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Uber Technologies, Inc. (NYSE: UBER) and Wakefern Food Corp. today announced that customers can now shop more than 375 Wakefern supermarket locations across the

Uber has invested $10 million in Indian fleet management startup Carrum Mobility in a Series B round as the ride-hailing giant increases its reliance on large fleet operators to supply vehicles and drivers in the South Asian nation.

The new investment values Carrum at ₹16 billion (about $168 million) post-money, founder and CEO Karan Jain told TechCrunch, up from a post-money valuation of ₹6 billion (around $63 million) after Uber invested $7 million in the firm in January. Jain said Uber now owns a stake in the “mid-teens” in Carrum.

A former McKinsey consultant who previously founded car-rental startup Revv, Jain started Carrum in 2024 after Indian automotive marketplace CarDekho acquired his earlier company in 2023. CarDekho was also Carrum’s first investor and remains a backer.

Carrum now owns about 5,100 vehicles across Bengaluru, Hyderabad, Mumbai, Pune, Delhi and Kolkata, and has onboarded more than 18,000 drivers. The startup is currently generating annualized revenue of about ₹4.3 billion (around $45 million), Jain said.

The startup supplies vehicles to Uber in India for its entry-level Uber Go, Premier, and the premium Black tiers. About 70% of its fleet are hatchbacks used for Uber Go, around 10% are sedans for the Premier tier, and about 20% are SUVs, largely deployed on Uber Black. Carrum is Uber’s largest fleet partner for Black in India, Jain added.

Unlike individual drivers who typically own or finance their vehicles, operators such as Carrum can put thousands of cars on Uber while recruiting and training drivers.

The business model may be growing important for premium offerings. Jain said Uber Black in India operates exclusively through fleet partners, as the service requires tighter control over vehicles, drivers, and service standards. He also said Uber’s preference for fleet operators has become part of its supply strategy in other markets.

Uber’s relationship with Carrum goes beyond a typical commercial arrangement, Jain said. The two companies are working on new product launches and planning how much vehicle supply to add to the ride-hail giant’s platform.

Carrum is not exclusive to Uber, but Jain said his startup currently has no intention of supplying vehicles to rival ride-hailing platforms.

The startup generated revenue of about ₹2.33 billion (around $24.5 million) in the year ended March 2026, up from around ₹620 million (about $6.5 million) a year ago, and net profit rose to about ₹70 million (around $736,000) from ₹35 million (about $368,000), Jain said.

Carrum typically finances its vehicles with debt while funding about 10% to 15% of their purchase price upfront, Jain said. The firm’s borrowing costs, he stated, have fallen about 40% over the past year, which he attributed to its stronger balance sheet, profitability and Uber’s backing.

Over the next 12 months, Carrum plans to more than double its fleet to about 11,000 vehicles, Jain said. The startup also plans to use the new capital to expand into more cities, strengthen its technology platform, and hire as it scales.

Ultimately, Carrum’s ambitions extend beyond India, Jain said, noting that the startup wants to eventually become a global fleet partner for Uber. He declined to say whether the two companies have specifically discussed expanding their partnership outside India.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal correspondent at NDTV.

You can contact or verify outreach from Jagmeet by emailing [email protected].

Uber Technologies Today

UBER

Uber Technologies

$73.06 -2.70 (-3.57%)

As of 09/8/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$65.41▼

$101.9916.06

$104.49

The market often misinterprets the structural evolution of logistics networks, pricing them on legacy models rather than future capabilities. This dynamic is currently playing out with Uber Technologies, Inc. NYSE: UBER. On Sept. 3, Uber initiated its first supervised autonomous ride-hailing service in London. By deploying all-electric Ford Mustang Mach-E vehicles powered by Wayve's AI Driver, Uber is demonstrating a clear pivot in its business model.

Rather than absorbing the heavy capital expenditures required to manufacture proprietary autonomous vehicles, Uber is positioning itself as the commercialization and distribution layer for third-party technology. This asset-light approach allows Uber to bridge the gap toward long-term autonomous margins while avoiding the risks of automotive manufacturing. Investors assessing the current valuation might notice a disconnect between the traditional human-driven logistics multiple and the highly scalable, AI-integrated hybrid network being built.

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Steering Clear of ManufacturingUnderstanding the mechanics of the Wayve partnership reveals why this strategy appeals to institutional capital. Wayve utilizes an AV2.0 approach, relying on mapless, hardware-agnostic artificial intelligence (AI) that learns from complex environments rather than relying on traditional hand-coded rules. This adaptability is critical in a regulatory and geographical maze like London, where mapping every variable is nearly impossible.

The structural advantage for Uber rests on the deliberate avoidance of hardware development. Developing self-driving cars requires billions in research, development, and manufacturing overhead. By supplying the localized rider demand and the routing network, Uber allows partners like Wayve to focus on the intelligence while original equipment manufacturers like Ford NYSE: F and Nissan OTCMKTS: NSANY handle the hardware. Over 140,000 London riders have already opted in to the service, suggesting that consumer adoption barriers may be lower than previously anticipated.

This strategy extends well beyond a single city. Uber participated in Wayve's recent $1.5 billion funding round, aligning financial interests to secure global scaling rights across 12 planned markets. With upcoming integration plans for the Nissan LEAF and partnerships with over 30 external autonomous developers, Uber is on track to facilitate autonomous trips in up to 15 cities by the end of 2026. This allows Uber to scale its autonomous offerings globally without the traditional drag of severe capital expenditures.

