Tag Archive | "Uber"

Uber CEO Reveals Formula To Profitability

“Scale is the primary driver toward profitability,” says Uber CEO Dara Khosrowshahi. “It’s getting big. We’ve got over a billion rides per quarter and we’ve got trips growing at 35 percent on a year on year basis. It’s a combination of growing top-line over 35 percent, technology innovation to delight the customer and take costs down at the same time, and then good old fashioned efficiency, making sure that our corporate costs don’t grow as fast as our revenue. All of those together give you a formula to get to profitability.”

Dara Khosrowshahi, CEO of Uber Technologies Inc., discusses how Uber can continue to be transformational and ultimately be profitable in an interview on Bloomberg Technology:

Uber Can Continue To Be Transformational

We have resolved all of the governance conflicts that the company had. There were many legal issues that the company was involved with. We have SoftBank as a partner and you want SoftBank to be behind you and a big partner and a big investor. We have a great investor base. We’ve taken the company public and company’s revenue, gross bookings, have grown 75 percent since I joined. We now have a path to profitability. So while we’ve had bumps on the road, and every adventure has bumps on the road, I like where we are. I especially like the position we are in now for the next two years.

I think Uber (can continue to be transformational over the next decade). Really what Uber has done is brought transportation and opportunity at this point to what we believe is just a small segment of the population. We’ve got over four million driver-partners all over the world which is a huge number. It is unparalleled. But we want Uber to be available to everybody. What we are doing now is going into the next step of introducing other transportation choices to Uber. We’ve always gone with pool, but for example, we are testing busses in Cairo now to even bring the price of Uber down to the next level, a dollar or a buck fifty, etc. 

The Rideshare Business Itself Is Turning Quite Profitable

We are introducing bikes and scooters for personal electric mobility. Essentially, anyway that you want to get around your city we are going to be there for you. It will be mostly Uber goods but we will also have other third parties such as transit, such as one of our partners Lime as well. Any way that you want to get around we want Uber to be there. And if you want food, if you want even local commerce which I think we will power or even Uber Eats or some of our other services will be there for you as well.

If you look at our rideshare business, it covered our overhead less than about $ 100 million. The rideshare business itself is turning quite profitable. We believe that the profits in the rideshare business are not only going to grow top-line but we believe we are going to grow the bottom-line as well. Then there are other businesses, Eats, autonomous, freight, etc. These are extraordinary opportunities that we are funding. I do believe that we are going to prove to our investors that we can take on a serial basis big parts of our business, turn them profitable, and use those parts of our business to fund investments in other areas. 

Our Formula To Profitability

I’m very confident that Uber can be profitable. I think the losses that we reported, it was a $ 5 billion loss from an accounting perspective. If you live in an accounting world that’s a big loss. I live in the real world. Actually, in the real world or EBITDA losses of $ 656 million were lower than Q1 and were on a good path in terms of our EBITDA losses as well. None of this is going to be easy. All of this is going to take great execution from all of our teams, marketing, technology, etc. We are going to be demanding our employees to be doing even more with less and to execute incredibly effectively in order for us to grow the top-line and the bottom-line as well. 

Scale (is the primary driver toward profitability). It’s getting big. We’ve got over a billion rides per quarter and we’ve got trips growing at 35 percent on a year on year basis. We think we can use technology to be much more efficient. For example, instead of you now having to email a call center agent or call a call center agent if you have issues, you can just do it in the app. These are technology innovations that allow customers to have a better experience and at the same time they bring down costs. It’s a combination of growing top-line over 35 percent, technology innovation to delight the customer and take costs down at the same time, and then good old fashioned efficiency, making sure that our corporate costs don’t grow as fast as our revenue. All of those together give you a formula to get to profitability.

Uber CEO Dara Khosrowshahi: Our Formula To Profitability

The post Uber CEO Reveals Formula To Profitability appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Uber CEO: We Expect This Business To Be Very Profitable

“Not only do we expect to hit cashflow break-even, but we expect this business to be very profitable at maturity,” says Uber CEO Dara Khosrowshahi. “I think that going forward our spending declines as a percent of revenue. So when you’re growing trips 35 percent year on year your spending is going to increase. But we’re going to get leverage on the marketing line and we’re definitely going to get fixed cost leverage going forward.”

