Uber CEO Dara Khosrowshahi said savings from the company's recent layoffs could be reinvested into lower prices for riders. Earlier this month, the rideshare company said it was eliminating 10% of its workforce, or about 3,300 people, in its largest round of cuts since the pandemic. Speaking at the Goldman Sachs Communacopia + Technology Conference, Khosrowshahi said Uber will take those savings and reinvest them back in the business, lowering prices, improving selection, and continuing to invest in its growth program. He also said Uber's commercial insurance costs, which had increased by more than 50% per ride in the U.S. mobility business over the past few years through the first quarter of 2025, have now reversed, and some of those insurance savings are being reinvested into lower consumer prices. Those savings, combined with a barbell strategy that uses excess margins from higher-end products like Uber Black to fund lower-cost offerings, could mean cheaper rides or more ways for customers to save through special offers such as the Wait & Save program. Shares of Uber jumped nearly 2% after the layoffs were announced, though the stock is down about 12.5% year-to-date amid analyst concerns over competition from autonomous vehicle companies, including Waymo's plan to offer rides through its own app alongside Uber starting in 2028.
Uber Technologies IncUber plans to reinvest layoff and insurance savings into lower rider prices, funding cheaper rides via its barbell strategy.
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