Refueling With Free Cash FlowAn asset-light model relies heavily on network density and the ability to generate liquidity without internal cash burn. Recent financial disclosures highlight how this transition is already reflected in profitability metrics. During the second quarter of 2026, Uber generated about $2.8 billion in free cash flow and reported gross bookings of nearly $58.0 billion. This represents a 24% year-over-year increase in bookings, providing the exact liquidity framework required to fund external artificial intelligence integrations.

The ongoing shift toward third-party integration directly supports expansion of the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. Adjusted EBITDA grew 33% year-over-year to $2.8 billion for the quarter, pushing the margin to 4.9%, up from 4.5% a year prior. By letting venture capital and external partners absorb the research and development costs of autonomous driving, Uber preserves its cash flow to reinvest in market share and core platform density.

This density strategy is evident in concurrent corporate actions, such as the ongoing €41.50-per-share (approx. $46) takeover offer for Delivery Hero. Acquiring complementary logistics networks widens the multi-vertical distribution funnel. A denser network of food and freight delivery creates immediate, practical deployment routes for future autonomous fleets. This allows Uber to maximize vehicle utilization rates across a 24-hour cycle, routing autonomous cars for passenger transport during peak hours and logistics delivery during off-peak times.

Valuations Ready to AccelerateCapital flows often lead retail sentiment, and the structural support for Uber rests heavily on institutional accumulation. Institutional investors currently hold roughly 80% of the public float. Over the trailing 12 months, these buyers initiated inflows of nearly $39.12 billion, far outweighing outflows of roughly $10.36 billion. Entities like the Virginia Retirement Systems hold large positions, suggesting a long-term horizon aligned with the autonomous transition.

Uber Technologies Stock Forecast Today12-Month Stock Price Forecast:
$104.49
43.02% Upside

Moderate Buy
Based on 42 Analyst Ratings

Current Price$73.06High Forecast$150.00Average Forecast$104.49Low Forecast$72.00Uber Technologies Stock Forecast Details

From a valuation perspective, Uber trades near $76 with a trailing price-to-earnings (P/E) ratio around 16.8. Compared with broader technology-sector platforms that often command multiples well above 30, the current pricing implies the market still views Uber as a human-reliant logistics business. As the percentage of autonomous trips increases, the marginal cost of routing a vehicle could fall substantially, shifting the business's unit economics.

Sell-side analysts appear to be factoring in this evolution in margins. Of 42 analysts covering Uber Technologies, Inc., 34 maintain a Buy rating, resulting in a consensus of Moderate Buy. A consensus price target near $104 suggests an anticipated upside of roughly 36% from current trading levels.

The recent London rollout serves as tangible proof of concept for the broader analyst community, validating the operational feasibility of replacing human drivers with software in highly congested urban environments.

Plotting the Next DestinationThe integration of Wayve's technology in the United Kingdom provides a clear template for how ride-hailing networks plan to achieve long-term profitability. Transitioning directly from human drivers to fully autonomous fleets carries severe regulatory and operational risks. By steadily phasing in third-party autonomous vehicles to operate alongside human drivers, Uber ensures consistent reliability while gradually lowering the overall cost per trip.

This hybrid approach de-risks the technological rollout while maintaining the supply density required to serve global demand. The combination of strong free cash flow, deep institutional backing, and an expanding global footprint of autonomous partners creates a compelling fundamental setup. Uber is positioning itself not as a car manufacturer, but as the essential operating system for global movement. Investors analyzing the shifting mobility sector might consider adding Uber to their watchlist as the market begins to factor in the long-term margin expansion associated with its software distribution capabilities.

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Tesla Inc‘s (NASDAQ:TSLA) Cybercab has finally moved from concept to commercial service, but its biggest competitor isn’t another automaker—it’s Uber Technologies, Inc. (NYSE:UBER).

While Tesla is building a vertically integrated robotaxi business from the ground up, Uber is assembling an autonomous fleet through partnerships, setting up two very different paths to the future of ride-hailing.

Tesla’s Cybercab StrategyTesla’s robotaxi ambitions center on owning the entire ecosystem. The company develops the vehicle, the autonomous driving software, and the ride-hailing platform, allowing it to capture more of the economics if the model scales successfully.

That vision is now being tested in Austin, where Tesla has launched limited public Cybercab rides using its purpose-built, steering wheel–free vehicle. The rollout is still small, but it marks Tesla’s first attempt to commercialize a robotaxi service built around a vehicle designed exclusively for autonomous ride-hailing.

Tesla CEO Elon Musk has repeatedly argued that autonomy could eventually reduce ride costs to a fraction of today’s prices by eliminating the need for human drivers. The company’s long-term thesis depends on achieving enough scale for those lower operating costs to outweigh the substantial upfront investment in vehicles and AI.

Read Next

Uber’s Robotaxi NetworkUber is pursuing a fundamentally different strategy.

Rather than building autonomous vehicles, the ride-hailing giant has positioned itself as a marketplace for robotaxis. The company has announced partnerships with multiple autonomous driving developers, giving riders access to different autonomous fleets through a familiar app., including:

Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google’s Waymo Wayve Amazon.com Inc‘s (NASDAQ:AMZN) Zoox Baidu, Inc‘s (NASDAQ:BIDU) Apollo Go and Nebius Group N.V.‘s (NASDAQ:NBIS) Avride Trending

That approach allows Uber to benefit from advances in self-driving technology without bearing the cost and execution risk of developing its own vehicles.