Dara Khosrowshahi, CEO of Uber, discusses the company’s latest quarterly results and predicts that Uber will ultimately be very profitable in an interview on CNBC:

Uber Is Much More Than a Rideshare Company Now

The IPO for us is a once in a lifetime moment. It was a really important moment for the company. Some of what we did like the driver appreciation award, almost $ 300 million that we put in the hands of over a million drivers globally were really important for us to do. It created a messy P&L from an accounting standpoint. I think it is hiding underlying trends that are actually very healthy for the company. If you look at trends for the company which is going to matter long-term, you have got gross bookings over $ 16 billion growing 37 percent on a year on year basis. You’ve got trip volume, and trips are units, growing 35 percent year on year. You’ve got audience, monthly active platform customers, now over 100 million, growing 30 percent. The actual revenue growth excluding the driver appreciation award was up 26 percent. 

What I did tell our investors is to expect that to accelerate into the back half of the year. The back half of the year you are going to see if trends stay the same, revenue growth in excess of 30 percent. When you look at profitability, we beat our own internal targets and we beat Street targets as well. We came in at a loss of $ 656 million. It’s still a big loss but the losses are improving and the take rates are improving. If you back out some of those one-time expenses, we went from a loss of $ 800 million to a loss of $ 656 million. We got much more efficient on the marketing front. We actually took marketing as a percentage down while we were still growing the top line over 30 percent as well. This is much more than a rideshare company now, it’s a transportation company. 

We Expect This Business To Be Very Profitable At Maturity

We are in a situation as far as the network effect of the company where we don’t need to increase the marketing and incentives. We can go in with loyalty plans both for riders and drivers that are going to add to leverage and ultimately profitability of the company. This is a marketplace company that has over 20 percent revenue margins and revenue margins are increasing year on year. Not only do we expect to hit cashflow break-even, but we expect this business to be very profitable at maturity. 

I think that going forward our spending declines as a percent of revenue. So when you’re growing trips 35 percent year on year your spending is going to increase. But we’re going to get leverage on the marketing line and we’re definitely going to get fixed cost leverage going forward. I think that this quarter proved that out and we have to keep hitting our marks in the next couple of quarters. It’s a super-competitive marketplace but we are confident. We like what we saw operationally this quarter.

Uber CEO Dara Khosrowshahi: We Expect This Business To Be Very Profitable at Maturity

The post Uber CEO: We Expect This Business To Be Very Profitable appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Virtual Restaurants Helping Power Uber Eats Growth

“Virtual restaurants is a very interesting initiative,” says Uber Eats EMEA head Rodrigo Arevalo. “Basically by leveraging the data on our platform, we can partner with other restaurants in order to cuisine types that only exist on food delivery platforms. If there is not a restaurant in a certain neighborhood we will partner with restaurants to make that happen. In the UK we are already doing 200 virtual restaurants and we are expanding throughout Europe, the Middle East, and Africa.”

Rodrigo Arevalo, head of EMEA at Uber Eats, discusses how virtual restaurants are helping power Uber Eats Growth in an interview on Bloomberg:

Virtual Restaurants Helping Power Uber Eats Growth

Virtual restaurants is a very interesting initiative. Basically, by leveraging the data on our platform we can partner with other restaurants in order to cuisine types that only exist on food delivery platforms. That has two benefits. The first one is that it helps restaurants utilize their kitchens a lot more. The second one is that it increases their revenue on their top line. It’s a very interesting initiative to provide more choice and to increase business for restaurants. 

If there is not a restaurant in a certain neighborhood we will partner with restaurants to make that happen. In the UK we are already doing 200 virtual restaurants and we are expanding throughout Europe, the Middle East, and Africa. It’s a type of local exercise that we are trying to tack on. It’s going really well and we’re excited about that.

