19 February, 2016, USA: Uber CEO, Travis Kalanick makes into the headlines once again as he proclaims that his ride hailing company is now pumping profit in United Sates of America. He made statement while having conversation with a Canadian media outlet. However, he also claimed the company’s Chinese unit is losing US $1 billion per year.
“We’re profitable in the USA, but we’re losing over $1 billion a year in China. We have a fierce competitor that’s unprofitable in every city they exist in, but they’re buying up market share. I wish the world wasn’t that way. I prefer building rather than fundraising. But if I don’t participate in the fundraising bonanza, I’ll get squeezed out by others buying market share,” says Kalanick
CEO’s statement on company’s strong performance in US market has created lot of buzz in the market, and it seems like the company is aiming to maintain its dominance in the market. Last year, Kalanick reportedly told company employees that North American operations would be profitable by Q2 2016. Company’s financial projections also suggest that its overall performance is improving day by day and it is expected to deliver a fruitful result by the end of this year. Though the company’s spokesperson has confirmed the overall profitability, but he declined to comment further on the subject.
Image- indiawires.com
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