Uber Technologies will go slow with its hiring of new employees as it aims to reduce expenditure on its marketing and incentive activities, CNBC news report said.
Uber reported net loss of $5.9 billion, which includes a $5.6 billion headwind (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized losses related to the revaluation of Uber’s Grab, Aurora, and Didi stakes.
Uber Technologies reported that its Gross Bookings grew 35 percent to $26.4 billion, with Mobility Gross Bookings of $10.7 billion (+58 percent) and Delivery Gross Bookings of $13.9 billion (+12 percent). Trips during the quarter grew 18 percent to 1.71 billion, or approximately 19 million trips per day on average.
Uber revenue grew 136 percent to $6.9 billion in Q1 2022, with growth outpacing gross bookings growth primarily due to the acquisition of Transplace by Freight, a change in the business model for our UK Mobility business.
Social media network Facebook-owner Meta Platforms said last week it would slow down the growth of its workforce.
Uber Technologies Chief Executive Officer Dara Khosrowshahi in a letter to its employees said Uber’s change in strategy was a necessary response to the “seismic shift” in investor sentiment, according to the CNBC report.
“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,” Dara Khosrowshahi said.
Uber said last week its driver base is at a post-pandemic high, and the company expects this to continue without significant incentive investments. Rival Lyft 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.
The ride hailing giant expects to generate meaningful positive cash flows for the full year, according to its latest earnings report.
Dara Khosrowshahi added in his letter that Uber’s food delivery and freight businesses need to grow faster.