Uber announced at the beginning of May that 14% of its workforce, that is, 3,700 full-time employees, will be laid off. With a plethora of digital freight matching technologies being employed by incumbent brokers, it’s tough for startups to make a meaningful dent,” added Tucker in his statement for WSJ. Uber’s digital load-matching “is fairly vanilla, and only the tip of the service iceberg brokers provide,” said Jeff Tucker, CEO of Tucker Company Worldwide Inc. A Morgan Stanley analysis last year suggested the business wouldn’t generate profits for years. Some brokers say that Uber Freight’s high growth and deep losses are a sign that the company has simply been buying market share by selling its services below its own costs, reports “Wall Street Journal”. But it seems that the construction will not happen. In September Uber unveiled plans for a Chicago hub that would serve as Uber Freight headquarters, saying it planned to hire thousands of employees. This accounted for about 5.7% of Uber’s quarterly revenue. Uber Freight lost $64 million in the first quarter despite a 57% jump in revenue, to $199 million, from the same period in 2019. The platform might not be doing enough to shore up the finances at its parent company. Uber Freight has had a significant impact on its market but has been hard-pressed to turn its gains into profits,” reads the WSJ article. The American giant, reeling from the impact of the coronavirus pandemic, is re-evaluating its Uber Freight operation as it slashes jobs and cuts costs, in an effort that includes a new look at its costly bets on noncore business lines, reports “Wall Street Journal”.
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