Uber executives said they are targeting 'total company EBITDA profitability for the full year 2021.'
but analysts were skeptical and pressed for more details, which Uber did not provide. Investors apparently share the skepticism, sending the stock down 9.9% on Tuesday.
Morgan Stanley analyst Brian Nowak asked the executives to share the "biggest sources of leverage" they see in reaching the new target. Chai did not answer the question directly but instead said that Uber's corporate overhead would grow more slowly than it has in the past, and that "insurance costs and costs like that" would become a smaller percentage of costs. At the same time, he acknowledged the challenge, saying, "We don't think there's a big magic bullet. We're just continuing to grind it out quarter over quarter.
Khosrowshahi said, "In terms of our forecast going forward, we think that increasing customer engagement, deepening loyalty, and being more efficient in terms of customer acquisition costs and segmentations absolutely are a part of the path to profitability," Khosrowshahi said.After several questions on profitability, one analyst acknowledged the repeated questioning.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Uber CEO Dara Khosrowshahi predicts profitability by 2021Uber continues to burn through cash, but CEO Dara Khosrowshahi said the company could become profitable by 2021.
Read more »
Uber Loses $1.1 Billion, Targets Profitability In 2021Uber's business is growing, but it's still a money-losing machine (at least until 2021).
Read more »
Breakingviews TV: Uber underThe ride-hailing firm’s $3.5 bln quarterly revenue is growing briskly – yet so are its accounting quirks and food-delivery losses. Meanwhile a slab of insider shares are about to be released from their lockup. It’s not a good moment to be an Uber...
Read more »
Uber Q3 earnings preview: Analyst commentary leading up to report - Business InsiderAfter Lyft's rosy results, Wall Street is expecting that Uber will show a similarly strong quarter as the competitive landscape cools down.
Read more »
Uber test vehicles involved in 37 crashes before fatal self-driving incidentUber Technologies Inc's autonomous test vehicles were involved in 37 crashe...
Read more »
After a chaotic first week, LAX will expand Uber, Lyft and taxi pickup lotFollowing days of complaints over long lines and long waits, Los Angeles International Airport will significantly expand the new pickup lot for Uber, Lyft and taxis, officials said Monday.
Read more »