More on Uber
It reported its first quarterly profit in November 2021; more than a decade after launching. However, in August 2022 it reported a $US 2.6 b. loss for the second quarter; most of this ($US 1.7 b.) was attributed to the write-down stakes in
- Aurora (self-driving vehicle company)
- Grap ( Singaporean ride-hailing app)
- Zomato (Indian food delivery firm)
At the same time revenue more than doubled which pushed its share price higher."... The two halves of the business are now almost equal: deliveries booked $US 13.9 b. of sales in the quarter, mobility which has sales of $US 13.4 b. . Uber Eats was super-charged during the pandemic and now mobility and travel are bouncing back strongly as cities reopen..."
Patrick Durkin, 2022c
Uber Eats has grown from around $US 2 b. to 55 b in 5 years; it actively competes with the mobility part of the business for dominance.
In changing CEO from the founder Kalanick to Khosrowshahi, the philosophy has changed from 'growth at all costs' to 'growth, the right way'.
The new CEO has made the following changes:
- all staff to be in the office on Tuesday and Thursday
- a greater willingness to work with government and regulators, ie support for a minimum wage for gig workers with paid holidays and other benefits like cost recovery from capital expenses of buying a vehicle, funding leases, paying for fuel and maintenance, etc; classify these workers as employees, not independent contractors. At the same time, it wants to keep the flexibility in the system, ie drivers choosing to work when they want.
- increased delivery from takeaway food to delivering groceries in partnership with large retailers like Woolworths, PetBarn, Optus, JB Hi-Fi, etc
- moved into micro-mobility (scooters, bicycles, etc)
- increased use of electrical vehicles
- expand car rental company
- partnerships with traditional taxi companies in New York, San Francisco, Italy, Spain, Japan, South Korea, etc to use Uber's platform
- exploring $500 b freight sector by creating a real-time electronic marketplace for shippers to connect with truckers
"...we want to be like that operating system for everyday life. If you want to go somewhere and to get something, Uber is going to be there for you..."
Dara Khosrowshahi as quoted by Patrick Durkin, 2022c
Uber is still not keen to own physical infrastructure or assets. For this reason it sold Uber's interest in air taxis.