Uber posts $708m loss in first quarter, finance chief quits
Uber's continued saga of misfortunes turns one more page as the firm's head of finance, Gautam Gupta, leaves Uber to join an unnamed start-up. Meanwhile, according to WSJ reports, Uber's quarterly losses have narrowed down to $708 million in the first quarter from $991 million it had posted in the fourth quarter of 2016. Here's all you need to know.
Gupta saw finances after CFO Brent Callinicos left in 2015
Gupta has been with Uber for almost four years; Kalanick remarked, "We couldn't have done it without him, and I will miss his energy, focus, and infectious enthusiasm." This exit creates another empty spot at the top that the firm needs to fill as soon as possible, as it is edging towards an IPO and can't afford to not have a CFO.
Ex-Waymo employee Levandowski was fired recently
The firm is also on the lookout for a COO, after facing major flak from the media for having a corporate environment that is extremely hostile towards women. Recently, Uber fired Anthony Levandowski, who was heavily embroiled in the Waymo-Uber battle after he failed to comply with an internal deadline to submit evidence; Levandowski had previously pleaded the Fifth Amendment to avoid self-incrimination.
A brief overview of recent exits
Other people, who have stepped down or have been fired recently, are New York GM Josh Mohrer, President Jeff Jones, who was brought in to improve relation with drivers, VP of engineering Amit Singhal after failing to disclose previous sexual harassment claims. Head of the policy and communications team Rachel Whetstone left and head of mapping Brian McClendon went off to pursue politics.
Uber is optimistic about the future
Uber is currently sitting on a tidy cash pile of $7.2 billion and is quite optimistic despite significant losses; an Uber spokesperson said, "The narrowing of our losses in the first quarter puts us on a good trajectory towards profitability." Moreover, "These results demonstrate that our business remains healthy and resilient, as we focus on improving our culture, management, and relationship with drivers."
Ola, Uber's high attrition rate is good, says experts
According to an ET report, in India Uber is facing a huge attrition rate among its drivers and registrations of new drivers have also decreased. Experts opined that this slowdown was a sign that the market is finally stabilizing after the rapid growth it witnessed in the last couple of years.