Jul 29, 2019

Uber lays off 400 out of 1,200 marketing employees

Photo: Justin Sullivan/Getty Images

Uber is laying off 400 employees from its marketing team across 75 offices, the company told the New York Times. Before the cuts, it had about 1,200 marketing employees.

Why it matters: It's not surprising to see Uber attempt to cut costs after a rocky IPO and after its CEO eliminated chief marketing officer Rebecca Messina's position last month. Uber is also reporting its quarterly earnings next week.

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Startup employees spend three times more on Uber than Lyft

While Lyft is slowly growing its share of work-related rides taken by U.S. startup employees, rival Uber commands about 75% of the total, according to data from Brex, which supplies credit cards to startup companies.

Why it matters: Business riders are an important — and lucrative — category of customers for ride-hailing companies. Workers often need transportation when they travel, to get to and from airports, for business meetings, and can be less price conscious since convenience is a high priority.

Go deeperArrowAug 8, 2019

Lyft eases off price war post-IPO

Photo: TIMOTHY A. CLARY/AFP/Getty Images

Since going public in March, Lyft is now easing off its price-cut war with rival Uber, instead competing on “brand and experience."

The bottom line: As part of its Q2 earnings, the company revealed that its sales and marketing expenses for incentives — meaning ride "coupons" — have dropped by 40% from the first quarter. It’s also quietly raising some prices at the end of June to improve its margins.

Go deeperArrowAug 8, 2019

Swedish judge finds rapper A$AP Rocky guilty of assault

A$AP Rocky. Photo: Christian Vierig/Getty Images

A Swedish judge found A$AP Rocky guilty of assault Wednesday, but the rapper, who is already back in the U.S., will not face any more prison time, reports the New York Times.

Why it matters: The allegations against Rocky caught President Trump's attention when he learned about the case through Kim Kardashian and her husband, rapper Kanye West. The president publicly offered to intervene in the matter.

Go deeperArrowUpdated Aug 14, 2019