Uber has customers all around the world all around the clock. Uber has been many people’s savior in disguise, whether it be an exit from an awkward situation or an end to a fun night. The company has grown exponentially, offering basic options such as UberX, options for those looking to save some money such as UberPool or those who want a luxury option such as UberBlack.
Despite their rise in customers, a 28 percent increase to 1.9 billion users from 2018, and increase in revenue, an increase of 27 percent to more than 3 billion dollars, Uber’s recent financial report reported a loss of 1.1 billion dollars. This loss is more than the 887 million dollars Uber lost a year earlier.
Uber still has been working on many expansion programs and using discounted programs to help them do so. Uber plans on cutting down their discounts and coupons that they used to originally promote the company. Furthermore, Dara Khosrowshahi, Uber’s chief executive, had to displace 1000 employees and pull their UberEats app from South Korea. Uber also has run into multiple court issues, such as the one we discussed in class earlier about Uber having to buy insurance for their drivers and others such as California possibly forcing Uber to make their free-lancers “employees” which would mean a lot of money that goes into minimum wage and employee benefits.
Hopefully, by cutting down on these programs and such, Uber will reach their goal of finally making a profit by the final quarter of 2020.
This issue relates to businesses and their work with stakeholders. Since Uber has to listen to their stakeholders (government and public), they comply with laws and roll out with new programs and discounts. They, at the same time, are disappointing their shareholders because of their inability to make money. This also relates to globalization because Uber has rolled out to many countries, with different options in different areas such as the UberCopter in Dubai.
Original Story “Uber Posts Faster Growth, but Loses $1.1 Billion.” Conger, Kate. The New York Times. The New York Times, February 6, 2020.