Uber has said it will re-invest profits in its products and technology, emerging markets like India and scale up its Uber Eats and JUMP businesses globally.
The statements were made by Uber’s chief executive Dara Khosrowshahi in an email to company’s employees wherein he also said that the company’s core business 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 USD 11.3 billion compared to last year.
In the email he also mentioned increase in Uber’s net revenue by 67 per cent to USD 2.5 billion while losses were reduced by half year-on-year.
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 Altimeter Capital will launch next week. Eligible employees will be able to sell shares to these investors at USD 40 per share, which implies a valuation of approximately USD 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 Uber in August last year replacing founder and former CEO 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 homegrown player Ola. Interestingly, Uber and Ola have Japanese conglomerate SoftBank 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.
India 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 India. In 2015, Uber announced an investment of USD 1 billion in the country to expand its services. It has also set up a response and support centre in Hyderabad with an investment of USD 50 million.