Uber Technologies Inc will scale back employing and diminish consumption on its marketing and incentive activities, CNBC covered Monday, citing to a letter from Chief Executive Officer Dara Khosrowshahi. The ride-hailing organization turns into the most recent to get control over expenses to have a lean investment model, after Facebook-proprietor Meta Platforms Inc said last week it would dial back the growth of its labor force. Khosrowshahi said Uber’s change in strategy was a necessary response to the “seismic shift” in investor sentiment, according to the CNBC report.
Uber said last week its driver base is at a post-pandemic high, and the company expects this to continue without significant incentive investments, a sharp contrast to rival Lyft Inc which has said it needs to spend more for labor.
“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.
The company will now focus on achieving profitability on a free cash flow basis, rather than adjusted earnings before interest, taxes, depreciation, and amortization, according to the CNBC report.
Khosrowshahi added in his letter that Uber’s food delivery and freight businesses need to grow faster, the CNBC report added.
The ride hailing giant expects to generate “meaningful positive cash flows” for the full year, according to its latest earnings report.
Uber did not immediately respond to a Reuters’ request for comment.
Check the latest news about business news section for best information.