Uber's CEO says you could see lower ride prices as a result of its layoffs
Uber CEO Dara Khosrowshahi announced that the company plans to lower ride prices by reinvesting savings from recent corporate layoffs and reduced insurance costs. The company aims to use these financial efficiencies to improve service selection and maintain growth.
Why it matters
This highlights how corporate restructuring and cost-cutting measures can directly impact consumer pricing in the gig economy.
Uber riders can expect lower prices due to savings from layoffs and insurance costs, CEO Dara Khosrowshahi said. Chip Somodevilla/Getty Images Uber is using some of the money it saved from laying people off to cut ride prices. Uber will also use savings from lower insurance costs to reduce prices, CEO Dara Khosrowshahi said. Uber cut about 10% of its corporate roles, or about 3,300 people, last week. Lower ride prices could be coming to Uber after the company's recent layoffs. CEO Dara Khosrowshahi pointed to lower prices as one way that Uber plans to use the money it's saving from laying off 10% of its corporate workforce, or about 3,300 people. The company announced the job cuts earlier this month.
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