The contrast is already visible in Austin, where Tesla’s Cybercab service has begun operating.

Early rider comparisons shared online show Cybercab fares on some routes costing more than equivalent Uber rides, although pricing remains highly dynamic and reflects Tesla’s limited fleet size during the initial rollout. Those snapshots offer only a point-in-time comparison, not a definitive measure of long-term economics.

Read Next

What Investors Should WatchThe robotaxi race may ultimately be less about who builds the best autonomous vehicle than who controls the customer relationship.

Tesla is betting that owning the vehicle, software and platform will create a durable competitive advantage as autonomous driving matures. Uber, meanwhile, is betting that riders will keep valuing a single marketplace that offers access to multiple robotaxi providers, regardless of who manufactures the vehicles.

For investors, the key metric is unlikely to be today’s fare comparison. Instead, it will be whether Tesla can scale Cybercab production quickly enough to lower costs, or whether Uber’s asset-light platform model proves more resilient in capitalizing on the autonomous transportation market.

Read Next

Image via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Key Takeaways Uber's Delivery Hero deal could expand markets offering both mobility and delivery services from 34 to 58. UBER posted Q2 gross bookings above $58B, up 22% at constant currency, its fourth straight quarter over 20%. Uber's debt, weak share performance and expected 2026 EPS y/y fall support waiting for a better entry point. Uber Technologies (UBER - Free Report) moved a step closer to acquiring Delivery Hero when the latter’s board recommended that shareholders accept its offer. The board recently issued a statement terming Uber’s offer "fair and adequate." The acceptance period for the takeover offer ends on Nov. 5, 2026.

Under the takeover offer, Uber will pay €41.50 per Delivery Hero share, valuing the latter at approximately $14.8 billion, or $13.7 billion after adjusting for the former's existing stake. Before the offer, Uber owned about 24.77% of Delivery Hero's voting shares and had an additional 11.74% economic exposure through equity derivatives. Prosus has agreed to tender its roughly 17% stake, raising Uber's total economic interest to about 53%. The takeover would significantly increase the number of markets where Uber can offer both mobility and delivery services from 34 to 58.

Uber expects the acquisition to strengthen the global technology platform by combining it with Delivery Hero's established local brands, merchant network and delivery capabilities. The combined business is anticipated to enhance consumer choice, improve the Uber One membership proposition and provide merchants with greater demand through Uber's large user base, supported by advertising, promotional and commerce tools. AUber is denser network is also expected to increase order volumes, improve courier utilization and create additional earning opportunities for delivery partners and drivers.

With Uber’s impending acquisition of Delivery Hero taking a major step toward completion, the question is whether it is worth buying UBER stock at current prices. Let us dig deeper to find out.

Further Factors Working in Favor of UBERAV Ambitions Gain Pace: Uber is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. To this end, it has recently inked many deals. Earlier this month, Uber and British AI company Wayve have launched supervised autonomous rides in London, making such trips available in the United Kingdom for the first time. Londoners requesting UberX, Uber Electric or Uber Comfort may now be matched with a Wayve vehicle at no additional cost, with fares displayed upfront in the Uber app.

In June, Uber, in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid. The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office, pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.

Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.

Last month, Uber announced that another Chinese company, Baidu (BIDU - Free Report) , has made its fully autonomous Apollo Go vehicles are available to riders through the former’s platform in Dubai, with New Horizon Luxury Transport operating the fleet. The rollout strengthens Uber’s position in the autonomous-vehicle market and represents an important step in the global expansion of driverless transportation.

Dubai is the first launch location under the companies’ multi-year strategic partnership, which aims to deploy thousands of Apollo Go vehicles of Baidu across Uber’s worldwide network. Uber emphasized that safety remains a central priority. Baidu’s Apollo Go vehicles, like all autonomous vehicles operating through Uber’s network, must comply with its safety guidelines before entering service.

Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.

Gross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.

In the second quarter of 2026, gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup.

Segment-wise, Mobility bookings rose 22% year over year on a reported basis and 20% on a constant currency basis to $28.98 billion, supported by continued demand for rides across Uber’s global platform. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico.

Delivery gross bookings increased 26% year over year on a reported basis and 25% on a constant currency basis to $27.46 billion, while Freight bookings increased 25% year over year on a reported basis as well as on a constant currency basis to $1.57 billion. Growth across all three offerings demonstrated the breadth of the company’s platform during the quarter.

For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is roughly in line with the Zacks Consensus Estimate of $59.2 billion.

Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.

Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%.

Growth Opportunity for UBER Is Real, but so Are the RisksAgreed that Uber is benefiting from its AV-related ambitions and gross booking strength. The acquisition of Delivery Hero, if it materializes, would lead to significant expansion for Uber. However, investors should remember that it is facing some headwinds that cannot be ignored.

UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.7 billion at the end of the second quarter of 2026, which translates into a long-term debt-to-capitalization of 27.9%. This is reasonable but above the Zacks Internet-Services industry’s 11.8%. UBER’s times interest earned ratio at the June quarter-end was 15.5, which is much lower than its industry, indicating a high risk of default.

Shares of Uber have declined in single digits (% wise) so far this year, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.

