This archive report was first published on 10 November 2019.
Uber's journey to profitability has been a long and arduous one, marked by significant losses and a struggle to differentiate itself from competitors.
As I wrote in 2017, Uber's founder Travis Kalanick's leadership style was a major liability for the company, with his 'insolent aggression and disdain for criticism' creating serious problems for the company's growth and reputation.
However, with Kalanick's departure and the appointment of Dara Khosrowshahi as CEO, Uber has attempted to adopt a more grown-up ethos and address some of the issues that have plagued the company.
Despite this, Uber's latest quarterly loss of $5.24 billion is a stark reminder of the challenges the company faces in achieving profitability.
One of the main reasons for Uber's struggles is the intense competition in the ride-hailing market, which has made it difficult for the company to differentiate itself and maintain a sustainable business model.
With low barriers to entry and a lack of emotional attachment among customers and drivers, Uber has found it challenging to maintain its market share and profitability.
Furthermore, the cost of providing the service has been a major issue for Uber, with the company's decision to slash fares and offer cheap and convenient travel to vast numbers of people resulting in significant losses.
While Uber's long-term vision for autonomous cars may hold the key to sustainable profitability, the transition to self-driving vehicles is likely to take several years, and it remains to be seen whether the company will be able to navigate this challenging period.
As I noted in my book, The Bigger Deal, there is a different way available to companies like Uber - one that prioritizes stability and sustainability over breakneck growth and short-term gains.
