homebusiness NewsUber will increase average price by targeting premium customers, says CEO Dara Khosrowshahi
Uber will increase average price by targeting premium customers, says CEO Dara Khosrowshahi
The era of pricing to win business is over, that's the word from Uber chief executive officer Dara Khosrowshahi. In a conversation with CNBC's Andrew Sorkin, the ride hailing app's CEO said that companies need a good service and that the company would no longer depend on over-discounting to grow.
The era of pricing to win business is over, that's the word from Uber chief executive officer Dara Khosrowshahi. In a conversation with CNBC's Andrew Sorkin, the ride hailing app's CEO said that companies need a good service and that the company would no longer depend on over-discounting to grow.
Khosrowshahi said there are different ways of increasing pricing and the era of only pricing to win business is over and it is leading to the era of having a great service.
"There is certainly some pricing power that we have in the mainline service because it is a service that people use every day and it is a service that is very well-priced."
"So, we do see some pricing power there as well. However, there are different ways of increasing pricing, for example, going after the premium segment, our U4B business now has a run rate of over $1.2 billion, growing over 50 percent year-on-year, we are getting into Uber for Health, growing over 300 percent, so that is the way of increasing the average price of the service by really going after more premium customer."
On impact of Cornoavirus on Uber, he said: "We are not seeing a significant effect on the business overall, where we see an effect is in North Asia, for example business in Hong Kong - airport business is down pretty significantly. From an overall standpoint with our portfolio, it is not material in anyway."
First Published: Feb 7, 2020 9:09 PM IST
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