By Tanvi Mehta
BENGALURU (Reuters) – Uber will slow hiring and cut spending on marketing and incentive activities, CNBC reported on Monday, citing a letter from Chief Executive Dara Khosrowshahi.
The commuter company’s announcement comes after Facebook owner Meta said last week that it would slow the growth of its workforce.
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Khosrowshahi said Uber’s change in strategy was a necessary response to the “seismic shift” in investor sentiment, according to the CNBC story.
“The least efficient spending on marketing and incentives will be withdrawn. We will treat hiring as a privilege and will be deliberate about when and where to increase the number of employees,” Khosrowshahi said, according to the report.
Uber said last week its driver base is up after the pandemic and expects that to continue without having to invest heavily in incentives, a contrast to rival Lyft, which has said it needs to spend more on labor.
The company will now focus on achieving profitability based on free cash flow rather than Ebitda. The carpooling giant expects to generate “significant positive cash flows” for the year, according to its latest earnings report.
Khosrowshahi added that the food delivery and freight business needs to grow faster, according to CNBC.
Uber did not immediately respond to a request for comment.