Uber East Demonstrates the Potential of Uber’s Logistics Platform

Uber Eats fits into Uber’s overall strategy and portfolio in the way that it demonstrates the potential of Uber’s logistics platform. Just in three and a half years, we’ve been able to build a multi-billion dollar business and today we are already the biggest food delivery app outside of China. It’s all about the logistics network that we have built and how we can leverage the potential of that platform. 

It’s about focus for us. We want to make sure that we deliver on the plan, deliver on the vision that (Uber CEO) Dara Khosrowshahi has set for the company. Focus is basically three pillars for Uber Eats. The first one is restaurant selection, providing consumers choice. The second one is customer experience for eaters, for restaurants, and for delivery partners. The third one is underpinning that with great technology and a great product that people would love to use every single day. 

Uber Eats Partners With 220,000 Restaurants Globally

We partner today with 220,000 restaurants globally and there is a vast variety of selection from every kind of meal that you would like; comfort food to the healthiest options such as vegan, salads, etc. We believe selection. We believe in consumer choice. We want to make sure that we provide all of those options to them. We very much focus on providing that information, providing those options, and making sure that consumers make an informed choice.

When it comes to packaging we already partner with several companies that provide sustainable packaging. Given our platform, particularly in the UK, we already look for ways to facilitate sustainable packaging for restaurant partners, making sure we do our part in that sense.

Virtual Restaurants Helping Power Uber Eats Growth – Uber Eats EMEA head Rodrigo Arevalo

The post Virtual Restaurants Helping Power Uber Eats Growth appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Waymo Streamlines Case Against Uber by Dropping 3 Patent Claims

The battle between Waymo’s Alphabet and Uber is far from over, despite the former dropping three out of their four patent claims. In their defense, Waymo is saying that they are dropping the claims because it has been agreed upon that Uber will be abandoning the use of LiDAR, the autonomous driving technology in question.

In a statement, Uber has clarified that they are no longer using the technology and have no plans of using it in the near future, Waymo, however, is reserving their right to refile any of the dropped claims if necessary.

Waymo, Google’s self-driving project that now runs under its own business patent Alphabet,  stands by their decision of dropping three out of the four patent infringements in order to streamline their defense and strengthen their case.

The heated court battle stems from the alleged theft of over 14,000 files by then Uber employee Anthony Levandowski shortly after leaving Waymo. Levandowski supposedly used the information he obtained to build his own autonomous trucking company, Otto, which was later purchased by Uber for $ 680,000,000 in stock.

Uber is firm in saying that they had no prior knowledge that the data on which Otto was based was stolen from the Waymo server. Levandowski may face criminal charges for the alleged theft of data but has refused to testify, invoking his right against self-incrimination.

Without Levandowski’s testimony, it may seem like Uber is at a loss for defense, but the company remains confident that the cases filed against them lacks evidence and that the claims are not rooted in facts.

Waymo insists that the focus of the lawsuit does not solely rely on the patent infringement but rather the trade secrets which then Waymo engineer Levandowski stole from their server.

Despite recommendations by Judge William Alsup to drop the entire case, Waymo is persistent in pursuing the claims they made against Uber. The trial date is scheduled in October of this year.

The post Waymo Streamlines Case Against Uber by Dropping 3 Patent Claims appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Former Google search chief Amit Singhal joins Uber

Singhal will become a senior vice president of engineering, overseeing Uber’s Maps & Marketplace departments.

The post Former Google search chief Amit Singhal joins Uber appeared first on Search Engine Land.



Please visit Search Engine Land for the full article.


Search Engine Land: News & Info About SEO, PPC, SEM, Search Engines & Search Marketing

Posted in IM NewsComments Off

SearchCap: Amit Singhal joins Uber, Google AMP carousels & more

Below is what happened in search today, as reported on Search Engine Land and from other places across the web.

The post SearchCap: Amit Singhal joins Uber, Google AMP carousels & more appeared first on Search Engine Land.



Please visit Search Engine Land for the full article.


