Key facts
- Uber CEO Dara Khosrowshahi said savings from layoffs and insurance costs could lead to lower ride prices.
- The company laid off 10% of its corporate workforce, approximately 3,300 people.
- Uber plans to reinvest savings into lowering prices, improving selection, and investing in growth.
- Khosrowshahi made these remarks at the Goldman Sachs Communacopia + Technology Conference on Thursday.
Uber riders may soon see lower prices as the company aims to leverage savings from recent layoffs and reduced insurance costs, according to CEO Dara Khosrowshahi. Speaking at the Goldman Sachs Communacopia + Technology Conference on Thursday, Khosrowshahi explained that the company intends to "reinvest" the money saved from cutting 10% of its corporate workforce, or about 3,300 employees, back into the business. This reinvestment is expected to manifest as lower prices for rides, an improved selection of services, and continued investment in growth programs.
In addition to workforce reductions, Uber is also planning to allocate savings from insurance costs toward lowering ride prices. Khosrowshahi suggested this strategy would help retain riders on the platform. These moves come as Uber has consistently surpassed analyst expectations in recent quarterly earnings reports. The company's stock saw a modest increase of about 2% on Thursday following a regulatory filing that revealed Khosrowshahi had purchased an additional $10 million worth of Uber stock. Khosrowshahi characterized the timing of the layoffs as strategic, stating the company was in a "position of strength" and did not believe in delaying such decisions.