Gig Workers Uber Ceo Says Company Will Start To Treat Hiring As A Privilege

Following its earnings release, Uber CEO Dara Khosrowshahi said the company would slow down its hiring to address a “seismic shift” in investor sentiment, according to reports.

                By                    Yaёl Bizouati-Kennedy                

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“After earnings, I spent several days meeting investors in New York and Boston,” Khosrowshahi said in an email to employees sent May 8, obtained by CNBC. “It’s clear that the market is experiencing a seismic shift and we need to react accordingly.”

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In April, the Nasdaq had its worst monthly performance since Oct. 2008, bringing its losses for the month to more than 13%, according to The Wall Street Journal. The WSJ added that the index is down 21% in 2022, its worst start to a year on record.

In turn, Uber said that it will take several steps, including cutting down on marketing and hires, CNBC reported.

“We have to make sure our unit economics work before we go big,” Khosrowshahi said in the email. “The least efficient marketing and incentive spend will be pulled back.”

“We will treat hiring as a privilege and be deliberate about when and where we add headcount,” he added. “We will be even more hardcore about costs across the board.”

On May 9, Uber was down 3% in pre-market trading.

Ives added Uber’s cross-platform capabilities (such as Uber Eats) are proving to be a differentiating factor right now, both on the consumer side and the driver/courier side, and is helping it navigate the COVID-19 rebound more efficiently.

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“The stock continues to be tied at the hip perception-wise with Lyft with the Street viewing Uber/Lyft as the “Starsky and Hutch” of ridesharing in tandem. That said, this Uber sell-off is a complete overreaction in our opinion and we would be buyers at current levels,” he added.