Uber CEO wants the 'love back' after rough 2017

Adjust Comment Print

While Uber is still on the path of massive growth, the main reason why its revenue now continues to outpace its losses lies in the firm's aggressive cost-cutting efforts spanning various departments; in Q4 2017, its core operating expenses excluding one-time costs amounted to 15.6-percent of its gross revenue whereas almost a quarter of its Q4 2016 revenue went directly into settling such expenses.

According to The Information, gross bookings for Q4 rose 14pc from Q3, a positive for the first full quarter under former Expedia chief Khosrowshahi's leadership. Uber's loss is based on generally accepted accounting principles, which includes writedowns, as well as the company's enormous legal expenses, such as the cost of defending against a trade secrets lawsuit from Alphabet Inc's Waymo.

The results also showed that Uber cut its fourth-quarter net loss by 25 percent from the third quarter as its new CEO moves to make the company profitable before a planned public stock sale sometime next year. These record levels just showed that Uber continues to raise its sales, while making an impact on its loss.

Uber posted a net loss of $1.1 billion in the fourth quarter, according to reports from various news organizations citing sources inside the privately held company. It also reported a negative cash flow of $160 million from operating activities.

Khosrowshahi called the suit "a personal affront" to Uber scientists because it "put their really good work under a question mark".

Uber's CEO offered an amibitous vision for the company, saying he didn't want it to be seen as purely a car-for-hire company - but one that would take any person on any transit system - "from point A to point B, whatever the best way".

Ride-share titan Uber on Tuesday revealed that its losses previous year swelled despite signs in the final three months that it was stemming the red ink.

The investment served as a part of the firm's plan to reform its board structure, as it prepares to go public next year. The company has been wracked by a string of scandals, sparked by allegations of sex discrimination by a whistleblower and peaking with the departure of embattled chief executive Travis Kalanick. Uber Technologies had a painful 2017, but its business has grown.

The job is proving to be even more hard than Khosrowshahi anticipated five months ago after Uber lured him away from online travel agency Expedia to replace its embattled co-founder, Travis Kalanick, as CEO. The position has been empty for many years now.