Uber is increasing its focus towards short inner-city rides, now investing in bikes and scooters.
"During rush hour, it is very inefficient for a one-ton hulk of metal to take one person 10 blocks," said Khosrowshahi. "We're able to shape behavior in a way that's a win for the user. It's a win for the city."
In April, Khosrowshahi also authored a blog post describing alternative ridesharing efforts, such as rentals of its JUMP pedal-assist electric bikes and its partnership with transit ticketing company Masabi to book and show public transit tickets on the Uber app for longer journeys.
Uber's latest move immediately raised eyebrows amongst its drivers, who claim bikes and scooters would cut into their profitability. In classic PR fashion, Uber is advising drivers it will not take longer, more profitable trips as a result.
Additionally, it acknowledged it will suffer a short-term drop in profitability with a lesser cut from passengers on shorter rides.