Uber's Top-Level Executive Carousel: CFO Chai To Exit, Latest In A String Of Departures

Uber Technologies Inc (NYSE:UBER) is bracing for a shift in its top brass with Chief Financial Officer Nelson Chai planning his exit — the most significant executive departure since the ride-hailing giant’s 2019 IPO.

Chai, a seasoned financial veteran, had been instrumental in navigating Uber’s turbulent journey since its IPO, according to a Bloomberg report. He was recruited in 2018 by Uber CEO Dara Khosrowshahi to spearhead Uber’s public offering and rectify the firm’s balance sheet, filling a CFO vacuum that had been there for more than three years.

The company marked major deals under his watch, including the $2.65 billion acquisition of Postmates in 2020 and the $2.25 billion purchase of logistics operator Transplace in 2021.

The soon-to-be former CFO guided Uber to its first quarter of positive adjusted EBITDA in 2021, a clear indication to investors that the company was moving beyond its growth-at-all-costs phase.

Chai’s exit isn’t an isolated event, as it comes on the heels of several high-profile departures over the past year. Dennis Cinelli, the head of Uber’s rides business in the U.S. and Canada, is among the top executives who have recently left the company. Cinelli had been with Uber since 2016 and held pivotal roles in its finance team.

Cinelli left Uber to join machine learning platform Scale AI as CFO.

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Uber’s top-level churn isn’t limited to Cinelli. Raj Beri, who led Uber’s grocery and new verticals, transitioned to the telemedicine platform GoodRX Holdings Inc (NASDAQ:GDRX) as COO in May 2022.

Similarly, Jeremy Fine, Uber’s director of corporate development, also exited last year, closely following his superior, Madhu Kannan, the global head of corporate development.

The executive turnover in the past 12 months isn't reflected in its stock price, as it has seen gains north of 106% over the same period.

Khosrowshahi has made repeated attempts to assuage investors and employees, touting Uber’s robust business model which was illustrated in August 2022 under Chai’s guidance when the company achieved positive cash flow for the first time since it was founded.

However, assurances and positive cash flow haven’t reversed market sentiment just yet, with Uber’s shares lingering around the $43.85 level, just below its May 2019 $45 IPO price.

UBER Price Action: Uber shares are up 3.53% at $44.30 Tuesday afternoon.

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