Uber CEO says ‘Eats’ is now the firm’s core business which is already on the road to profitability

In a letter to “Team Uber”, CEO Dara Khosrowshahi has said the firm has made the decision to focus its resources on its core businesses, with Uber Eats leading the way.

The letter, which addressed the company’s latest round of job cuts totalling 3000, Khosrowshahi said that although the firm’s ‘ride’ business had made small progress since the COVID-19 virus caused worldwide lockdown, it was still trying to climb out of a “deep hole“, with “limited visibility” as to its speed and shape for the future.

Khosrowshahi continued to confirm the end of certain projects that they consider “no longer necessary“, such as the ‘Incubator’ and ‘Artificial Intelligence Labs’, but pulled focus onto Uber Eats, which he called a “silver lining” regarding the ongoing global crisis.

The CEO who joined Uber to replace former controversial Chief Executive and CO-founder Travis Kalanick, added that Uber Eats is “here to stay” and the company no longer needs to look for the next enormous growth opportunity.

But Khosrowshahi did add caution: “While Eats growth is accelerating, the business today doesn’t come close to covering our expenses."

In addition to the second wave of job cuts, which now total 6,700, Khosrowshahi confirmed that the company have also made the decision to close or consolidate around 45 office locations globally.

This latest round of job cuts may not be the last for the firm though, as Khosrowshahi concluded: “Having learned my own personal lesson about the unpredictability of the world from the punch-in-the-gut called COVID-19, I will not make any claims with absolute certainty regarding our future. I will tell you, however, that we are making really, really hard choices now, so that we can say our goodbyes, have as much clarity as we can, move forward, and start to build with confidence.”

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