Photo: cnn.com
In an op-ed published this summer, Forbes declared that Uber would never be a profitable business until they addressed the many issues making their business model highly flawed. CEO Dara Khosrowshahi would beg to differ.
Khosrowshahi sat down for a chat with CNN correspondent Christiane Amanpour and discussed, among other things, his belief in a future in which Uber could actually turn a profit. Today’s reality is that, despite its massive size and long presence on the market, the ride-share company is yet to turn a profit. It anything, it’s bleeding billions.
More specifically, in 3 months this summer, Uber registered a $5.2 billion loss, CNN points out. In this context, could it ever become a company that’s profitable? Yes, but it will take time, Khosrowshahi believes. Khosrowshahi recently took over from ex-CEO Travis Kalanick, securing investment after taking the company public.
This did not turn the tide for Uber, but it did give it a lifeline until it solved other, more pressing issues. Khosrowshahi says taking a company as large as this one from the phase of investment to that of profit will take some time, but he is absolutely convinced the day will come when Uber will be actually making money.
“The model is absolutely sustainable,” Khosrowshahi says. "The business, for example, is still growing 30-plus percent on a global basis. And anytime you have a business that has the kind of market size of trillions of dollars in terms of transportation and food and global commerce, it makes sense for a company to invest.”
In the same interview, Khosrowshahi offers a mea culpa for the way Uber grew into a company that defied law and put attaining power over every other consideration, though he does note that he wasn’t CEO at the time. Uber needs to be working with authorities and needs to obey the law, he adds – and that’s a lesson they learned the hard way.
More specifically, in 3 months this summer, Uber registered a $5.2 billion loss, CNN points out. In this context, could it ever become a company that’s profitable? Yes, but it will take time, Khosrowshahi believes. Khosrowshahi recently took over from ex-CEO Travis Kalanick, securing investment after taking the company public.
This did not turn the tide for Uber, but it did give it a lifeline until it solved other, more pressing issues. Khosrowshahi says taking a company as large as this one from the phase of investment to that of profit will take some time, but he is absolutely convinced the day will come when Uber will be actually making money.
“The model is absolutely sustainable,” Khosrowshahi says. "The business, for example, is still growing 30-plus percent on a global basis. And anytime you have a business that has the kind of market size of trillions of dollars in terms of transportation and food and global commerce, it makes sense for a company to invest.”
In the same interview, Khosrowshahi offers a mea culpa for the way Uber grew into a company that defied law and put attaining power over every other consideration, though he does note that he wasn’t CEO at the time. Uber needs to be working with authorities and needs to obey the law, he adds – and that’s a lesson they learned the hard way.
Google News