YTD Price ComparisonImage Source: Zacks Investment Research

What Do Estimates Suggest for Uber?The Zacks Consensus Estimate for 2026 earnings implies a year-over-year decline of approximately 35%, while 11% growth is indicated in terms of revenues. However, the earnings estimate revision trend is impressive. Earnings per share estimate projections for the current and next quarter, and full-year 2026 and 2027 have improved over the past 60 days.

Image Source: Zacks Investment Research

How to Play UBER Stock Currently?While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the long-term outlook for the ride-hailing giant remains far from discouraging.

The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $154.74 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.

Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   

Evaluating the electric vehicles and autonomous transport sectors requires looking beyond traditional metrics such as cars produced and delivered. Wall Street now focuses on software recurring revenue and fleet utilization.

The pivot away from consumer retail sales toward commercial robotaxi fleets alters the sector's underlying fundamentals. Understanding this dynamic helps clarify the aggressive growth multiples applied to autonomous innovators versus the discounted valuations assigned to legacy ride-share companies. The recent deployment of steering-wheel-free vehicles in Austin signals a structural shift in how automotive technology is valued, bringing execution risk and regulatory timelines to the forefront.

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Driving Margins: The Cybercab Software PivotTesla Today

$354.08 0.00 (0.00%)

As of 09/4/2026 04:00 PM Eastern

$297.38▼

$498.83327.85

$401.74

This recent rollout of steering-wheel-free vehicles in Texas initiates a necessary evolution for Tesla, Inc. NASDAQ: TSLA.

For years, Tesla operated as a traditional hardware manufacturer, relying on direct-to-consumer vehicle sales to drive top-line revenue.

That model is currently facing margin compression across the industry. Recent financial data show Tesla operating with a net margin of around 3.6% and a return on equity of nearly 3.8%.

These metrics highlight the operational fatigue inherent in building and selling physical hardware in a highly competitive, capital-intensive environment.

Health Indicator for Tesla TradeSmith's Health IndicatorA long-term volatility-based measure designed for securities held 12 months or longer.

Green: Strong and healthy uptrend with normal pullbacks.

Yellow: Significant pullback but still within expected volatility.

Red: Dropped beyond expected volatility; considered unhealthy.

Yellow Zone (3d)

1-Year History

Sep 25 Dec 25 Mar 26 Jun 26 Sep 26

As of 3 days ago, TSLA's financial health entered the Yellow zone, according to TradeSmith.

The recent downgrade of Tesla's financial health into TradeSmith's Yellow zone emphasizes the short-term capital pressure required to scale new infrastructure. The Austin launch is not just a new product reveal; it is the physical deployment of a business model designed to unlock high-margin fleet revenue. A commercial robotaxi network replaces one-time hardware sales with continuous software monetization and utilization fees.

If successful, this ecosystem would fundamentally change Tesla's cash flow profile, shifting it closer to a software-as-a-service model.

The physical vehicle essentially becomes the delivery mechanism for proprietary software, allowing Tesla to capture ongoing revenue for every mile driven rather than recognizing a single transaction at the point of sale. The required capital expenditure for the autonomous-driving technology is substantial, yet the potential recurring revenue base offers a clear path out of the low-margin manufacturing cycle.

Valuation Traffic Jam: Pricing the Software PremiumUnderstanding this shift requires a close look at current market multiples and what they imply for future earnings. Tesla currently trades at a trailing price-to-earnings ratio near 326, with a forward price-to-earnings ratio approaching 400. To justify that premium, the market expects Tesla to completely disrupt the traditional logistics sector. Forward earnings projections, sitting around 56%, suggest institutional models are looking past recent earnings misses, such as the second-quarter 2026 report, in which Tesla reported about 33 cents per share versus the 50-cent estimate. The market is aggressively pricing in future cash flows from the autonomous network.

We can use Uber Technologies, Inc. NYSE: UBER as a benchmark to gauge how the market prices legacy ride-share models. Uber operates with a net margin approaching 17% and a return on equity over 43%. Despite these solid fundamentals, Uber trades at a stagnant trailing price-to-earnings ratio of about 17. The market heavily discounts traditional ride-share longevity, recognizing the existential threat posed by scalable, driverless competitors. While Uber has spent years perfecting the logistics of human-driven fleets, the structural costs of contractor payouts limit long-term margin expansion relative to a fully autonomous network.

Incumbents are well aware of this dynamic and are actively positioning themselves defensively. Uber recently launched a supervised autonomous ride-hailing service in London, using Wayve's artificial intelligence technology in a fleet of Ford Mustang Mach-E vehicles. Alongside this rollout, Uber initiated a 10% reduction in its global workforce, eliminating around 3,400 jobs. These actions represent a rapid sector-wide restructuring aimed at optimizing margins and insulating current operations from impending automated market entrants. The fact that Uber is leaning into third-party autonomous partnerships while simultaneously trimming headcount underscores the severity of the threat.

Clearing the Intersection: FSD Testing Gains TractionWhile Tesla's premium forward multiples reflect strong institutional belief in this transition, realizing sustainable fleet revenue remains tied to operational execution and regulatory frameworks. The transition to a driverless economy is far from complete. Removing traditional controls from a vehicle introduces severe legislative hurdles that have yet to be cleared globally. Scaling an autonomous network requires continuous capital expenditure into artificial intelligence infrastructure, which will continue to pressure free cash flow until the network is fully operational and generating reliable daily fares.

