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Uber CEO: We Could Be Profitable -- We Just Don't Want To Be (fastcompany.com)
Uber CEO Dara Khosrowshahi said he's not worried that his company lost $4.5 billion last year and claimed the company could "turn the knobs" to be profitable if it wanted to -- it just doesn't. From a report: Khosrowshahi made the comments at the Goldman Sachs Technology and Internet Conference in San Francisco this week where he explained that if Uber did turn those knobs to be an immediately profitable company it would "sacrifice growth and sacrifice innovation." He also spoke optimistically about the impact self-driving cars will have on transportation costs.
Serious question here, how does a company lose 4.5 BILLION dollars and survive? That's just mind boggling.
What's better, revenue, or profit? I worked once for a shop that had profit every single quarter (and tidy bonuses for all of us under the sharing plan), right up to the day they laid us all off and closed down the shop.
Actually.. It's CASH FLOW that kills more companies that lack of profit. You can make a tidy profit, but if you don't have the cash to pay the bills when they come due it's game over.
You need profit to stay in business long term but Cash flow will kill you today...
"File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
Reinvesting profits is not the same as losing money. Uber is only surviving on continued flow of investor money. Amazon was was surviving on its own sales revenue.