Uber CEO Dara Khosrowshahi said the head of SoftBank “don’t put good money after the bad” and the business and its economic backers are in line as the Japanese conglomerate sets up another megafund.
Uber and SoftBank CEO Masayoshi Son are on the same website as the SoftBank 2 Vision Fund is preparing to invest in businesses that could compete with the horse hailing giant, said Khosrowshahi, appearing on CNBC’s’ Squawk on the Street.’
“I believe Masa’s an entrepreneur. After bad, he doesn’t throw good money. When he brings cash into businesses, he thinks they will be leaders in the category. He believes in them. We are their biggest investment on a worldwide basis, so I believe our interests and Masa’s interests are closely aligned, “David Faber and Jim Cramer said to CNBC. Khosrowshahi said.
Last month SoftBank introduced its second megafund, with 38 billion dollars of its cash. The Fund is anticipated to amount to 108 billion dollars and will invest in artificial intelligence technology businesses.
This fresh investment round could boost competition for Uber, which is expanding supplies such as food delivery services UberEats to achieve profitability.
“The market for meals remains very competitive,” said Khosrowshahi. “There’s a lot of equity coming into that category because it’s increasing, and I believe that eats will be a fight this year and next year.” A fresh round of startup investment could expand Uber’s overall services industry, and benefit the business, even though it generates competition, said Khosrowshahi.
“They know everyone, they understand the markets and I am very, very pleased to have them as an investor and I regard Softbank as a very excellent player here. They will bring cash against the markets, but that will expand the markets, and we were one of the cheapest beneficiaries, “Khosrowshahi said.,” he said.
Uber missed the expectations of analysts at the top and bottom of their first quarterly report, causing their stocks to fall. The carrier lost $5.2 billion a quarter, partly because of stock compensation.
Uber Technologies Inc. have also stated that a freeze was established for staff working on software and services across the U.S. and Canada because of the increasing losses in the ride-hailing business.
An Uber spokesperson said Friday that the firm based in San Francisco has stopped recruiting fresh software engineers and product managers. Those teams surpassed their recruitment targets for the year, he said. The freeze does not include Uber’s freight employees or self-employed cars.