There are early signs of regulatory momentum taking shape abroad. French regulators recently confirmed on-road testing of full self-driving systems. Documentation submitted for European approval indicates about 195,000 kilometers of testing on French roads with no notable incidents. This data provides supporting context that regulatory tailwinds are forming, which could inform a broader European Union approval vote in the near future. Breaking through European bureaucracy would validate the safety profile of the underlying software and provide a blueprint for expansion into other highly regulated markets.

However, domestic and international legislative hurdles remain the primary bottleneck to scalable fleet monetization. Building the operational logistics of fleet management from the ground up requires flawless execution. Tesla must prove it can handle the granular details of fleet maintenance, charging logistics, and customer service at scale. The established logistics networks of legacy ride-share companies provide a functional, revenue-generating bridge to autonomy that pure-play entrants still need to build from scratch.

The Final Mile: Capitalizing on the Driverless ShiftThe deployment of autonomous hardware represents a critical juncture in the transportation sector. Transitioning from a hardware-centric manufacturing model to a scalable logistics network offers a path to margin expansion, provided the technology and regulatory approvals align.

The market is currently pricing in a successful transition for autonomous pioneers while applying a heavy discount to traditional ride-share models, forcing industry-wide restructuring and strategic partnerships. The valuation gap between innovators and incumbents reflects a clear expectation of cash flow disruption over the next decade.

Investors evaluating this space might monitor the progress of international regulatory approvals and the rollout phases of these initial autonomous fleets. Cautious investors may prefer to watch how early fleet utilization metrics affect quarterly cash flows before taking a position, as the premium multiples require nearly flawless execution in the quarters ahead. Observing how traditional platforms adapt their cost structures in response to these emerging networks will also provide critical context for the longevity of legacy ride-share equities.

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Key Takeaways Uber and Zipline are targeting one million drone deliveries per day by the end of 2029, though this remains a company-stated goal rather than current operating scale. Zipline's delivery volume shows accelerating pace: its first million cumulative deliveries took 2,684 days, while the second million took just 699 days.

Uber's recently announced layoffs and business reorganization come at a pivotal time for the company. A 10% workforce reduction will have a notable impact on profitability as gross margins also improve. The muted market response is not surprising given the higher levels of investment that will be needed as the autonomous vehicle expansion accelerates in the coming years.

Job openings just hit their highest level since May, yet something is quietly vanishing from payrolls that the 4.1% unemployment rate is not built to detect.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Employers posted 7.27 million open jobs on the last business day of July 2026, the highest reading since May. In the same month, the Bureau of Labor Statistics counted 158,858,000 total nonfarm payrolls, down from 158,881,000 in June, a decline of roughly 23,000 jobs. Employers say they want to hire, but the hiring is not happening. And when Revelio Labs looks at who is missing from the payroll data, the answer is almost entirely one cohort: workers between 22 and 25.

A Frozen Market With a Missing Bottom Rung Evan Sohn of Revelio Labs told CNBC on September 3 that this is the “lowest hiring that we’ve seen since 2021, the lowest firing that we’ve seen in a long time,” with WARN notices at their lowest of the year. He called it a frozen market. The freeze shows up in the year-over-year math. Payrolls rose about 316,000 in the twelve months through July 2026, against roughly 794,000 in the twelve months before that. The economy is refusing to onboard new workers even as it holds onto the ones already employed.

Sohn’s diagnosis is that AI is removing the first rung of the ladder rather than displacing tenured workers. Companies leaning hardest into AI are hiring senior roles faster than others while junior slots vanish. Computer and mathematics jobs are up 24% year over year, but the postings ask for specialists, not new graduates. Twenty-two to twenty-five year olds, in his phrase, are “getting lost in the shuffle.” The headline unemployment rate of 4.1% in July hides this because the aggregate rate counts people actively looking, not people trying to break in.

Uber Shows How the Machine Works Uber (NYSE:UBER | UBER Price Prediction) is the case study Wall Street rewarded this week. The company is cutting 3,300 corporate jobs, about 10% of its workforce, and shares climbed on the news. On the Q2 earnings call, CFO commentary was explicit: AI coding tools have hit “near 100% adoption with our engineers” and are producing a “doubling in the code output for engineers.” Management said it had “surgically, in a couple of organizations, cut headcount by about 10% to 20%.” Customer support and marketing were named as the next targets.

The financial picture underneath is strong. Q2 revenue was $14.19 billion, gross bookings hit $58.02 billion, and trailing twelve-month free cash flow topped $10 billion for the first time. And yet the stock at $75.72 is down 6.44% year to date and 17.63% over the past year. Investors are paying for margin expansion, not workforce expansion. That is the model other CEOs are copying.

What to Watch Next The signal to track is the August payroll release and whether the JOLTS openings figure keeps rising while hiring stays flat. If the gap widens, the Fed will be forced to explain how a 4.1% unemployment rate can coexist with a generation locked out. The gig economy absorbs some of the overflow: Uber served 208 million monthly consumers in Q2 and moves millions of independent drivers through its app. It provides income, if not a career.

Sohn’s advice to twenty-somethings was blunt: get AI certified, or “go where there’s people” and pursue healthcare, nursing, or broadcast news. Translation: learn the tool taking your job, or take a job the tool cannot do yet.

