Uber seems to be everyone. The drivers are all over the streets and the company is always in the news. The sad part about the latter is the company is always in the news for something unflattering. Uber’s business fortunes have been awful lately. The company has lost hundreds of millions of dollars. Recently, it has been announced the company’s board has been thinking about “temporarily sidelining” CEO Travis Kalanick.
The directors seem to think there needs to be a new change in leadership. Still, no immediate decision to outright fire Kalanick has been made. If he does return to the company, greater oversight of his performance might be instituted. No manager likes to be placed in such a position, but the scenario may be unavoidable.
No real mystery surrounds why the board of directors thinks it may be time for new leadership approaches and a new direction. The company is losing a tremendous amount of money. Losses of the magnitude Uber experiences are soon to become unsustainable.
The serious question here is “Can anything be done to change the direction of the Uber ship and make things profitable once again?” Uber is a relatively simple concept. Through the use of an app, Uber facilitates freelance ridesharing to compete with local taxi companies. Uber is hugely popular among people who want to save money on short rides. Those working for Uber as freelance drivers seem to make decent money.
The amount of money generated into Uber’s corporate bank accounts seems to be underwhelming. The generation of revenue, while significant, is clearly not enough. Several hundreds of millions of dollars in losses supports the accuracy of this assessment.
Overspending could be a major problem in the operation of Uber. Whatever the reasons for the company’s losses, something needs to change or else the company will fold.