The Clap
In a memo sent to Uber (NYSE: UBER) employees, CEO Dara Khosrowshahi vowed to cut back on marketing & incentives, & treat corporate hiring as a “privilege”.
Why?
Uber has had a tough time attracting drivers recently, especially with soaring gas prices. Like almost all tech stocks, Uber is far from its pandemic highs & is almost 50% down YTD.
Uber’s not alone
Other tech companies like Meta & Robinhood have also announced cutbacks in hiring.
Why this matters
Although Uber is serving “multi-trillion dollar markets,” the company is still not profitable. Khosrowshahi pointed out that Uber’s ”unit economics work” before going big.
Claps Class
Unit economics measures how much profit (or loss) a company makes from selling one unit of its service or product.
