Uber’s third-quarter revenue improved to $ 3.8 billion compared to $2.9 billion posted in a similar period in 2018.
The current performance beats analysts expectations, earning as $3.81 billion as compared to a predicted $ 3.69 billion.
Uber’s CEO Khosrowshahi hopes that the company is targeting adjusted EBITDA profitability by 2021.
“We know there is the expectation of profitability, and we expect to deliver for 2021,” Khosrowshahi said.
Uber Changes Strategies for Profitability
The company is looking to conduct various trade-offs to gain profitability. For instance, the company is looking to use technology to drive lower rates, as opposed to discounting.
Additionally, Uber will shift from discounts from shared rides to letting users save through waiting longer.
“The focus really is to drive lower rates based on the best technology out there rather than driving the growth through discounting,” he said.
Uber will also change strategies to focus on efficiency and profitability as opposed to growth. As part of rethinking its priorities, the company reorganized the internal structure to provide results for Rides, Eats, Freight, Other Bets and Advanced Technology Group (ATG), The company will no longer report metrics on its core platform in its results.
The company has redesigned its application to allow users to hail a ride or order food. Following its acquisition of Cornershop, Uber will now offer an operating system for everyday life.
“Whether it’s getting a ride, ordering food from your favourite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” Khosrowshahi said in a statement in September.