You are here: Home » Companies » News
Business Standard

Uber to reinvest profits in tech for emerging markets like India, says CEO

The improvement of the company's financial performance comes after months of controversies, including allegations of sexual harassment and lawsuits from drivers and employees

Press Trust of India  |  New Delhi 

Dara Khosrowshahi
Uber CEO Dara Khosrowshahi at a Press Conference in New Delhi

Cab-hailing firm will re-invest profits in its products and technology, emerging markets like and to scale up its Eats and JUMP businesses globally, its Dara said.

In an email to employees, said the company's core has continued to perform very well and the number of trips on the platform grew 43 per cent, while bookings grew 55 per cent to $ 11.3 billion compared to last year.

Uber's net revenue grew 67 per cent to $2.5 billion, while it cut losses to half compared to a year ago, he said.

"We are deliberately reinvesting our profits. Even with these impressive results, we're not going to let up on the gas. We expect to reinvest our profits back into our products and tech, emerging markets like the and India, as well as big bets like scaling Eats and JUMP globally," added.

Besides, the company said it would hold a secondary stock sale for employees and existing investors.

"...a new third-party tender offer led by Coatue, TPG, and will launch next week. Eligible employees will be able to sell shares to these investors at $40 per share, which implies a valuation of approximately $62 billion," he said.

The improvement of the company's financial performance comes after months of controversies, including allegations of sexual harassment and lawsuits from drivers and employees.

Khosrowshahi, who took over the reins of in August last year replacing founder and former Travis Kalanick, has been focussing on turning around the company and has taken multiple steps in that direction.

In India, the company is locked in an intense battle for market leadership with Interestingly, Uber and have Japanese conglomerate as a common investor.

Khosrowshahi has said the company is committed to investing further in the Indian market but is also keeping a sharp eye on "eventual profitability" as the US-based cab aggregator ramps up operations in the country.

is already among the top three markets (besides the US and Latin America) for Uber. The company has been pumping in substantial funds to fuel its growth in

In 2015, Uber announced an investment of $1 billion in the country to expand its services. It has also set up a response and support centre in with an investment of $50 million.

First Published: Thu, May 24 2018. 21:57 IST
RECOMMENDED FOR YOU