CEO Dara Khosrowshahi has admitted that Uber will continue to be unprofitable in the US market space for at least another 6 months following aggressive competition from its main rival Lyft.
Khosrowshahi said on Thursday in his first public comments since becoming Uber's Chief Executive:
“The U.S. is very, very competitive right now between us and Lyft, so I don’t see the U.S. as being a particularly profitable market for the next six months,”
Uber have been operating in the U.S for 8 years now without a sustained profit. They have relied on huge investments to fund a heavily subsidised business model to gain and maintain enough market share to hopefully one day become a profitable company. But with fierce competition coming from Lyft in America and and their Asian equivalent, Grab, this war of 'who has the most money in the reserves' to outlast the rest, is likely to go on for quite some time yet.
As reported in Reuters Khosrowshahi went on to speak about Uber's current plight in Brazil and most notably Britain, the U.K in particular, saying he's held "productive" talks with Transport For London following their refusal to issue a new operators licence . He went on to add:
"We were guilty of not communicating. I think we were generally immature in how we deal and dealt with regulators." He continued to say his team were working to meet the "perfectly reasonable asks" from those at TFL.