Era of growth at all costs is over

The cab hailing company uber on Thursday announced a new market strategy they want to pursue ,the CEO Dara Khosrowshahi said the company is well positioned in the market by their continuous innovation.the company lost$8.5 billion last year

Uber has concentrated on rapid growth in the world and this has led to huge losses,uber lost $1 billion or more in each quarter of the year since it went public in may 2019 and thus uber is struggling to convince investors who are highly concerned with the company’s history of huge losses .

Bet on eats delivery

uber eats business continues to be a costly venture.eats saw a revenue growth of 68% to $734 million,wit losses of $461 million. yesterday the San Francisco based company announced they sold their food delivery business in India to a popular food app Zomato ,although the company’s CEO termed this as a ‘strategic move’ critics view this as a desperate act so that the company can register a profit gain in this quarter.

unending woes

The business continues to face numerous challenges which could make the business bleed money if no urgent solution is found. these legal issues include; labour law suits as workforce drivers are not considered employees.In 2017 London one of its largest market suspended its license because of the cab business failing to report crimes and not conducting background checks on drivers. in Africa the cab hailing business is fast growing in countries like Kenya,Nigeria and south Africa but the company has been affected by the constant driver strikes as they seek to block the company’s lowered fares rates.In Nairobi uber faces stiff competition from Taxify and little cab owned by safaricom. The firm is also struggling to comply with California’s new gig work law but despite this the CEO remains hopeful and challenged his employees to move the timeline for profitability up to the fourth quarter of 2020.