Car sharing and better algorithms – how Uber plans to impress on its Investor Day

Delivery bags with Uber Eats logos are seen on a street in central Kiev, Ukraine May 27, 2020. REUTERS/Valentyn Ogirenko/File Photo

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Feb 10 (Reuters) – Uber Technologies Inc (UBER.N) will present its strategy for growth and new business opportunities on its first investor day as a public company on Thursday, after disclosing information on a global network of car sharing and improved algorithms to reduce costs.

During a fourth-quarter earnings call on Wednesday, company executives said they would provide more details on how Uber plans to merge its two platforms — transit and car delivery. food – into one economical Uber market.

Since Uber’s IPO in May 2019, the company’s shares have been on a rollercoaster ride, nearly halving at the onset of the pandemic in early 2020, when hail transportation business from the l company came to an abrupt halt.

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Uber tells investors it has turned the corner and is poised for long-term growth and profitability as pandemic restrictions ease in many of its major markets, but its shares remain roughly at the bottom. same level as when they were first listed.

The company released its second-quarter operating profit on Wednesday and said transportation demand had returned to near pre-pandemic levels. Read more

Uber chief executive Dara Khosrowshahi said the company has shareholder interests in mind.

“We want to be a growth business, but we want to be a profitable growth business and we want to improve our margins going forward,” he told analysts on a conference call Wednesday.

Khosrowshahi said a better mix of its transportation and delivery businesses would reduce customer acquisition costs – a move investors are watching closely in a market where companies have long competed by outbidding each other with discounts. and costly customer incentives.

The company has also tweaked its algorithm to ensure more workers sign up for both transportation and delivery services, Khosrowshahi said, adding that it would improve driver dispatch and enable higher utilization of each worker.

The CEO also promised an update on other new business opportunities, including a global peer-to-peer car rental network. Uber acquired Australian car-sharing company Car Next Door last month and Khosrowshahi said Uber plans to expand the car-sharing footprint.

“I think with peer-to-peer car rentals, we’re going to go global. We’ll make sure we do it the right way,” he said.

Several automakers have exited the peer-to-peer car-sharing market in recent years, citing high costs and the volatile state of the mobility industry.

Uber’s Investor Day will take place in New York and begin at 9 a.m. local time.

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Reporting by Tina Bellon in Austin, Texas Editing by Matthew Lewis

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Sharon D. Cole