Uber Technologies Inc (NYSE:UBER)’s Uber Eats Head – Jason Droege will step down because the company focuses on profitable and growing food delivery service business without spending all of the hard-earned money.
Founded Uber Eats
The uber executive Jason has established Uber Eats in December 2015. It has grown to become the second revenue earning business after the raid hailing business. Jason announced on Tuesday that he will step down from the company as head of the Uber Eats. Chief Executive Officer of Uber, Dara Khosrowshahi, said Uber Eats is a core segment of the Uber’s revenues and the future business. He said all this is not possible without Jason.
Pierre-Dimitri Gore-Coty to head Uber Eats
The long term executive of Uber, Pierre-Dimitri Gore-Coty will act as head of Uber Eats. He previously served as Vice President of the ride-hailing business of Uber outside North America. Jason will ensure a smooth transition of the role and stay until June 2020 at the company.
Commenting on the leadership change, Dara said Uber Eats enter the phase of more profitable growth. He is pleased that Gore-Coty will take over the charge of this flourishing business. Dara expects that Gore-Coty will use his eight-year experience at the ride-hailing business to improve the business by capitalizing on the burgeoning opportunities ahead.
Uber lost $8.5 billion in 2019
Uber is struggling to win the investors after going public in May 2019. The company is in steep losses. Investors are concerned about its ability to turn black. Uber lost around $8.5 billion last year. During an earnings call, Dara said the era of bleeding cash to achieving growth is over. It looks to achieve profits and make the company turnaround through its profitable business – Uber Eats, which is flourishing. However, the investors are keenly watching Uber Eats because of the prevailing intense competition in the food business. Some of the competitors in the food business are Grubhub, DoorDash, and Postmates in the US.
Revenues of Uber Eats surged to $734 million in the recent quarter, an increase of 68% when compared to the same period last year. CEO said the company will focus on improving growth going forward.