FILE - In this Wednesday, Sept. 25, 2019, file photo Dara Khosrowshahi, CEO of Uber, speaks at the Bloomberg Global Business Forum in New York. Uber will begin cramming more services into its ride-hailing app as it explores ways to generate more revenue and finally turn a profit. The makeover announced Thursday, Sept. 26, will include force-feeding its food delivery service, "Eats," into the Uber app that millions of people use to summon a ride. (AP Photo/Mark Lennihan, File)
Can you believe that Uber has never made money? Well, even though they are now a publicly traded company, they are struggling to make money. They have expanded to every corner of the world, yet there are still many problems to overcome before Uber is profitable. The Uber CEO, Dara Khosrowshahi, is planning to take over the city life.
According to Wall Street analysts, this was expected. “It’s a routine cost for newly public companies—though Uber’s is much larger due to the company’s size – and investors are likely to forgive it as a one-off,” according to Bloomberg. It seemed this loss was already priced into the Uber stock price, as it actually increased slightly off of the news that its biggest competitor, Lyft, also made a nearly $1 billion loss. In after hours trade, however, it plummeted 12%.
Cars trips, of course, are the backbone of Uber’s business, according to the Uber CEO. But cars and cities are increasingly at loggerheads. In the interview with Khosrowshahi a few days after the Global Climate Strike when millions of people walked out of their schools and workplaces to protest inaction on the climate crisis, he had some thoughts. Uber and Lyft have been tied to rising car congestion in cities, just as they’ve been tied to declining ridership of public transportation. Uber wants to correct that by putting mass transit on equal footing with car trips.
The thinking goes: if given the choice between a $2.75 subway trip or a $30 car ride, most people will take the subway. Unless, of course, that subway is delayed. Then the car trip becomes the more attractive option.