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The
ride-hailing company becomes the latest to rein in costs to have
a lean investment model, after Facebook-owner Meta Platforms Inc
said last week it would slow down the growth of its workforce.
Khosrowshahi said Uber's change in strategy was a necessary
response to the "seismic shift" in investor sentiment, according
to the CNBC report.
"The least efficient marketing and incentive spend will be
pulled back. We will treat hiring as a privilege and be
deliberate about when and where we add headcount," the report
quoted Khosrowshahi as saying.
Uber said last week its driver base is at a post-pandemic high,
and the company expects this to continue without significant
incentive investments, a sharp contrast to rival Lyft Inc which
has said it needs to spend more for labor.
The company will now focus on achieving profitability on a free
cash flow basis, rather than adjusted earnings before interest,
taxes, depreciation, and amortization, according to the CNBC
report.
The ride hailing giant expects to generate "meaningful positive
cash flows" for the full year, according to its latest earnings
report.
Khosrowshahi added in his letter that Uber's food delivery and
freight businesses need to grow faster, the CNBC report added.
Uber did not immediately respond to a Reuters' request for
comment.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Rashmi Aich)
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