Search Engine Land: News & Info About SEO, PPC, SEM, Search Engines & Search Marketing

Posted in IM NewsComments Off

Uber Now Profitable In Hundreds Of Cities Globally, But Spending It All On China

The CEO of Uber, Travis Kalanick, told The Financial Times that Uber is profitable except for its investments in China and other new markets. Uber is in a fierce battle for market share as the number two ride sharing service in China behind Chinese company Didi Chuxing. China is now Uber’s biggest market in the world when measured by number of rides and amazingly accounts for a third of its business worldwide.

“We have hundreds of cities that are profitable globally,” Kalanick said. “That allows us to invest in new places, and to sustainably invest in a very expensive place like China.” Uber had first-mover advantage in China but was quickly followed by Chinese company Didi Chuxing which was flush with investment capital and has now moved into over 400 cities, while Uber has only launched in 60 plus cities, but that is changing fast. Uber lost over $ 1 billion last year in China and may lose even more this year in order to launch in new cities and gain market share.

China has 16 cities with metropolitan populations of over 10 million making market launches challenging and expensive. By comparison, the largest city in the United States, New York City, has a population of (only) 8.2 million. “We are number two in China, which means that we still have a ways to go,” Kalanick said. “But we are putting everything on the field.” According to FT, Uber’s CEO spent nearly one in five days in China. “Travis was personally invested in the success of Uber in China to a much greater degree than any other country,” noted Allen Penn, head of Asia operations at Uber.

China was always thought of as a huge challenge for Uber, but with potentially huge rewards. “We like to go after the thing that seems impossible,” Kalanick told San Francisco based FT writer Leslie Hook. “It was pretty far-flung for us to try at that time – but that was also what made it exciting.”

In order to combat difficult Chinese regulations targeting foreign owned businesses the company launched in China different than other Silicon Valley heavyweights like Google and Facebook, they created a separate company called Uber China and brought in Chinese investors. This has allowed Uber to do business in China without being hampered by unfair Chinese regulations that favor Chinese based businesses.

That’s the good news. The bad news is that Uber competitor Didi Chuxing is dominating the market and out-competing Uber and has launched in many more markets. In 2015 it arranged 1.4 billion ride shares, more than Uber has done worldwide in its history. Last year it arranged 1.4 billion rides in China, more than Uber has done worldwide in its history.

The post Uber Now Profitable In Hundreds Of Cities Globally, But Spending It All On China appeared first on WebProNews.


WebProNews

Posted in IM NewsComments Off

Harry Campbell: Blogging About The Rise Of Ride Sharing (Uber, Lyft) To Make $80,000+ A Year From 10 Different Income Streams

[ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] People often ask me if blogging is too ‘old’ to make money from if you are just starting out today, and has it been replaced by social media or podcasting, or youtube …etc. My response to that…

The post Harry Campbell: Blogging About The Rise Of Ride Sharing (Uber, Lyft) To Make $ 80,000+ A Year From 10 Different Income Streams appeared first on Entrepreneurs-Journey.com.

Entrepreneurs-Journey.com by Yaro Starak

Posted in IM NewsComments Off

SearchCap: Google Map Maker Suspended, Uber & Nokia HERE & Mom’s Day

Below is what happened in search today, as reported on Search Engine Land and from other places across the web.

The post SearchCap: Google Map Maker Suspended, Uber & Nokia HERE & Mom’s Day appeared first on Search Engine Land.



Please visit Search Engine Land for the full article.


Search Engine Land: News & Info About SEO, PPC, SEM, Search Engines & Search Marketing

Posted in IM NewsComments Off

Google Redesigns Maps, Adds OpenTable Reservations, Uber Estimates

Google continues to evolve its Maps for mobile. It has gone well beyond the rudimentary local search and navigation product it once was and become an increasingly sophisticated local discovery tool with an array of content types and improved functionality. Now Google has made Maps more…



Please visit Search Engine Land for the full article.


Search Engine Land: News & Info About SEO, PPC, SEM, Search Engines & Search Marketing

Posted in IM NewsComments Off


Advert