Uber’s CEO says the company is “recession-resistant” and sees no job cuts

Published: June 10, 2022
Updated: June 10, 2022
Uber's CEO says the company is “recession-resistant

Uber’s CEO says the company is recession-resistant

Uber CEO Dara Khosrowshahi stated that the firm is “recession-resistant” and does not see the need for job layoffs.

Uber Technologies Inc. Chief Executive Officer Dara Khosrowshahi stated that the company is “recession-resistant” and does not see the necessity for job layoffs, despite sector volatility and the threat of a global economic slump looming larger than know-how firms.

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“The sense on the street is that things are pretty robust, and spending on expert services is still fairly strong,” Khosrowshahi said during an interview at the Bloomberg Technologies Summit on Wednesday.

The upbeat tone comes after Khosrowshahi told the staff in May that the ride-hailing company will “see choosing as a privilege and be thoughtful about when and when we include headcount.” Lyft Inc., a competitor, has announced plans to dramatically limit hiring and save costs.

The global financial turmoil has posed an extra hurdle for Uber’s ride-hailing business, which has been in decline since Covid-19. Unlike Lyft, Uber was able to rely on its food delivery service, which increased as home-certain customers demanded more takeout. 

Even as indoor eating has resumed, restaurant supply has remained mostly stable, a benefit for Uber Eats and competitor DoorDash Inc. As Khosrowshahi guides the company away from Covid, a crucial strategy has been to leverage the surge in delivery by expanding into other categories like food, alcoholic drinks, and grocery, and transforming the Uber rides program into much more than simply ride-sharing.

Uber

Uber Charter, a service that allows users to book shuttles and buses for large groups directly from the app, was launched last month. The San Francisco-based company recently unveiled Uber Vacation, which combines flight, hotel, and restaurant bookings and allows people in the United States and Canada to plan rides for each leg of their journey. In the United Kingdom, Uber is testing a feature that allows customers to book long-distance trips using the app.

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Even as demand for trips has gradually increased, both Uber and Lyft have failed to attract sufficient drivers to their platforms. The mismatch has resulted in stubbornly high fares and extended holdout periods for consumers. After spending hundreds of millions of pounds last year to tempt drivers back, a surge in fuel costs as the Ukraine crisis broke out delivered a setback to those efforts just as suppliers were rolling down payments.

Uber

Khosrowshahi claimed that driver supply increased by 78 percent in May compared to the previous year, but the company would extend a fuel levy on trips in an effort to alleviate the burden of high gasoline prices on drivers’ consider-house expenditures.

“As we see our sessions increasing, client demand increasing, and supply increasing, essentially the market will begin to develop into greater stability,” Khosrowshahi added. “There will be substantially less of a rise, and prices should moderate.”

In the job interview, Khosrowshahi stated that Uber will want to sell its about 11% investment in Didi Global Inc., valued at 1.4 billion as of March 31, when the Chinese ride-hailing company relists in Hong Kong. Didi received shareholder approval to delist from the New York Stock Exchange after an 11-month struggle that wiped away around $70 billion of its market value at one point and transformed the ride-hailing giant into a symbol of China’s digital crackdown.

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