Data Sources Revelio Labs on CNBC: Evan Sohn’s characterization of a frozen market and the 22-to-25 cohort being locked out. BLS Nonfarm Payrolls series (CES0000000001): July 2026 payroll level and year-over-year comparison. JOLTS Job Openings (JTSJOL): 7.27 million openings for July 2026. Uber Q2 2026 earnings release and conference call transcript: financial results, AI adoption commentary, and restructuring context. Contact [email protected] for any questions or corrections.

I was just laid off from Uber for the second time. As a boomerang employee, it's everything I feared coming true. As told to You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Uber laid off Kori X in 2023 and again this week. Courtesy of Kori X This as-told-to essay is based on a conversation with Kori X, who is based in Phoenix. They were originally laid off from Uber in 2023, returned this year as an evaluations specialist on the GenAI team, and were laid off again. Their words have been edited for length and clarity.

I was first laid off by Uber in 2023 after working my way up through multiple roles. When I woke up yesterday morning and saw the email that four months after I had rejoined the company, I was being laid off again, I wanted to throw my phone at the wall.

I was extremely nervous to rejoin Uber this year after already being laid off once. I used to love this company, but I was so afraid it would happen again. I needed a new job, so I talked to some of my friends who were still at Uber, and then in May, they helped me to rejoin as an evaluations specialist on the GenAI team.

Unfortunately, my fears became reality this week.

I didn't see the layoff comingAfter my 2023 layoff, I ventured out and was a manager at a store for a minute, but unfortunately, that shop closed. So I thought, "Okay, maybe it's time, give Uber another shot. I'll go back."

Amazon cuts 14,000 corporate jobs amid AI restructuring

Within weeks, I was rehired and working on a team of 12 to 15 people. I was constantly working in the office, too. I was also on an employee experience team. I was planning events for upcoming holidays, everything like that.

I was shocked when I received an email from my manager saying that they and other people on my team were also let go. To me, nothing alluded to this.

Last I heard, the company had just laid off a couple of people, maybe a month or so ago, and it seemed like we had a minute to not worry before they were going to do more.

My access got cut off pretty quicklyMy internal system access was cut off at 5 p.m. local time yesterday, but I wasn't able to get into Slack before then.

I got 21 weeks of severance pay based on tenure and two months of "garden leave," where I'll get my salary until November. Until then, I'll remain on payroll, with equity vesting and health benefits uninterrupted.

I'm not waiting until then to apply for jobs. I started looking as soon as I got the email. Unfortunately, the job market is really hard out there. I was just in it earlier this year.

I have to live somehow. If corporate is what it takes, then I'll unfortunately go back to corporate life. But if I can find a smaller shop or somewhere I can go that is not in a corporate environment, that's probably where I would prefer to be.

I don't think it was a management layer problemI don't agree with the CEO's assessment that there were too many management layers. And if there were, it's his fault. That's all done by upper leadership. That has nothing to do with frontline workers.

I think these are excuses for why Uber wanted to cut people, but I don't think it has anything to do with management or too much overlap. I think they're seeing that AI products can replace a lot of that, and they can make more money with fewer people.

If they're going to lay off people, maybe be a little bit more discerning as to who you're laying off, because there were really good people that were there for a really long time who were affected. I was there for years before my first layoff. I knew that place like the back of my hand, and they didn't care.

Uber did not respond to a request for comment.

Do you have a story to share about a recent layoff? If so, please reach out to the reporter at [email protected].

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Agnes Applegate You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Agnes Applegate is a senior associate editor at Business Insider on the Business Contributors and Freelance team. She writes and edits as-told-to articles and works with freelancers and contributors on personal essays covering a variety of topics, including AI-powered startups, AI careers, major career pivots, viral career moments, and job market strategies. She previously was a fellow on the Business Contributors and Freelance team and worked as a breaking news runner at The New York Post.

Uber Layoffs as told to More

Uber is slashing thousands of jobs and pouring billions into self-driving cars it will never actually build. Whether that bet saves the company or slowly hands its future to someone else is the real question.

Uber (NYSE:UBER | UBER Price Prediction) is cutting 3,300 jobs and flattening its management structure while committing $10 billion over a multi-year period to autonomous vehicles it does not build itself. According to Reuters, the restructuring reduces the number of reporting levels below CEO Dara Khosrowshahi by 7 or more and cuts fully remote roles to roughly 1% of headcount.

Uber launched robotaxi rides in London with Wayve, with licensed safety operators still on board. The two decisions signal a shift in what Uber thinks its job is: the company that spent a decade avoiding capital intensity is now underwriting the commercial layer of an industry whose economics belong to somebody else.

What Uber Actually Announced On the Q2 call, Khosrowshahi said Uber had “surgically, in a couple of organizations, cut headcount by about 10% to 20%” against a company generating more than $10 billion of trailing twelve-month free cash flow. Q2 gross bookings grew 22% year-on-year to $58.02 billion, with non-GAAP EPS up 35%. The stock is down 6.44% year-to-date.

Khosrowshahi wants Uber to be “the world’s leading commercialization platform for autonomous vehicles.” Uber was live in seven cities and expected to be live in 15 by year-end, with Waymo described as “a very, very important partner,” while also working with Wayve, Zoox, Pony, Baidu and NVIDIA.

AV trips remain less than 0.5% of Uber’s 300 million weekly trips. The $10 billion covers equity stakes in AV software partners and selective balance-sheet support, including roughly 120,000 vehicle commitments. Khosrowshahi said partners have raised an additional $2.5 from other investors for every dollar Uber commits.

