>> Uber's latest problem? A boardroom brawl spilling over to shareholders trying to answer one question as they look for a replacement for ousted CEO Travis Kalanick. What is Uber worth? Turns out the answer is the answer is not so simple. Uber's rise to what backer's call a once in a generation game changer in urban transportation comes with a little known secret, the ride-hailing app is covering 50 to 60% of the true cost of each ride.
Reuters Silicon Valley correspondent Heather Somerville.>> Because Uber has been subsidizing rides for so long, it's been bleeding cash. It's losses are upward of three billion last year. That is a real problem now that Uber is under intense scrutiny by its board and shareholders to really get into shape and get into more financial controls and also as repairs for initial public offering in the near future.
>> Finding a way to cut those loses and proof Uber's worth the $68 billion valuation it currently hold won't be easy.>> The new CEO whoever Uber does hire is gonna have a whole lot of problems to solve, this includes a toxic workplace culture, in fighting between shareholders and board members' reputational issues.
But adding on to that pile is this more fundamental issue of Uber needs to be a real business, it has to make money, and this new CEO's gonna have to figure out that challenge.>> If the new CEO cuts subsidies prices would go up potentially turning off passengers and slamming the brakes on Uber's spectacular growth.
And it's not just the way Uber handles that which could tilt the company's true worth. It's been handing out bonus checks to drivers as big as $5,000. If that incentive dries up, drivers could flee causing wait times to spike. And that's not good for Uber's business either.