Uber is ‘Recession Resistant’ and Doesn’t Need Cuts, Says CEO

Uber is ‘Recession Resistant’ and Doesn’t Need Cuts, Says CEO

Dara Khosrowshahi told employees the company would treat “hiring as a privilege”

the CEO of UberDara Khosrowshahi, said that the company is “recession resistant” and sees no need for job cuts, even with market volatility and the prospect of a global recession looming over tech companies.

“The signal we have from the streets is that things are going well and spending on utilities remains pretty robust,” Khosrowshahi said in an interview Wednesday at the Bloomberg Technology Summit.

In May, Khosrowshahi told employees that “we will treat hiring as a privilege and will be careful about when and where to increase the team.” Rival Lyft also said it plans to significantly reduce hiring and cut costs.

Global economic uncertainty has brought yet another challenge to Uber’s urban mobility business, which has collapsed during the pandemic. Unlike Lyft, Uber was able to rely on its food delivery platform, which tripled as customers stuck at home placed more orders.

Food delivery has been resilient, even as restaurant trips resume. One key strategy has been to take advantage of the food delivery boom to expand into other categories such as convenience items, alcohol and supermarkets.

Last month, Uber introduced Uber Charter, a bus booking service for large groups directly in the app. The San Francisco-based company also launched Uber Travel, which compiles flight, hotel and restaurant reservations and allows people in the US and Canada to book trips for every step of their itinerary. In the UK, Uber is testing a service to let customers book long-distance rides on the app.

Even as demand for rides has slowly recovered, Uber and Lyft have struggled to attract enough drivers to their platforms. This has led to higher fees and longer wait times for customers.

After spending hundreds of millions of dollars last year to lure drivers back, rising gasoline prices from the war in Ukraine derailed those efforts as companies slashed bonuses.

Source: Bloomberg

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