Where Uber’s Bargaining Power Breaks Down Uber’s marketplace worked because supply was effectively free. Drivers brought their own cars and absorbed depreciation. Autonomy inverts that. Refusing to invest would let Waymo and Tesla route riders through their own apps, so Uber is choosing to take on the capital intensity and insurance exposure it spent a decade avoiding.

When software is the driver, liability shifts to whoever underwrites the fleet, and that party captures a real slice of per-trip economics. Uber’s leverage lies in demand aggregation and network density, because filling a vehicle’s day is harder than building one. That leverage is real but not absolute against partners with alternatives.

Uber trades at a P/E of 16x against a 2027 EPS estimate of $4.63. Uber’s 41.37% ROE and $2.79 billion quarterly free cash flow give it room to fund the transition without diluting shareholders. The bargaining risk is genuine, but Uber’s aggregation moat is likely to hold through the deployment years, which supports a constructive research view on the shares.

Contact [email protected] for any questions or corrections.

At $76.45, Uber Technologies (NYSE:UBER | UBER Price Prediction) looks compelling at current levels. The rideshare and delivery platform is down 6.44% year to date in 2026 and just announced its largest workforce reduction since the pandemic, which sets up…

At $76.45, Uber Technologies (NYSE:UBER | UBER Price Prediction) looks compelling at current levels. The rideshare and delivery platform is down 6.44% year to date in 2026 and just announced its largest workforce reduction since the pandemic, which sets up a rare disconnect between operating momentum and share-price sentiment.

Uber runs the world’s largest on-demand mobility, delivery, and freight platform, serving 208 million monthly active platform consumers across rides and Eats. The company is now cutting 3,300 jobs, roughly 10% of its 34,000-person global workforce, while reducing management positions by 20%, thinning micro-teams, and forcing most remote staff back into New York and San Francisco offices.

CEO Dara Khosrowshahi framed the move around efficiency, saying “a leaner organisation will mean clearer ownership, faster decisions, and more time spent building rather than coordinating.” The stock has not rewarded the restructuring narrative yet.

Why the Layoffs Could Ignite the Next Leg Higher Uber is compounding growth at scale. Q2 2026 Gross Bookings hit $58.02 billion, up 24% year over year, marking the fourth consecutive quarter above 20% growth. Trailing 12-month free cash flow crossed $10 billion for the first time, and management said AI coding tools are driving a doubling in code output for engineers, enabling surgical 10% to 20% headcount cuts in select organizations.

Valuation looks reasonable against that backdrop. Uber trades at a trailing P/E of 17 and forward P/E of 17, cheap for a business posting 76.68% net income growth. Q3 guidance calls for Non-GAAP EPS of $0.84 to $0.88, up 28% to 35% year over year, and 21 analysts have revised full-year 2026 EPS estimates upward in the past 30 days.

Why Bears See a Broken Growth Story The bear case starts with price action. Uber is down 17.63% over the past year and trades well below its 52-week high of $101.99. Mobility revenue grew just 1% in Q2, and business model changes weighed on reported revenue growth by roughly 8 percentage points.

Q2 also delivered a rare miss on both lines, with revenue of $14.19 billion missing the $14.26 billion estimate and EPS of $0.81 falling short of $0.83 expectations. Layoffs of this magnitude, following the biggest cuts since the pandemic, can signal that management sees demand cooling. Autonomous vehicle competition from Waymo and Tesla remains a structural overhang.

Why Patience Has a Case Uber’s 200-day moving average of $76.56 sits right at the current price, suggesting the market is undecided. The company deployed roughly $4 billion in Q2 to buy Delivery Hero stock, temporarily slowing buybacks. Investors waiting for clarity on AV monetization, mobility reacceleration, and the Delivery Hero integration have a legitimate reason to hold fire until the Q3 report.

What the Numbers Actually Say Uber currently trades at $76.45 against a consensus analyst price target of $101.81, implying meaningful upside if consensus proves correct. Analyst targets are one data point, not a promise. Coverage is deep, with 51 analysts split 8 Strong Buy, 35 Buy, 7 Hold, and 1 Sell.

The stock is down 6.44% year to date, badly lagging the S&P 500, which has posted positive returns over the same stretch. Over five years, Uber is still up 89.61%.

Why the Cost Cuts Reframe the Uber Setup At $76.45, Uber screens attractively. Here is why. The setup pairs accelerating upward EPS revisions with a stock trading 25% below its 52-week high. The 3,300-person workforce reduction represents an AI-driven margin unlock on top of guidance calling for 28% to 35% EPS growth next quarter.

The path to appreciation runs through Q3 execution, restored buyback cadence, and any AV milestone in the 15 cities Uber expects to be live in by year end. A forward multiple of 17 on a business generating over $10 billion of free cash flow leaves room for both multiple expansion and earnings growth.

The thesis breaks if mobility growth stalls further, if AV partners defect, or if regulatory action reclassifies drivers. Watch quarterly Gross Bookings growth staying above 20% and buybacks resuming within months rather than quarters.

At a market cap of $156 billion against consensus pointing 33% higher, Uber offers scarce large-cap growth at a value multiple, and that framing anchors the setup.

Contact [email protected] for any questions or corrections.

By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

and Ana Altchek You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Uber CEO Dara Khosrowshahi announced plans to reduce the number of 'micro-teams.' Bloomberg/Getty Images As Uber cuts jobs, it's targeting some of the smallest teams in its org chart.

