CEO expects Uber to be profitable before 2022

LONDON— Uber Technologies Inc., whose losses have piled up in the quest for growth around the world, will be profitable in three years as its ride-hailing business matures and the company reaps the rewards from investments in areas such as autonomous vehicles, said chief executive officer Dara Khosrowshahi.

Bending the company’s financial trajectory out of the red would be a dramatic shift for the global ridehailing service, which has been losing billions of dollars per year. At the World Economic Forum in Davos, Khosrowshahi said that even as the company would continue to be aggressive about expansion, it was finding ways to be more efficient.

While Khosrowshahi didn’t give a specific time frame, he said “we’ll be profitable before 2022.”

The core ride-sharing business can be profitable “within three years,” he said, while also cautioning that “we will continue to make very aggressive investments.”

During the third quarter, the company lost $1.46 billion (U.S.), up from $1.06 billion during the previous three-month period.

Almost six months into his tenure leading Uber, Khosrowshahi is attempting to reverse what has been an unprecedented period of turmoil. The company is facing various government investigations, allegations of sexual harassment and increasing competition from rivals around the world. Khosrowshahi said his goal for 2018 is to “get back to normalcy” after the challenges left by former CEO Travis Kalanick.

“Breakneck growth can hide cultural issues,” he said.

Khosrowshahi said the company was investing heavily in autonomous car technology and that it would begin adding the cars in some cities within 18 months. Uber is also developing vehicles that will fly customers to certain destinations within cities that Khosrowshahi predicted will be available within 10 years.

Khosrowshahi has said he wants to take Uber public as early as next year, a process that would open the company’s financial performance up to more scrutiny. Uber recently finalized a deal that makes the Japanese technology conglomerate SoftBank Group Corp. its largest shareholder.

Rajeev Misra, a SoftBank executive joining Uber’s board, suggested in a recent interview with the Financial Times that Uber focus on core markets such as the U.S., Europe, Latin America and Australia. In the interview at Davos, Khosrowshahi disagreed, saying the company would be “leaning forward” to expand.

Since taking over as CEO last summer, Khosrowshahi has been on a charm offensive to improve the company’s image. He said the company must work more closely with regulators rather than the more combative approach it took under Kalanick. The technology industry will face more scrutiny, especially as it brings about changes to transportation and other areas affecting people’s safety, Khosrowshahi said. Regulation is “appropriate,” he said.

He predicted that driverless car technology is advancing so quickly that a child born today won’t need to learn to drive. He noted the general public still has to grapple with the impact of the technology, particularly when there are accidents. While he said traffic fatalities will fall, companies such as Uber will be held responsible when there are collisions.