Uber hires CFO on the road to IPO

This article first appeared in The Edge Financial Daily, on August 23, 2018.
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SAN FRANCISCO: Uber on Tuesday named a new chief financial officer  (CFO) as the smartphone-summoned ride service remained on the road to a stock market debut next year.
Nelson Chai came on board from Chicago-based insurance firm Warranty Group, where he was chief executive, according to Uber.

“I’m incredibly excited to bring on someone as experienced and thoughtful as Nelson,” Uber chief executive Dara Khosrowshahi said in a release. “He will be a great partner for me and the entire management team as we move towards becoming a public company.”

Uber, which operates in 65 countries and has disrupted local transport in many locations despite regulatory hurdles and resistance from taxi operators, has expressed plans for an initial public offering (IPO) of shares late next year.

Chai has more than a decade of experience at firms including CIT Group financial holding company and Merrill Lynch & Co, according to Uber.

“I look forward to working closely with Dara and team as we build on the company’s strong growth and forward momentum,” Chai said in the release.

Uber last week disclosed that its second-quarter loss jumped despite taking in more money, as it invested in scooters and other “big bets”.

The San Francisco-based smartphone ride star reported it lost US$891 million (RM3.65 billion) on net revenue of US$2.8 billion, while overall bookings rose to US$12 billion.

Khosrowshahi added that Uber is investing in “big bets” including restaurant takeaway delivery service Uber Eats and “environmentally friendly modes of transport” including e-bikes and scooters.

The company, with a valuation by investors of more than US$60 billion, is also devoting resources to what it sees as high-potential markets in India and the Middle East, according to Khosrowshahi. — AFP