The Profitability Factor of Uber

May was a tough month for Uber. The company that had lost more money, faster than any venture in history, added the distinction of having destroyed more shareholder value in its first two days of trading than any IPO in history – by a wide margin.

In response, Uber CEO Dara Khosrowshahi sent a letter to employees, striking a decidedly somber tone.

“There are many versions of our future that are highly profitable and valuable, and there are of course some that are less so… Sentiment does not change overnight and I expect some tough public market times over the coming months.”

Khosrowshahi’s candor was admirable, but his appraisal could hardly be reassuring to thousands of employees whose stock options are under water, and who now find themselves working for a company that is neither profitable nor growing.

Read the full article at Forbes.

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