Uber CEO says the company may actually benefit from rising inflation
The August inflation report isn’t all bad for companies like Uber, which said its supply side may actually be benefitting from the inflationary environment.
- The August inflation report isn’t all bad for companies like Uber, which said its supply side may actually be benefitting from the inflationary environment.
A key August inflation report sent stocks tumbling Tuesday after the index gained 0.1% for the month despite falling gas prices. But the report isn’t all bad for companies like Uber, which said its supply side may actually be benefitting from the inflationary environment.
CEO Dara Khosrowshahi told CNBC’s TechCheck Monday that as expenses rise and people are paying more for essentials like groceries, they are also signing up to drive for Uber.
“If anything, 72% of drivers in the U.S. are saying that one of the considerations of their signing up to drive on Uber was actually inflation,” he said.
Khosrowshahi said inflation is “everywhere,” but that Uber is not seeing any signs of weaknesses as a result.
The unexpectedly high August report is one of the last the Fed will see before its Sept. 20-21 meeting, and it could lead to more aggressive interest rate hikes for longer than investors anticipated.
Uber shares were down more than 3% in mid-day trading, amid a broader plunge in tech stocks that sent the tech-heavy Nasdaq index down almost 4%.
