Uber Shakeup Continues as VP Finance Leaves
On Thursday, Uber announced that the company’s current Vice President of Finance Gautum Gupta will be leaving the company in favor of another Bay-area startup. This vacancy is unrelated to Uber’s recent dismissal of the company’s head of autonomous vehicle R&D, according to the company.
These recent departures cap off a sub-par week for the ridesharing company, in which the company posted a loss of more than $700 million in the first quarter alone. While Uber did note strength in a number of developed markets outside the U.S., the 18% rise in revenue was not enough to bring the company’s negative net margin into the black.
Uber’s net income deficit did narrow, from a loss of $991 million last quarter to $708 million this past quarter, however the lack of significant progress on the profitability front has many investors and analysts in the ride-sharing company nervous about the future.
Competition has begun to heat up in the ride-sharing sector, with other companies such as Lyft taking a bite out of the market once dominated by first-mover Uber. As consumers continue to make choices relating to which ride-sharing company to use and as the market continues to become more defined and segmented, Uber will likely continue to feel the “growing pains” associated with being one of the first companies in a growth industry.
The drive to profitability (excuse the pun) will be interesting to watch over the coming quarters, as industry participants continue to jockey for market share and profits in the ride-sharing business.
