Uber CEO Dara Khosrowshahi on Super Apps, AI and Uber Teens
Oct 26, 2023
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Uber CEO Dara Khosrowshahi discusses Uber's burn rate, AI, Uber Teens, and becoming a super app. They also talk about the importance of Uber Eats, profitability through growth, targeted advertising, credit cards, and career compounding.
Uber CEO Dara Khosrowshahi highlights the shift from growth-at-any-cost to profitable growth and outlines Uber's path to consistent profitability.
Uber is expanding its services beyond transportation, becoming an operating system for daily life with offerings like Uber Eats and features like Uber Teens and Uber Reserve.
Deep dives
Uber's CEO discusses the company's financial progress
Uber CEO Dara Koschrashahi acknowledges the high burn rate the company faced in the past, but highlights their recent positive financial performance. He mentions that Uber has become profitable for the first time, with over $1.1 billion in free cash flow in the last quarter. Koschrashahi emphasizes the importance of shifting from a growth-at-any-cost mentality to profitable growth and outlines their path to consistent profitability.
The importance of scaling for profitability
Koschrashahi explains that Uber's profitability will come from scaling the business. He mentions that as they continue to grow and increase their transaction volume, the incremental profitability from that growth will contribute to their bottom line. He further emphasizes that they don't want to excessively increase the take rate, as it could invite competition and impact the earnings of their earners, who make up a significant part of the platform.
Uber's transition into a super app
Koschrashahi discusses how Uber is expanding its services beyond transportation, becoming an operating system for daily life. He highlights the success of Uber Eats and the growth of delivery services during the pandemic. Furthermore, he mentions Uber's focus on innovation, introducing features like Uber Teens for safe rides for teenagers and Uber Reserve for advanced bookings. Koschrashahi sees the potential of building a comprehensive ecosystem and strengthening their relationship with customers.
The integration of AI in Uber's operations
Koschrashahi emphasizes that Uber has been an AI-powered company for a long time. He mentions the various ways AI is used, such as routing, estimated time of arrival, and pricing algorithms. Additionally, he highlights the opportunities for AI to enhance productivity, such as developing AI co-pilots for developers, customer service agents, and drivers. However, he notes that AI is not a perfect solution and there are ongoing efforts to ensure the quality and efficiency of AI systems.
Today on the podcast we feature Uber CEO Dara Khosrowshahi in conversation with Skift Founder and CEO Rafat Ali onstage at Skift Global Forum in New York City last month.
Among a litany of subjects, Khosrowshahi discusses Uber’s high burn rate, its use of artificial intelligence, upcoming product releases like Uber Teens, Uber becoming a super app, and how essential the delivery service (Uber Eats) is to the business today.
Visit live.skift.com to learn how you can attend our next industry defining live event. Up next is the Skift Aviation Forum, coming to Ft Worth, Texas on November 1.
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