Uber CEO: “There are a lot of issues with Uber’s business model”
Uber CEO Travis Kalanick said he’s seen “a lot of good things” from the ride-hailing giant’s business models but said there are “a whole lot of things that are wrong with the business model.”
“There’s a lot that we don’t understand, and that’s why we’ve invested in new ways,” Kalanik told Axios.
“We’re investing in new processes, and we’re investing, you know, in new technology.”
Kalaniski was responding to a question about Uber’s financials for the first half of the year.
Kalanic says Uber’s revenues were up nearly 10 percent in the quarter, and he expects to see similar increases for the second half.
Uber’s stock is down about 1 percent this week, and it was down about 10 percent this morning.
Kalinik did not provide specifics about what Uber was working on to fix.
He said that Uber will be spending $1 billion over the next few years to make it more efficient and more efficient.
Uber has struggled to get the business of Uber-branded vehicles out of the hands of consumers, and drivers have had to fight the ride sharing company to make money.
Kalianick told Axio that the company is still focused on making Uber’s drivers more profitable, but he did not specify how.
Uber is in the midst of a reorganization that could bring in new leadership to the company.
Kalalas recent hires include Uber CEO Kalanitakis former co-founder and co-chief product officer Anthony Levandowski and cofounder and CEO Jony Ive.
Kalalanick also recently joined forces with Uber investor Peter Thiel, who has reportedly invested more than $500 million in the company over the last few years.
Kalik said the company would soon be launching a “significant expansion of the network” that will bring more of its drivers and customers closer together.