This new development follows a recent pattern of declines in tech stocks. Khosrowshahi also mentioned that various company ventures like UberEats and UberFreight could use more growth.
These new changes to the company come as the US economy is reeling. Already, economists are letting the public know about a probable 2023 recession. Naturally, companies want to protect themselves, their investors, and their bottom lines.
Similar dynamics at Lyft
After this announcement from Uber, company shares saw an over 11% decline. Lyft, meanwhile, is in a similar boat, as its shares recently fell by over 9%.
Lyft, however, is going to take a different approach as the market shifts. This rideshare company is actually moving to increase expenditures in order to get more drivers on the beat.
High gas prices are also a likely factor in the issues facing Uber and Lyft. Since increases in gas costs, some drivers have stopped using these rideshare companies for work.
However, for what it’s worth, both Lyft and Uber implemented modest fuel surcharges that riders pay per trip to make things easier for drivers.
