Uber Has Lost “founder mentality” And Its Billion Dollar Losses Have Investors Looking Sideways
After posting a $5.2 billion loss in its latest quarterly results, Uber’s possibility of achieving profitability is almost null. In fact, investors are growing more skeptical after earnings for the second time since becoming public registered $3.16 billion in losses of over 5Billion.
Although not fully to blame, new businesses Uber Eats, Uber Freight, and Uber’s e-bike have stretched the company’s resources as they are the youngest entrants in the franchise. After Travis Kalanick ousting as CEO, Uber’s drama among leaders in the company and investors has been on an all-time high.
From sexual harassment, macho culture and the departure of senior executives; shareholders, investors, and leaders of the cab-hailing company were all in agreement that Travis Kalanick was Uber’s downfall. Ousting the CEO back in 2017 is now biting Uber Technology Inc in the ass as their “kinder and gentler” strategy in the innovation space continues to attract losses. Kalanick Co-Founded Uber in 2009 after which together with Garret Camp they build it into a global phenomenon.
In a recent revelation from Bradley Tusk, Uber’s first political strategist and investor, some of what Travis represented in innovation, change and intensity are lacking at the company now, and the stocks are a testimony. In his own words, the removal of Kalanick might have solved a lot of problems but might have started bigger problems as leadership wrangles in the firm remain dire.
New CEO, Dara Khosrowshahi has been blamed for not making Uber believable to the market resulting in many clients changing their preference.
Uber’s current team is deprived of the starters of the company and therefore the taxi-hailing franchise has been struggling to come up with innovative ideas and better still competition is stiff as the dynamic digital economy births smarter ideas. Some of the investors in the firm feel that Uber cannot eat off its current services but should further roll out an all-round business.
“They’ve to be that A-to-Z for transportation. Whether you’re getting yourself to A-to-B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck or a burrito from a messenger, they’ve got to be the default for all of that,” said Tusk
