Uber marries food delivery, ride-sharing apps to boost customer base
Under pressure from investors to start turning a profit, Uber plans to combine its Uber Eats and ride-sharing apps in a bet that users loyal to one service will start using the other.
"We want Uber to be the operating system for your everyday life," CEO Dara Khosrowshahi said in a statement on the company's website. "However you want to move around your city, and whatever you need, we want Uber to be your go-to app."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 73.25 | +1.81 | +2.53% |
The next-generation app, being tested in hundreds of cities in the U.S. and around the world, puts Rides, Eats and future services side-by-side and will be accompanied by a push to ensure every customer is treated like a VIP, Khosrowshahi said.
The San Francisco-based company's stock has tumbled 30 percent since going public in May. In the first half of 2019, it had $6.2 million in losses, which was largely the product of $4 billion in share-based compensation given to employees that had to be reported with the stock offering.
Whether Uber customers will be pleased with the firm's new strategy remains to be seen.
"This is a big change for us, but we, as a company, have never been afraid of big changes," Khosrowshahi said.
The Associated Press contributed to this report.