Organization earlier said it was encouraged by a slowing pace of new cases over the past two days, however, this latest data reverses that trend. The decision comes as several cruise ships around the world endure coronavirus outbreaks and scares. Lovelace11:47 am: WHO says cases in China are slowingThe number of new coronavirus cases slowed in China for a second day, but it's too early to celebrate, World Health Organization officials said at a news conference. Feuer10:14 am: WHO holds press conference on outbreakWorld Health Organization officials are holding a press conference to update the public on the new coronavirus outbreak.cnbc.com
Uber CEO walks back comment on Saudi writer's slaying
NEW YORK, NY Uber CEO Dara Khosrowshahi caused a backlash by calling the murder of Washington Post columnist Jamal Khashoggi "a mistake" in an interview with Axios on HBOKhosrowshahi later said he regretted his comments. U.S. and United Nations officials suspect that Saudi Arabia's Prince Mohammed bin Salman played a role in Khashoggi's slaying, but the Kingdom denies it. In his interview with Axios, Khosrowshahi said people make mistakes, and it doesn't mean they can never be forgiven. Saudi Arabia's sovereign wealth fund has invested heavily in Uber and its managing director sits on Uber's board. Khosrowshahi was brought in as CEO to turn around a company plagued with self-inflicted wounds.
While losses mount, Uber CEO expects profitability in 2021
FILE - In this May 10, 2019, file photo the statue of Fearless Girl stands in front of the New York Stock Exchange before Uber holds its initial public offering. (AP Photo/Mark Lennihan, File)NEW YORK, NY The losses at Uber are mounting, but the ride-hailing heavyweight now predicts it will be profitable in about two years. CEO Dara Khosrowshahi told reporters Monday that the company's goal is to reach profitability when adjusted for interest, taxes, depreciation and amortization for the full year of 2021. In response, Uber and Lyft proposed a ballot initiative aiming to exempt their companies from the new law. Some analysts are concerned that a deluge of Uber stock will flood the market later this week when a lockup period expires, allowing major shareholders, including company executives and investors, to sell their shares.
Uber lays off 350 more workers in last wave of cuts
KTXL via CNN(CNN) - Uber laid off approximately 350 employees across several different teams on Monday, a spokesperson confirmed to CNN Business. In addition to the cuts, some employees were asked to relocate to other offices. Over 70% of the employees impacted by this round of layoffs are based in the US and Canada. In September, Uber laid off about 435 employees from its product and engineering teams. In August, Uber reported its largest quarterly loss ever: $5.2 billion in the three months ending in June.
Uber's new offerings don't measure up to its challenges
Justin Sullivan/Getty Images(CNN) - With pressure mounting on its business, Uber decided to take a well-worn page from the Big Tech playbook: hold a flashy press event. Khosrowshahi also showed off what he described as "the next generation of the Uber app," with more integration of its food delivery and micromobility services. "It's lipstick on several pigs at once," said David Kirsch, a University of Maryland business professor. Gad Allon, a professor at the University of Pennsylvania's Wharton Business School, described Uber's announcements as focusing on small issues when big challenges remain unresolved. Chen also thinks that Uber's announcement of expanding its rewards program to include food delivery will be helpful.
Uber is laying off hundreds of staffers, again
Justin Sullivan/Getty Images(CNN) - Uber laid off hundreds more employees -- this time, across its engineering and product teams in an effort to "reset." The company confirmed to CNN Business Tuesday that about 435 positions -- 170 in its product team and 265 on its engineering team -- were eliminated. The company said the layoffs represent about 8% of the product and engineering teams. Notably, the layoffs did not impact product and engineering staffers working on its growing meal-delivery business known as Eats. After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no."
Uber burned through $5.2 billion last quarter
CNN imageSAN FRANCISCO, Calif. - Even by Uber's standards, the company burned through a staggering amount of money in its most recent quarter. Uber said Thursday that it lost $5.2 billion in the three months ending in June, its largest quarterly loss ever, fueled mostly by $3.9 billion in stock-based compensation expenses related to its public offering during the quarter. Without those charges, however, the company still lost about $1.3 billion during the quarter, a roughly 50% spike from the year prior. Khosrowshahi stressed that Uber's ride-hailing service, along with its meal delivery service, each have the potential to "be a spectacular business long-term." But even as it invests aggressively, Uber's revenue growth continues to slow.
Uber lays off 400 people on its marketing team
Justin Sullivan/Getty ImagesUber is laying off roughly one-third of its global marketing staff. In an email sent by Uber CEO Dara Khosrowshahi to staff and seen by CNN Business, he says, "we are not making these changes because Marketing has become less important to Uber. The layoffs are just the latest turbulence inside Uber in the less than three months since it went public. In early June, Khosrowshahi announced that two top executives were leaving the company, including chief marketing officer Rebecca Messina. According to an Uber spokesperson, Hazelbaker and Khosrowshahi announced a new marketing team structure to staff Monday.