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

Uber Technologies, Inc 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 DASH to Lyft Inc 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.
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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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