Uber hits the brakes on spending

Purse strings are tightening as the ride-hailing company commits to a hiring slowdown.   

Taxi trade-offs 

As the world comes out the other side of the Covid-19 pandemic, one of the big questions on many people’s lips is: Where have all the Uber drivers gone? With huge surges in demand, but fewer drivers in supply, things aren’t looking pretty for the ride-hailing company that has long been sitting at the top of the taxi tree.  

In the face of a tightening labor market and tech stocks plummeting, the Uber CEO, Dara Khosrowshahi, has dished out a memo to workers outlining plans to claw back some cash. Now, corporate hiring will be treated as a “privilege”.  

The lean, mean, Uber machine 

Khosrowshahi’s memo to Uber staff suggests that the company could be looking to freeze, or possibly reduce staff numbers in a bid to become a more streamlined firm. Cuts will not only hit recruitment, but marketing and incentive spending too. And after reporting a $5.9 billion loss in Q1, it’s high time that the belt was tightened.  

It’s not quite a rescue mission yet, but Uber’s stock price is down more than 40% in the year-to-date. So, with Khosrowshahi’s target of “meeting the moment” on the horizon, it’s clear that the ‘moment’ is now.