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Uber CEO Dara Khosrowshahi

Uber CEO Dara Khosrowshahi dropped by the Acquired studio for an Eats delivery, so we broke out the cameras and asked him to hang out for a wide-ranging conversation. :) We talk about his 20 years working with Barry Diller, starting his career at Allen & Company, how the Uber CEO search process ACTUALLY went down… and oh yeah, the massive transformation that’s happened at Uber over the past few years. When Dara took over the company it was bleeding huge sums of cash, losing share to competitors and embroiled in one of the biggest corporate controversies in recent memory. Fast forward to today and it’s turned cashflow positive while also having tripled revenue to over $30B (on $120B in GMV) and solidified its rideshare dominance in the US. And in perhaps the biggest change, it’s done it all while staying out of the headlines. Tune in! ACQ2 Show + LP Program: Subscribe to our interview show, ACQ2! https://pod.link/acquiredlp Become an LP and support the show. Help us pick episodes, Zoom calls and more. https://acquired.fm/lp Sponsors: Thanks to our fantastic partners, any member of the Acquired community can now get: 20% off Common Room’s Team plan for 2023 https://bit.ly/acquiredcommonroom Up to 10% off your first year of business insurance with Vouch https://bit.ly/acquired-vouch A free trial of PitchBook + links to research reports! https://bit.ly/acquiredpitchbook Links: Ben & David on My First Million https://pod.link/1469759170/episode/dcec340c735d9bb01f08d4508f7c5caa Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions. © Copyright ACQ, LLC

David RosenthalhostBen GilberthostDara Khosrowshahiguest
Jun 12, 20231h 37mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Dara Khosrowshahi on turning Uber into a disciplined platform company

  1. Dara Khosrowshahi recounts formative career moments—from Allen & Company and Barry Diller to leading Expedia through intense competitive lessons against Booking.com—and how those experiences shaped his operating style at Uber.
  2. He explains Uber’s evolution since IPO day: divesting speculative bets, integrating Mobility and Eats teams, building compounding cross-side flywheels, and pushing the company toward sustained profitability rather than growth-at-all-costs.
  3. The conversation details underappreciated mechanics of Uber’s turnaround, including the CEO recruitment process, the painful post-IPO shareholder-base reset, and the high-stakes SoftBank governance deal that eliminated super-voting control.
  4. Dara closes by emphasizing Uber’s future depends on being the best platform for earners (drivers/couriers), raising the “duty of care” for people who spend hours daily on the app, and keeping take rates low through operational efficiency.

IDEAS WORTH REMEMBERING

5 ideas

Decisive conviction during crises can create long-term advantage.

Dara describes IAC keeping the Expedia deal intact after 9/11 despite a material-adverse-change option; the decision stabilized the business and proved prescient as travel demand normalized.

Great leaders seek the source of truth, not filtered summaries.

Barry Diller’s habit of pulling junior analysts into the room reflects a bias toward “unvarnished reality,” a pattern Dara credits for better decisions and stronger organizations.

Marketplace winners often win through supply-side focus and execution discipline.

Booking.com’s relentless focus on hotels and supply density improved conversion and paid acquisition efficiency; Dara applies the lesson at Uber by prioritizing driver/courier supply and liquidity.

Cross-business flywheels take years to become visible externally—then compound.

Uber’s rides→Eats demand flow and Eats→rides supply recruitment required significant “machinery” (surfaces, targeting, internal pricing), but after multiple years the benefits show up as margin outperformance.

Uber’s prices aren’t simply ‘because profitability’—they largely reflect labor supply-demand and inflation.

Dara argues the marketplace sets a spot price for labor; when driver supply lags, prices rise, and when supply catches up, year-on-year prices can decline.

WORDS WORTH SAVING

5 quotes

“If there isn’t travel, there isn’t life.”

Dara Khosrowshahi (recounting Barry Diller during the post-9/11 Expedia decision)

“Dara, since when is life about having fun? It’s about having impact.”

Daniel Ek (recounted by Dara Khosrowshahi)

“The middle is where you go to die.”

Dara Khosrowshahi (on media/publishing strategy between niche and scale quality)

“We’re not setting prices. The marketplace is setting its own price.”

Dara Khosrowshahi (citing Uber’s economist perspective)

“You don’t come to Uber for easy… It ain’t fun, but people love being at the company.”

Dara Khosrowshahi

Expedia acquisition during 9/11 (MAT clause decision)Barry Diller leadership lessons: “unvarnished truth”Booking.com vs. Expedia: supply-led execution and focusUber’s post-pandemic integration: Mobility + Eats flywheelSupply-led growth, pricing dynamics, and labor inflationCEO recruitment story and board pitch centered on profitabilityGovernance/shareholder transitions: SoftBank, super-vote removal, post-IPO turnover

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