A Uber Uber Inc. has been taking several steps to make the ride-sharing and delivery company (finally) profitable. Dara Khosrowshahi, who took over as Uber's CEO in 2017, said the company will be back in the red by the end of the year. After posting a loss year after year, Uber must “achieve a measure of adjusted profitability (earnings before interest, taxes, depreciation and amortization)” by the end of 2021, according to the Business Insider.

The problem is that in order to reach this point, the ones who ended up being penalized were the drivers and delivery people of the app. In the early years, Uber offered lower prices, discounts and bonuses to users and drivers. Now that the company has solidified itself in several markets, they are raising prices and decreasing the percentage that goes to drivers and delivery people. “The era of growth at any cost is over,” Uber’s CEO said in a statement. last year.

Exit from problematic markets and staff reduction

Another step Uber has taken is to exit markets where the company has failed to become a leader in ride-sharing or food delivery. Uber has exited Egypt and Southeast Asia, as well as sell Uber Eats in India, since that branch of the company was making a loss there. The company also got rid of its rental bicycle and scooter business, as well as its air taxi project.

Also aiming to make a profit and attract investors, Uber laid off more than 20% of its employees over the past two years. As Khosrowshahi said in 2020: “In a world where investors increasingly demand not just growth, but profitable growth, Uber is well positioned to win through continued innovation, excellent execution, and the unmatched scale of our global platform.” And a certain exploitation of its workforce, I would add.

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