Saudi Press

Saudi Arabia and the world
Saturday, Feb 22, 2025

Uber CEO: 'We are very, very, very different from WeWork'

Uber CEO: 'We are very, very, very different from WeWork'

Uber CEO Dara Khosrowshahi defends the company’s business at The New York Times’ DealBook Conference on Wednesday. Khosrowshahi says Uber’s core ride-hailing business should shield it from experiencing a fate like WeWork’s. The stock has been under pressure recently as Uber’s post-IPO lockup is set to expire and it reported more than $1 billion in net losses during the third quarter.

Uber CEO Dara Khosrowshahi defended the ride-hailing company’s business Wednesday as its stock continues to tumble and it faces growing investor skepticism around its massive losses.

On stage at The New York Times DealBook conference, interviewer Andrew Ross Sorkin asked Khosrowshahi if he was happy the company had gone public in time to avoid a situation like WeWork’s. The embattled workspace company was once expected to stage one of the hottest initial public offerings of the year, but investors balked at its huge losses and unusual business structure. The company ultimately postponed its IPO and had to be bailed out by major investor SoftBank.

“We are very, very, very different from WeWork,” Khosrowshahi said. “Fundamentally the rideshare market is of scale, is global, is an attractive business, and it’s only going to get better in a competitive market.”

In fact, the companies share a number of similarities: Both count SoftBank as their largest investor, received early venture infusions from Benchmark Capital and show operating losses of more than $1 billion per year. Earlier on Tuesday, SoftBank, the Japanese conglomerate headed by Masayoshi Son, reported quarterly losses of $6.5 billion, driven in large part by writedowns on its Vision Fund’s investments in both companies.

On stage, Khosrowshahi acknowledged that Uber has felt the effects of a reckoning among public and private investors, wherein the “appetite for the unknown and high risk has gone down.” But he said it has “forced Uber to perform better,” as evidenced by the company’s announcement that it expects to turn an EBITDA profit in 2021, as well as an increasingly rational ride-hailing market.

He added that the core ride-hailing business essentially functions as Uber’s version of Amazon Web Services, which has become a major profit engine for Amazon, and should help Uber achieve profitability.

Khosrowshahi’s comments come as Uber’s IPO lockup agreement is set to expire on Wednesday. The event is the first time since Uber’s IPO in May that insiders can sell the stock, and analysts have warned it could put near-term pressure on the shares.

Earlier this week, Uber reported third-quarter earnings that sent the stock down nearly 10%. In its results, the company posted over $1 billion net losses for the quarter. On a call with analysts, executives dangled an attractive EBITDA profitability target for full year 2021, but many analysts continued to ask skeptical questions to probe for more details.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Arabia and the United States Strengthen Ties Amid Global Developments
Saudi Arabia Hosts Global Conference to Promote Islamic Unity
The Impact of Artificial Intelligence on Education and Child Development
Saudi Arabia Announces Competition for Best Founding Day Outfits
Saudi-EU Food Security Officials Hold Talks to Strengthen Collaboration
Putin Expresses Gratitude to Saudi Crown Prince for Hosting US-Russia Talks
UK and Saudi Arabia Enhance Collaboration in Innovation and Technology
Denmark's Embassy in Riyadh Showcases Danish Cuisine with Saudi Influence
Saudi Artist Salman Al-Amir Unveils 'Tafawut' Exhibition in Riyadh
Saudi Arabia Offers Condolences to Kuwait Following Military Exercise Fatalities
Saudi Ministry of Islamic Affairs Completes Ramadan Preparations in Madinah
Etidal Secretary-General Hosts UN Counter-Terrorism Director in Riyadh
ADNOC Drilling Targets Over $1 Billion in Investments for 2025 Amid Gulf Expansion Plans
Derayah Financial Achieves Remarkable Growth in Saudi Brokerage and Asset Management
Saudi Arabia Shortlists 30 Firms for Mining Licenses in Eastern Province and Tabuk
Saudi Foreign Minister Engages Counterparts at G20 Meeting in Johannesburg
Oil Prices Decline Amid Rising US Inventories
Saudi Arabia's NDMC Plans Green Bond Issuance by 2025
Moody’s Affirms Egypt’s Caa1 Rating Amid Positive Economic Outlook
Oman and Saudi Arabia Strengthen Economic Ties with New Agreements
Saudi Arabia Investments Propel Expansion of Qurayyah Power Plant
Saudi Capital Market Authority Advances SPACs and Direct Listings
Global Energy Leaders Gather in Riyadh for Symposium on Energy Outlooks
Al-Ahsa Region Sees 500% Growth in Tourism as Saudi Arabia Prioritizes Development
Saudi Arabia Advances Entrepreneurial Ecosystem in Al-Ahsa with New Agreement
King Salman Approves Official Saudi Riyal Symbol
Saudi Credit Card Lending Reaches $8.4 Billion Amid Digital Payment Expansion
King Salman Approves Official Symbol for Saudi Riyal
Putin Thanks Saudi Crown Prince for Facilitating U.S.-Russia Discussions
Saudi Foreign Minister Attends G20 Meeting in Johannesburg
Saudi Arabia Prepares for Nationwide Founding Day Celebrations
Inauguration of Hira Park and Walkway Enhances Jeddah's Urban Landscape
Crown Prince Hosts Leaders for Informal Meeting in Riyadh Amid Gaza Rebuilding Plans
Saudi Official Highlights Achievements and Media's Role in National Transformation
Three Expatriate Women Arrested for Prostitution in Riyadh
Saudi Arabia's Diplomatic Evolution Highlighted at Saudi Media Forum
Healthy Eating and Preparation Essential for Ramadan Fasting
Saudi Arabia and Japan Forge Sustainable Textile Partnership
Advanced Limb Surgery Restores Mobility in Pediatric Cancer Patient
Jeddah Event Explores AI's Role in Boosting Saudi Arabia's SME Sector
UN Representative Highlights AI's Role in Perpetuating Gender Stereotypes
Saudi and Jordanian Leaders Discuss Enhanced Security Cooperation in Amman
Saudi British Society Honors Cultural Bridge-Builders at London Gala
Saudi Media Forum 2025 Explores AI's Role in Modern Journalism
Saudi Arabia's Saqer Al-Moqbel Appointed as WTO General Council President for 2025–2026
Saudi Deputy Ministers Engage in Diplomatic Discussions with U.S. and Dutch Officials in Riyadh
Saudi Arabia to Launch Iftar Program in 61 Countries During Ramadan
Saudi Visitors Expected to Spend £942 Million in UK During 2025
Saudi Arabia Gifts Kaaba's Kiswah to Uzbekistan's Center of Islamic Civilization
Digital Cooperation Organization Concludes Fourth General Assembly with Multiple Agreements
×