Uber CEO Sees No Sign Of Weakness, Does Not Look To Downsize Like Peers

Anusuya Lahiri
2 min read
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In this article:

  • Uber Technologies, Inc (NYSE: UBER) did not look to downsize employee strength, even though competitors slashed staff to deal with an uncertain economic outlook, CEO Dara Khosrowshahi said.

  • Rivals from DoorDash Inc (NYSE: DASH) to Lyft Inc (NASDAQ: LYFT) downsized strength to cope with the macro headwinds.

  • “No, we’re in a good place,” Khosrowshahi told Bloomberg News after speaking at the Economic Club of Chicago.

  • Also Read: Uber System Breach Culprits Are Likely The Ones Behind Microsoft, Nvidia And Okta Hack

  • Khosrowshahi has said the company took a more conservative stance on hiring and other investments.

  • In 2020 Uber dismissed more than 6,000 employees, or about 25% of the workforce, at the height of the pandemic.

  • “We’re seeing zero signs of weakness,” Khosrowshahi said at the event.

  • He added that Uber has benefited from a shift in consumer spending from retail to services.

  • Khosrowshahi was optimistic about the supply of drivers on the platform, despite a protracted shortage that has raised fares and wait times, and said that periods of economic uncertainty typically spur people to seek out side hustles in ride-hailing or food delivery. “Our driver base has increased substantially,” he said.

  • Uber reported third-quarter FY22 revenue growth of 72% year-on-year to $8.34 billion, beating the consensus of $8.12 billion.

  • Revenue from Mobility grew to $3.82 billion (+73% Y/Y), Delivery was $2.77 billion (+24% Y/Y), and Freight at $1.75 billion (336% Y/Y).

  • Uber generated $358 million in free cash flow.

  • In November, Lyft shared plans to downsize by 13% and hive off its first-party vehicle business.

  • DoorDash announced it would cut 1,250 jobs to rein in expenses.

  • Price Action: UBER shares traded lower by 0.25% at $28.27 premarket on the last check Friday.

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