Uber has decided not to go ahead with a big new headquarters in Oakland, across the bay from its current San Francisco base, citing the need to cut costs. This is just the latest signal that the company is taking more seriously the need to bring costs down and improve margins, following on from the abandonment of the Chinese and Russian markets and the end of its US car-leasing program. It’s not clear whether this would all have happened even if Travis Kalanick were still in charge, but it is clear that the board and broader management that’s currently running the company is taking the opportunity to whittle costs and get the company in better financial shape. Recall that it lost hundreds of millions of dollars in the second quarter even on an adjusted basis, so there’s still a long way to go, and improving the economics of the ride sharing business itself is still the key to long-term profitability, but all this helps too.
via Business Insider