Uber Technologies will slow down hiring and reduce expenditure on its marketing and incentive activities, according to a letter from Chief Executive Officer Dara Khosrowshahi.
According to the media reports, Khosrowshahi added in his letter that Uber’s food delivery and freight businesses need to grow faster.
The reports also added Khosrowshahi saying, “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.”
CEO Dara Khosrowshahi has told the staff that the company would slash costs due to a “seismic shift” in investor sentiment. The ride-hailing company becomes the latest to rein in costs to have a lean investment model.
This has come after Facebook-owner Meta Platforms Inc said last week it would slow down the growth of its workforce.
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 company will now focus on achieving profitability on a free cash flow basis, rather than adjusted earnings before interest, taxes, depreciation, and amortization
During the company’s annual shareholder meeting on Monday, Khosrowshahi addressed investors’ concerns.
“What we can do at Uber is to continue to execute in terms of top-line, bottom-line profitability,” CEO said.
Adding that the company’s results and guidance surpassed analyst expectations, “What we can do at Uber is to continue to execute in terms of the top line, bottom-line profitability. “We share your frustration.” CEO added.
According to its latest earnings report, the company expects to generate “meaningful positive cash flows” for the full year. With Reuters Inputs
