Uber says it plans to focus extra on its electric scooter and bike business, and less on cars, despite the reality it will hurt income.
Boss Dara Khosrowshahi said that particular modes of shipping were better suited to inner town travel.
He additionally forecast users could make extra common shorter trips in future.
“All Through rush hour, it is very inefficient for a one-tonne hulk of steel to take one person 10 blocks,” he advised the Financial Instances.
“Brief-time period financially, possibly it’s not a win for us, but strategically long run we expect that is precisely where we wish to go.”
Image copyright Soar Bikes
It also teamed up with Lime, an electric scooter corporate, while forging offers in different spaces equivalent to public transit and freight.
Mr Khosrowshahi admitted that Uber makes less cash from a motorcycle journey than from the similar travel in a automobile, but stated this will likely be offset as consumers used the app more regularly for shorter trips.
“we are willing to trade off brief-term in line with-unit economics for long-time period higher engagement,” he informed the FEET.
He additionally acknowledged that Uber drivers may just lose out from the plan, however mentioned over the long term drivers would benefit from extra profitable longer journeys.
Uber, which misplaced $4.5bn (£3.5bn) last year, is under pressure to improve its funds sooner than an anticipated public listing.
Revenue from its taxi trade is rising but the cost of expansion into new spaces comparable to motorcycle sharing and food supply has intended losses have grown rapidly.
Regulatory drive could also be threatening growth in a few markets.
This month Ny voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion, even as the mayor of London has stated he’ll seek an identical regulations.