Uber & Lyft: Ride Hailing Company Goes Through Downfall
Uber and Lyft, San Fransico based companies have reported loosing of the company. Looking forward to Uber, it has laid one-third of its global marketing staff while it is reported that Lyft’s COO Jon McNeill is leaving the company.
The two of the leading ride-hailing companies have been under pressure from Wall Street to perform well on the stock markets. After the news of Lyft’s executive elimination, their share price dropped by 3%. Uber had around 1,200 global marketing staff.
In an email to staff, Uber’s CEO Dara Khosrowshahi said that the company’s cut is an effort to make the company more agile amid the slow growth. “Put simply, we need to get our edge back. Being fast wins,” he wrote. “Many of our teams are too big, which creates overlapping work.”
While Lyft said in an email that COO Jon McNeill’s work will be distributed among the executives. He was a former Tesla executive. The mail perceived by the Wall Street Journal it said “with gratitude, we say goodbye” to now-former COO. His main job was to increase driver supply and retention, a critical issue for ride-sharing companies.
Mr. John received compensation worth $32.8 million in 2018, including a $420,000 bonus “in recognition of his outstanding leadership and contributions to our 2018 performance,” according to regulatory filings.
According to the company’s first report, it lost $1.01 Billion. After the reports, the company’s stock was trading around $40 which is below 11% at its debut share price. “There’s a general sense that while we’ve grown fast, we’ve slowed down,” Khosrowshahi said in the email.
CEO Dara said that the company is looking for direct operations. Earlier in June, chief marketing officer Rebecca Messina left the company just after working for nine months in the company.