Kara Swisher: It’s ‘Not A Great Time’ For Uber’s CEO

Ride-hailing company Uber Technologies Inc (NYSE: UBER) lost its license to operate in London, and this represents another setback under the leadership of CEO Dara Khosrowshahi, according to Recode co-founder Kara Swisher. 

‘Not A Great Time’ For Khosrowshahi 

Khosrowshahi replaced Uber co-founder Travis Kalanick as CEO in 2017, and one of his first acts was to fly to London to “assuage critics,” Swisher said on CNBC’s “Squawk Alley” Monday.

It is now especially “problematic” for Uber if it loses the London market, which is among the top revenue-generating cities outside of the U.S., Swisher said. 

The problem for Khosrowshahi is that Uber’s latest London woes follows multiple “stumbles,” the tech journalist said.

Most recently, he gave an “unfortunate interview” with Axios where he “misspoke” about the murder of Saudi journalist Jamaal Khashoggi, she said.

What’s more obvious and important to investors is that the economics of Uber remain concerning, Swisher said. 

“It’s not a great time for him as a CEO.” 

A Broader Trend In Tech

Imran Khan, the CEO and co-founder of Verishop, said on CNBC Monday that Uber’s problems are consistent with one broader theme.

As the tech economy continues to grow, there will obviously be more scrutiny from government regulators worldwide, he said. 

“I think it’s a new way of life.” 

Potential ‘Nightmare’

Uber faces a potential “nightmare” scenario if it is blacklisted from London, with a financial impact that could be as much as a 4% top-line hit, Wedbush analyst Dan Ives said on CNBC’s “Squawk Box.”

Uber may even be guilty of being caught “flat-footed” by London’s decision, he said.

Uber shares were down 1.42% at $29.15 at the time of publication Monday. 

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Photo courtesy of Uber.