Uber Technologies Inc. (NYSE: UBER) inches down in pre session on Wednesday as the Uber CEO Dara Khosrowshahi stated Tuesday morning that rival Lyft competing with Uber “sets up a competitive environment” in the US market.
Khosrowshahi stated that Uber regarded Lyft – which he characterized as both a “very, very strong brand” that was “not going anywhere” and one that was “going through a lot of changes” – as “looking to price competitively” with the ride-hailing firm he leads.
According to the CEO of Uber, this creates a “competitive environment where we’re competing on brand” as well as “service and ETAs and accuracy, reliability, etcetera.”
He made the comments about Lyft to analysts and investors who had gathered for an earnings call to hear about Uber’s first-quarter results.
In late March, Lyft announced major leadership changes, including the appointment of board member David Risher as the ride-sharing company’s new CEO and the move of co-founders Logan Green and John Zimmer to board positions.
Not long after Risher took onboard, Lyft announced on April 27 that it will cut over 1,000 jobs and reduce hiring as part of a cost-cutting reorganization strategy. The savings, according to the firm, would go into “continued service-level improvements benefiting riders and drivers.”
Khosrowshahi stated on Tuesday that Uber has not “seen any signal otherwise” about the establishment of a competitive environment in the United States.
“But I think you’ll have to ask them [Lyft] that question when they report their earnings, as far as what their strategy is going forward,” he added.
Lyft’s first-quarter numbers will be released late Thursday afternoon, and the firm has stated that it would also disclose further details regarding the use of cost-cutting savings.
“But, so far, what we see is constructive, and we don’t see any reason why it would change,” Uber CEO added. “I believe the market has stated unequivocally that the days of paying for shares and essentially using shareholder money to buy shares temporarily are over.” As a result, we believe that the overall competitive climate for technology, particularly in our business, will be beneficial in the future.”
Lyft, which operates in the United States and Canada, has been competing for market share with Uber, which also offers food delivery and other services.
Uber’s revenue increased 29% from the first quarter of last year, when it was $6.85 billion, to $8.82 billion on Tuesday. In the first quarter of 2023, it reduced its net loss to $157 million. The ride-sharing company’s quarterly gross bookings increased 19% year on year to $31.4 billion.
