Andreessen Horowitz Merges Fintech and Consumer Teams After Some Bets FizzleRead more

Uber CEO Dara Khosrowshahi. Photo by Bloomberg.

What Uber CEO’s Cost-Cutting Memo Reveals

Photo: Uber CEO Dara Khosrowshahi. Photo by Bloomberg.

The relentless stock market drop is starting to spook tech CEOs. Over the weekend, Shopify’s CEO Tobi Lütke, perhaps irritated by his stock’s 75% drop so far this year, questioned whether Wall Street analysts were held accountable for their work. Even more telling was Uber CEO Dara Khosrowshahi’s staff memo—first reported by CNBC—revealing his takeaways from meetings with investors over the past few days. “The market is experiencing a seismic shift and we need to react accordingly,” Khosrowshahi wrote in the memo.

His primary message was that Uber has to be more careful in its spending (“we will treat hiring as a privilege”). That makes sense right now, although most CEOs would attribute such a shift to economic worries, rather than the stock market. Well, at least Khosrowshahi is being honest about what motivates him. What was stunning, though, was his statement that “the goal posts have changed. Now it’s about free cash flow.” Uh, Dara, the profitability goal posts have been planted in the same spot for several years now. It’s just that you weren’t paying enough attention. The clue should have been Uber’s stock trading below the IPO price for most of the three years since the company’s public debut.

Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
CareRev co-founder Will Patterson stepped down as CEO last week. Art by Clark Miller
Exclusive startups venture capital
A Long, Strange Trip for the ‘Uber for Nurses’
Will Patterson was on a hot streak. As the co-founder and CEO of CareRev—a gig-work platform sometimes described as an “Uber for nurses”—he saw his company’s business surge during the pandemic as hospitals and clinics scrambled to find healthcare workers.
Photo via Shutterstock.
Exclusive startups Finance
Inside the Culture Clash at JPMorgan and WePay
When JPMorgan Chase struck a $400 million deal to buy WePay in late 2017, it pledged that the Bay Area fintech would become “Chase’s payments innovation incubator in Silicon Valley,” helping the country’s biggest bank compete with surging startups Stripe and Square and payments companies like PayPal.
Art by Clark Miller.
The Big Read space venture capital
The Overlapping Galaxies of Delian Asparouhov
Delian Asparouhov, newly minted Founders Fund partner and co-founder of Varda Space Industries, is obsessed with speed.
Marc Andreessen. Photo: Bloomberg.
Exclusive startups venture capital
Andreessen Horowitz Merges Fintech and Consumer Teams After Some Bets Fizzle
Andreessen Horowitz has combined its finance and consumer investment teams into one, merging what were two of the hottest pandemic-era investment categories that have since cooled.
Peng Zhao, CEO of Citadel Securities. Photo by Bloomberg.
Exclusive ai venture capital
Wall Street Firm Citadel Securities Courts AI Startups for Trading Edge
Citadel Securities, a prominent high-frequency trading firm, has told startup founders and investors it is looking to license software from artificial intelligence startups working on large-language models or to buy stakes in them, according to two people with knowledge of the conversations.
The Port of Los Angeles, where Next Trucking has a significant presence. Photo by David McNew/Getty Images.
Exclusive startups Finance
Logistics Startup Next Trucking Tries to Sell Itself
Sequoia Capital–backed logistics startup Next Trucking, facing a slowdown in the trucking sector, is trying to sell itself, according to people familiar with the matter and a pitch deck reviewed by The Information.