According to a report from CNBC, Uber Technologies Inc will decrease recruiting and spend less on marketing and incentive programmes, citing a letter from Chief Executive Officer Dara Khosrowshahi.
After Facebook-owned Meta Platforms Inc (FB.O) said last week that it will scale down its employee development, the ride-hailing business is the latest to cut expenditures in order to have a lean investment model. continue reading
According to the CNBC story, Khosrowshahi said Uber’s strategy adjustment was a necessary response to the “seismic shift” in investor attitude.
“The least efficient marketing and incentive spend will be pulled back. We will treat hiring as a privilege and be deliberate about when and where we add headcount,” the report quoted Khosrowshahi as saying.
Last week, Uber announced that its driver base had reached a post-pandemic high, and the firm expects this to continue without large incentive spending, in contrast to competitor Lyft Inc, which has stated that it has to spend more on personnel.
According to the CNBC article, the company will now focus on attaining profitability on a free cash flow basis rather than adjusted earnings before interest, taxes, depreciation, and amortisation.
According to the company’s most recent earnings report, it expects to generate “significant positive cash flows” for the entire year.
According to the CNBC story, Khosrowshahi stated in his letter that Uber’s food delivery and freight operations need to grow quicker.
There were no comments available on the issue from Uber.
(Adapted from Kitco.com)