Uber CEO Dara Khosrowshahi recently said that the company is going to be cutting costs after recent feedback from investors.
“The least efficient marketing and incentive spend will be pulled back,” Khosrowshahi said in an email to staff. “We will treat hiring as a privilege and be deliberate about when and where we add headcount. We will be even more hardcore about costs across the board.” I guess there aren’t going to be many more “should I eat this or not eat this” celebrity commercials.
They are going to need to be more efficient about cutting costs after reporting a net loss of $5.9 billion during the first quarter of 2022 on revenue of $6.9 billion. That’s a big hit.
Khosrowshahi said. “It’s clear that the market is experiencing a seismic shift and we need to react accordingly.” I don’t know if he is talking about the entrance of new competitors in the market or if they are just now realizing that delivery is kind of a low margin business and you shouldn’t spend so much on advertising.