An early Uber investor and strategist says the company has lost its mojo.
Bradley Tusk of Tusk Ventures told CNBC that some of the fierce innovative spirit departed Uber with its founder Travis Kalanick.
There’s a lot of work to be done for Uber to be profitable, he said, but Lyft might be even more risky.
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Uber has transitioned from nimble startup, to a global and publicly traded company — and in doing so, the ride-hailing giant has lost some of what made it special, according to an early investor and adviser.
“They’ve lost their mojo,” Bradley Tusk, the company’s first political strategist who invested in the company in 2011, told CNBC on Monday, as shares of the company plunged to a record low price. “I understand why they made that change, but clearly there’s not a lot of confidence int he leadership.”
Read more: Uber confirms a hiring freeze in the US and Canada as the ride-hailing giant ramps up cost-cutting efforts
CEO Dara Khosrowshahi told analysts on a conference call following the company’s second-quarter earnings report — in which it posted a massive $5.2 billion loss — that the company was continuing to innovate to become profitable, especially in shared rides.
“The big picture is we want to be there any way you want to get around your city and I think we’re well on a path to do so in a profitable way,” the former Expedia executive who joined Uber in 2017, said.
Tusk seems to agree with him on that aspect, but said there’s still plenty of work to be done.
“I now understand why they wanted to stay private for so long,” he said. “Fundamentally, for the company to be profitable, it can’t just be Uber Eats, …read more
Source:: Business Insider