ADVERTISEMENT

Uber CEO Dara Khosrowshahi says ride-hailing will make up only 50% of the company's business moving forward as food delivery growth surges (UBER)

Uber CEO Dara Khosrowshahi said in an interview with NDTV Thursday that Uber's business will be split "50-50" between ride-hailing and other divisions like food delivery.

ADVERTISEMENT

Uber's efforts to diversify outside of ride-hailing will continue for the foreseeable future, CEO Dara Khosrowshahi told NDTV in an interview Thursday evening.

"I think it's going to be 50-50," Khosrowshahi said, in response to a question about how he expects Uber's business will be split moving forward between ride-hailing and other divisions like food delivery, which has exploded during the coronavirus pandemic.

"Our delivery business is growing at rates that, frankly, I didn't think was possible, and we have doubled up on that.," he said. "So we're augmenting the organic growth with acquisition as well and I think we're cementing a real leadership position in what's going to be a very, very big market going forward."

ADVERTISEMENT

Uber announced Monday that it plans to buy Postmates for $2.65 billion in an all-stock deal that could significantly boost its share of the US delivery market. Weeks earlier, its acquisition talks with Grubhub fell through amid rumors of antitrust concerns and disagreements between Uber and Grubhub leadership.

Uber's expansion into food delivery comes as the company is looking to offset substantial losses during the pandemic, which caused rides to plummet as much as 94% in March. While Uber said rides have rebounded slightly, it still reported $2.9 billion in losses for the first three months of this year and laid off more than 14% of its workforce in May in an attempt to cut costs.

Food delivery has also been massively unprofitable both for delivery providers and restaurants . While the company said it saw a 52% jump in Uber Eats orders last quarter, it still lost $313 million on the business.

See Also:

ADVERTISEMENT

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Mastering adaptation: Strategies for soccer league matches

Mastering adaptation: Strategies for soccer league matches

10 African countries that waste the most food in 2024

10 African countries that waste the most food in 2024

US troop withdrawal from Niger hangs in the balance

US troop withdrawal from Niger hangs in the balance

Detained Binance executives sue Nigerian authorities for human right violation

Detained Binance executives sue Nigerian authorities for human right violation

Nigeria's central bank increases minimum capital base for banks

Nigeria's central bank increases minimum capital base for banks

Sony’s creators convention redefines the creative landscape for content creators

Sony’s creators convention redefines the creative landscape for content creators

Exploring the popularity of progressive jackpot slots in Indonesia

Exploring the popularity of progressive jackpot slots in Indonesia

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

10 African countries with the lowest life expectancy according to the World Bank

10 African countries with the lowest life expectancy according to the World Bank

ADVERTISEMENT