Ride hailing company Uber Technologies Inc. (UBER) says that it will be cutting costs on its marketing and incentive activities and scale down hiring in efforts to cut down on its capital expenditure. This development was revealed through a letter from the company’s chief executive officer, Dara Khosrowshahi.
“The least efficient marketing and incentive spend will be pulled back. We will treat hiring as a privilege and be deliberate about when and where we add headcount,” wrote the CEO in the letter.
According to the CEO, this strategy change comes as a necessary response to the seismic shift in investor sentiment. Going forward, the company will be focusing on achieving profitability on a free cash flow basis rather than adjusted earnings before interest, taxes, depreciation, and amortization.
Recently Uber announced that it would be adopting a new investment model which is aiming at curbing costs at the company. Similarly, a few days ago, Meta Platforms Inc. (FB) said that it will be slowing down growth of its labor force.
According to the company’s attest earning report, Uber expects to generate meaningful positive cash flows for the full year.