Uber’s chief executive officer, Travis Kalanick, said the company isn’t buying its way out if its market valuation is below $40 billion.
“Our team is working very hard to bring our technology to the masses, and we are confident that the current valuation of $40B is a fair way to put it,” Kalanik wrote in a blog post Thursday.
“This valuation represents a very small portion of the market, and a market that has undergone tremendous changes over the past year.
Uber is investing heavily in its technology to address the challenges we face, but it is not investing in the way that most of the companies that are valued at more than $40 are investing.
The only way we can be sure that the next billion dollars is actually invested is if the market price for our technology and our team is $40,000/share.”
Kalanicky said that the company’s recent “significant investments in our own technology and innovation” have made it “a more attractive place to do business.”
“This is an area where we have had success, and in many cases have been able to make significant investments in new and innovative ways to accelerate the pace of change that is necessary for our long-term success,” Kalinick wrote.
He also wrote that Uber has “never been able or willing to spend millions of dollars on new technology, instead relying on a small group of engineers and engineers we’ve built our core business around.
That’s not the way to grow a company.”
Uber has struggled with a series of technological challenges in recent months.
In May, the company reported its first quarterly loss since 2014.
Kalanisky also said at the time that the ride-hailing app’s market valuation had fallen below $30 billion, but that he was confident the company would soon return to its valuation.
Uber has been in a downward spiral in recent years, which has resulted in a series and related regulatory changes and increased competition from rivals like Lyft and Sidecar.
Uber’s market value fell to about $18.6 billion in March.
“The fact is, there is no reason for us to think we can’t be profitable,” Kalalyn wrote in the blog post.
“We are making incredible progress.
We have some very talented and talented people who are building out our team and we’re investing heavily to build a world-class technology team.
We are confident we will be profitable.”
Uber also has been accused of not being transparent about how much it pays its engineers and drivers, a problem that’s been blamed for slowing the ride sharing company’s market share.
“Uber’s drivers are working harder than ever to make our cars safer and more comfortable for everyone.
The reality is, Uber doesn’t always tell the truth,” Kalantick wrote in his blog post, which was shared by other senior executives and investors.
Uber will announce an investor presentation on Friday, according to the company.
The company also will release a financial outlook on Wednesday.