Uber sees financial growth
Firm also expects lawsuit settlement with Alphabet
SAN FRANCISCO: Uber Technologies Inc tried to assuage investors’ concerns that a series of scandals were taking a toll on the business.
It told them to expect improved bookings, narrower losses and a possible settlement with Alphabet Inc that could resolve one of the company’s biggest legal hurdles.
On a conference call with investors, Uber executives said gross bookings increased more than 10% last quarter from the prior period, while losses continued to shrink, said people familiar with the meeting.
Uber’s attorney told investors that a lawsuit over self-driving cars from Alphabet’s Waymo could be settled before a scheduled court date in October, though she said no formal agreement is in the works, said the people, who asked not to be identified because the information is private.
During the 15-minute call with backers, Uber didn’t release full financial results, saying those would be ready in the coming weeks. It was the first presentation to the privately held company’s shareholders since the resignation of chief executive officer Travis Kalanick, which was forced by several of Uber’s major investors last month.
“We’re fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organisation, and our relationship with drivers,” an Uber spokesman wrote in an e-mail. He declined to comment on finances or plans for the Waymo suit.
In an e-mail, a spokesman for Waymo wrote: “We believe we have strong evidence to put in front of a jury about Uber’s misappropriation of Waymo’s trade secrets and look forward to trial.”
Uber is continuing to take steps to squeeze more revenue from customers and reduce its expansive losses. Late last week, the company quietly increased booking fees in the US and Canada.
The fee, which is designed to help Uber pay for insurance and other expenses, isn’t shared with drivers. Uber said the increase ranged from 15 cents to 50 cents per ride depending on the city. The fee accounts for US$1.50 to US$3 of each fare.