Uber is cutting 400 people in its marketing unit. Call that the heat from markets. Yes, being a publicly traded company over being a private one. Uber will now be measured not by hype but by numbers it is bringing in the business. I still maintain that Uber and Lyft will merge. If Lyft does not join Uber, a consortium of car companies will acquire it to deploy their vehicles in the redesigning transportation sector. That decision will come because profitability for these firms will take longer and markets cannot wait on just promises.
The ride-hailing company will dismiss about 400 employees, said the person, who asked not to be identified because the details aren’t public. Dara Khosrowshahi, the CEO, told employees of the changes in an email Monday.
“Today, there’s a general sense that while we’ve grown fast, we’ve slowed down,” Khosrowshahi wrote in the email reviewed by Bloomberg. “This happens naturally as companies get bigger, but it is something we need to address, and quickly.”
Uber market cap is $71.5 billion, well below the rumored excess of $100 billion it raised money in its last private round.
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