What! Tech firms actually want to make a profit?
Even Uber says the era of ‘growth at all costs’ is over
Last week Uber’s CEO committed what would have until recently amounted to blasphemy in Silicon Valley. Dara Khosrowshahi declared that “the era of growth at all costs” is over, and that investors were now demanding profitable growth instead of supporting the blitz-scale spending that has been the tech industry gospel in the past few years.
Khosrowshahi might seem like an unlikely prophet in this regard. His claim came as Uber unveiled an $8.5bn (R128bn) annual loss, which means the taxi-hailing app has a cumulative deficit of $16.4bn (R247bn) since it was founded 11 years ago, making it the least profitable tech company of all time.
But perhaps the fact that even Uber is now preaching financial resilience shows that there really is a change in the wind...