Uber has achieved profitability and experienced significant growth by focusing on Uber Eats and mobility.
Uber learned valuable lessons from Booking.com, such as the importance of expanding supply and targeting a larger market.
Uber recognizes DoorDash as a formidable competitor in the food delivery space, and aims to improve its selection and presence in urban and suburban markets.
Uber prioritizes the driver and courier experience, focusing on optimizing the worst 5% of experiences and building a platform that has a positive impact on people's lives.
Deep dives
Uber's transformation and growth
In the past 12 months, Uber has experienced significant growth, with over $30 billion in revenue, up from $10 billion two years ago. They have focused on two main businesses, Uber Eats and mobility, and have divested other non-core areas. Furthermore, they have achieved profitability, a milestone that was previously unimaginable, given the massive losses before their IPO.
Interview with Uber CEO Dara Khosrowshahi
The podcast episode featured an interview with Uber CEO Dara Khosrowshahi, where he shared insights into his career and the incredible journey of leading Uber. He discussed his experiences in previous roles, including his time as CEO of Expedia. He also touched upon significant moments in Uber's history, such as the IPO and the challenges the company faced.
Lessons learned from Booking.com
Uber learned valuable lessons from its competitor, Booking.com. They observed the importance of focusing on a larger market and targeting fragmentation of supply, which led to Booking's success. These insights have shaped Uber's strategy, particularly in expanding their supply base and growing their market presence.
The competition landscape
While Uber faces competition from companies like Lyft, they also regard DoorDash as a formidable competitor in the food delivery space. DoorDash's focus on suburban areas and extensive restaurant selection has positioned them strongly. Uber recognizes the need to expand their own selection and presence in both urban and suburban markets, and they are actively working to make improvements in this regard.
Building a Platform for Earners
Uber's focus is now on building the best platform for earners, recognizing the importance of the driver and courier experience. The company acknowledges the duty of care to provide a great experience for the 5.6 million earners on the platform. They aim to optimize the P95 experience, focusing on the worst 5% of experiences to ensure improvements for earners spending significant time on the app. Uber emphasizes the cultural shift towards humility and listening to earners, building a platform that is connected to the real world and has a positive impact on people's lives.
The Value of Low Take Rates
Uber believes that high take rates are dangerous and aims to minimize them. They recognize that reducing the take rate is a better long-term strategy, as it builds more durability and leaves more on the table for ecosystem partners. By focusing on lower take rates, Uber aims to optimize volume and make the platform more attractive for earners. They prioritize delivering excellent experiences while maintaining low take rates to ensure sustainable growth.
The Future of Self-Driving Cars
The future of self-driving cars is uncertain, and the last 2% of use cases presents a challenge. The question arises of how safe robot cars should be to gain societal acceptance. Dara Khosrowshahi believes that even if robot cars are 10 times safer than human-driven cars, there would still be 4,000 fatalities a year in the US, which raises concerns about societal readiness. Uber continues to experiment and build partnerships in the self-driving space but predicts that full-scale adoption may take more than 10 years.
Uber CEO Dara Khosrowshahi dropped by the Acquired studio for an Eats delivery, so we broke out the cameras and asked him to hang out for a wide-ranging conversation. :) We talk about his 20 years working with Barry Diller, starting his career at Allen & Company, how the Uber CEO search process ACTUALLY went down… and oh yeah, the massive transformation that’s happened at Uber over the past few years. When Dara took over the company it was bleeding huge sums of cash, losing share to competitors and embroiled in one of the biggest corporate controversies in recent memory. Fast forward to today and it’s turned cashflow positive while also having tripled revenue to over $30B (on $120B in GMV) and solidified its rideshare dominance in the US. And in perhaps the biggest change, it’s done it all while staying out of the headlines. Tune in!
Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
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