Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber CEO: 'We are very, very, very different from WeWork'

Uber CEO: 'We are very, very, very different from WeWork'

Uber CEO Dara Khosrowshahi defends the company’s business at The New York Times’ DealBook Conference on Wednesday. Khosrowshahi says Uber’s core ride-hailing business should shield it from experiencing a fate like WeWork’s. The stock has been under pressure recently as Uber’s post-IPO lockup is set to expire and it reported more than $1 billion in net losses during the third quarter.

Uber CEO Dara Khosrowshahi defended the ride-hailing company’s business Wednesday as its stock continues to tumble and it faces growing investor skepticism around its massive losses.

On stage at The New York Times DealBook conference, interviewer Andrew Ross Sorkin asked Khosrowshahi if he was happy the company had gone public in time to avoid a situation like WeWork’s. The embattled workspace company was once expected to stage one of the hottest initial public offerings of the year, but investors balked at its huge losses and unusual business structure. The company ultimately postponed its IPO and had to be bailed out by major investor SoftBank.

“We are very, very, very different from WeWork,” Khosrowshahi said. “Fundamentally the rideshare market is of scale, is global, is an attractive business, and it’s only going to get better in a competitive market.”

In fact, the companies share a number of similarities: Both count SoftBank as their largest investor, received early venture infusions from Benchmark Capital and show operating losses of more than $1 billion per year. Earlier on Tuesday, SoftBank, the Japanese conglomerate headed by Masayoshi Son, reported quarterly losses of $6.5 billion, driven in large part by writedowns on its Vision Fund’s investments in both companies.

On stage, Khosrowshahi acknowledged that Uber has felt the effects of a reckoning among public and private investors, wherein the “appetite for the unknown and high risk has gone down.” But he said it has “forced Uber to perform better,” as evidenced by the company’s announcement that it expects to turn an EBITDA profit in 2021, as well as an increasingly rational ride-hailing market.

He added that the core ride-hailing business essentially functions as Uber’s version of Amazon Web Services, which has become a major profit engine for Amazon, and should help Uber achieve profitability.

Khosrowshahi’s comments come as Uber’s IPO lockup agreement is set to expire on Wednesday. The event is the first time since Uber’s IPO in May that insiders can sell the stock, and analysts have warned it could put near-term pressure on the shares.

Earlier this week, Uber reported third-quarter earnings that sent the stock down nearly 10%. In its results, the company posted over $1 billion net losses for the quarter. On a call with analysts, executives dangled an attractive EBITDA profitability target for full year 2021, but many analysts continued to ask skeptical questions to probe for more details.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×