Page 24 - ARUBA TODAY

Friday 2 June 2017 BUSINESS
A24

Uber posts $708 million loss and says finance head left

HONG KONG (AP) — Uber than the $991 million loss Uber has struggled . ing with an Uber driver was mother was killed in a boat-
posted a $708 million loss it posted in the previous The San Francisco compa- made public. And the Jus- ing accident.
in the most recent quar- quarter. It had revenue of ny recently lost its head of tice Department is prob- The company this week fol-
ter and said its head of fi- $3.4 billion, up 18 percent communications, president ing allegations that Uber lowed through on threats
nance is leaving the com- from the final three months and other senior execu- used an app to thwart au- to fire star autonomous-
pany, the latest executive of last year. tives as it faces allegations thorities who were trying to car researcher Anthony
to depart in what has been Even before the an- of sexism and sexual ha- determine if the company Levandowski, whose hiring
a very tough year to date. nounced departure of rassment in the workplace. was following local regula- touched off a bitter trade-
Uber told The Associated head of finance Gautam CEO Travis Kalanick had to tions. secrets fight with Waymo,
Press Thursday that its first- Gupta, which the compa- apologize earlier this year Gupta’s departure comes the former self-driving car
quarter loss was narrower ny announced Thursday, after video of him argu- just days after Kalanick’s arm of Google.q
Investors pick Tesla’s promise over GM’s steady profits

By TOM KRISHER Yet, as both CEOs face more than tenfold to $335. The huge investment need- Google, had a 22 percent
DEE-ANN DURBIN shareholders for annual Wall Street now values ed to build vehicles yields margin.
AP Auto Writers meetings Tuesday, it is Barra Tesla at about $55 billion, low profit margins com- Although it’s an automak-
DETROIT (AP) — When Gen- who must explain to skepti- compared to around $50 pared with tech compa- er, Tesla started in the tech
eral Motors CEO Mary Barra cal investors why GM’s fu- billion for GM. nies that make software or bucket and remains there
introduced the Chevro- in the eyes of investors and
let Bolt at the CES gadget buyers, Ramsey says.
show last year, she took a Tesla’s electric cars are the
shot at Tesla. envy of the industry, and its
Buyers can be confident semi-autonomous technol-
because Chevy has 3,000 ogy is among the most ad-
U.S. dealers to service the vanced on the road. Musk
new electric vehicle, she says Tesla’s California as-
said. The implication was sembly plant— which used
that Tesla, with just 69 ser- to be GM’s — will soon be
vice centers nationwide, among the most efficient in
can make no such promise. the world. And it’s branch-
The uncharacteristic insult ing into areas with potential
from Barra was designed for bigger returns, including
to highlight the difference solar panels, energy stor-
between 108-year-old age and trucking.
GM and Tesla, a disruptive “Tesla is absurdly overval-
teenager. It also acknowl- ued if based on the past,
edged a budding rivalry but that’s irrelevant. A
that could help determine stock price represents risk-
whether Detroit or Silicon adjusted future cash flows,”
Valley sets the course for Musk tweeted in April.
the future of the auto in- Elon Musk, CEO of Tesla Motors Inc., introduces the Model X car at the company’s headquarters Still, Musk can’t risk any mis-
dustry. The tale of the tape in Fremont, Calif. Tesla and General Motors have a budding rivalry that could help determine steps as Tesla pivots from
favors GM. It has made bil- whether Detroit or Silicon Valley sets the course for the future of the auto industry. Right now Wall a niche manufacturer of
lions in profits since return- Street is favoring the upstart led by flamboyant Elon Musk to the established icon headed by the 84,000 high-priced cars per
ing to the public markets more restrained Mary Barra. (AP Photo/Marcio Jose Sanchez) year. The Model 3 sedan,
in 2010. GM got the Bolt, a Tesla’s first mainstream car,
$36,000 car that goes 238 is due out later this year,
miles per charge, to mar- ture is as bright as Tesla’s. Despite efforts to paint cell phones, says Michael but previous launches have
ket before Tesla’s Model 3. GM’s stock is trading themselves as technology Ramsey, an analyst with been plagued with delays.
Tesla, the 14-year-old com- around the $33 price of its companies, automakers Gartner. GM’s net profit Tesla has yet to prove it can
pany led by flamboyant initial public offering seven can’t shake their giant, margin in 2016 was 5.7 build high-volume vehicles
CEO Elon Musk, has never years ago. During that time, capital-intensive global percent. By comparison, with quality and reliability,
posted an annual profit. Tesla shares have soared manufacturing operations. Alphabet Inc., parent of as GM does. q

American Express to solely take over the Hilton credit card

By KEN SWEET ing Jan. 1, 2018. Currently ing Hilton-branded cards use. It’s a lucrative business co-branded card. It’s also
AP Business Writer Hilton has credit cards is- simultaneously since then. for companies like Ameri- not clear whether AmEx
NEW YORK (AP) — Ameri- sued by Citigroup and Co-branded credit cards can Express, will be able to hold onto
can Express will become AmEx. are those for which a ma- who has co-branded cards Starwood, which it was pur-
the exclusive credit card Hilton Hotels is one of Amer- jor retail or travel company with Hilton, Delta Air Lines, chased by Marriott who
issuer for Hilton Hotels, the ican Express’ oldest rela- teams up with a bank to Starwood Hotels and Mer- has its own co-brand card
company said Thursday, tionships. Hilton started tak- issue the cards, typically cedes-Benz. with JPMorgan Chase.
a major success for a busi- ing American Express cards aimed at increasing cus- But American Express has When Hilton announced
ness that has been facing in the late 1960s and the tomer loyalty. seen increased competi- last year that it wanted to
increased competition. two companies issued its Most major retail or travel tion for co-branded credit move to a sole issuer of its
The New York-based credit first co-branded credit card companies have some sort card partnerships, losing its credit card, it was expect-
card company will be the in 1995. In 2000, Hilton add- of co-branded card nowa- exclusive arrangement with ed AmEx would want to
sole issuer of the Hilton co- ed Citi as an issuer, and the days, which earn reward Costco to Citigroup last hold onto Hilton after losing
branded credit card start- two banks have been issu- points or cash back for their year, as well as its JetBlue the other partnerships.q