In a memo announcing layoffs affecting about 10% of staffers on Wednesday, CEO Dara Khosrowshahi said the ride-hailing giant would trim management layers and cut the number of "micro-teams" — those with only one or two direct reports — by nearly half.

"The outcome is a simpler org chart geared toward building versus managing," Khosrowshahi wrote.

Uber's focus isn't simply on small groups of workers. It's groups that come with their own management layer. The move comes at a time when many tech companies are looking to reconstruct org charts with fewer layers and more managers acting as "player-coaches," not merely supervisors.

In some cases, it's meant CEOs like Meta's Mark Zuckerberg have touted the value of the "tiny team," where elite employees do the work that once took legions. Coinbase announced in May that it would have "no pure managers" as it shifted toward AI-native pods, including "one-person teams" in which a single employee takes on the work of an engineer, designer, and product manager.

Amazon cuts 14,000 corporate jobs amid AI restructuring

For others, it's meant asking fewer middle managers to oversee bigger teams — and sometimes take on more hands-on work as well.

How AI is reshaping teamsThese days, managers can often oversee larger teams because AI is changing what they do, said David McJannet, cofounder of Dome Systems, a platform for controlling AI agents. Instead of turning to a supervisor for guidance on every task, workers can use AI for help, he said. Managers can then focus more on setting goals and checking that employees are on track to meet them.

"The job of the manager is less about handholding," McJannet said.

However, there can be risks to trimming managerial ranks — and not only for those in the middle. As managers are stretched across more reports and responsibilities, career development and mentorship can fall to the wayside.

Paddy Lambros, the founder and CEO of Dex, which uses AI to connect software engineers with employers, previously told Business Insider that the intense pace of work has made managers' relationships with their reports "more tactical and transactional."

"It's not managing the human, it's managing the work," Lambros said. "And it's much more sink or swim."

Some executives are in favor of a shift toward fewer managers overseeing bigger teams. Fred Voccola, the chairman and CEO of AI software company Simpro Group, said this transition needs to happen "faster and more aggressively."

A Gallup report published in January found that the average manager's span of control grew from 10.9 direct reports in 2024 to 12.1 in 2025. At Simpro, Voccola said, the ratio of individual contributors to managers has gone from about eight-to-one to 17-to-1 as AI helps employees produce more.

The model requires leaders to contribute directly to tasks, Voccola said. He calls it "hands-dirty" work for managers. For example, he said he wants a chief technology officer involved in debates about software architecture and a chief marketing officer writing copy.

That doesn't mean every small team within companies is obsolete. In his memo, Uber's Khosrowshahi said the company would cut down the number of micro-teams, not eliminate them entirely.

Kevin Kelley, Boston Consulting Group's global lead for organizational design, said there are instances where small teams are the right bet. For instance, new initiatives might start with only a few people. He said small teams can also make sense when work is highly uncertain or highly interdependent and requires senior expertise.

"A small team will actually make sense under those circumstances for some period of time," Kelley said.

Micro-teams under major pressureFor some executives, the case for reducing the number of teams with only a few direct reports isn't solely about cutting layers or costs. Bill George, former CEO of the medical-device maker Medtronic, said such teams can lack the "diversity of expertise" to solve problems independently simply because of their size.

"We need to have a multidisciplinary team," George, an executive fellow at Harvard Business School, said. "The problem with a one- or two-person team is you only get a couple of disciplines."

George expects to see more companies having managers oversee 15 to 50 people, although there is no magic number for the appropriate span of control, he said.

One goal of stripping out managers is to reduce the layers separating leadership from frontline employees — a point Khosrowshahi raised in his memo, saying Wednesday's restructuring would reduce by 20% the number of workers who are seven or more layers from the CEO.

That can give executives a more direct view of what is happening, George said, rather than relying on information filtered through several levels of management. That was his approach when he ran Medtronic. When the company had production problems, he said, he didn't want to hear only from the quality department.

"I'm going down to the floor and talk to the people on the production line," George said. "They'll give me the real story."

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Tim Paradis You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Tim reports on the workplace and the forces reshaping how people make a living, including AI, remote work, and corporate cost-cutting. His reporting examines how those shifts are changing careers, management, hiring, performance expectations, and workers’ day-to-day lives, particularly in fast-changing fields such as tech.He previously reported on Wall Street and the stock market for the Associated Press and graduated from Ohio State University.

Ana Altchek You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Ana  writes about workplace trends and how AI is reshaping the roles of software engineers. She also regularly interviews C-suite executives about their career trajectories and leadership insights.Ana hosts a weekly video series called "Work Shift," which breaks down the biggest workplace news of the week. She holds a master’s degree in multimedia journalism from NYU and has been featured on BBC, NPR, and other global media platforms.Have a tip? You can contact her via email at [email protected] or through the secure-messaging app Signal at aalt.19.

Tech AI Uber More Layoffs Leadership

Uber Technologies (UBER) lays off thousands of workers as U.S. private payrolls appear to slow in the latest ADP employment report. Staying in the automobile space, Tesla (TSLA) EV sales hit the brakes in China ahead of the company's Cybercab event Thursday.

Uber is cutting roughly 10% of its workforce, or about 3,300 jobs, in an effort to streamline operations, the company announced on Wednesday.

The ride-hailing giant's CEO, Dara Khosrowshahi, said in a memo to employees that the company is removing management layers, simplifying teams and refining where its teams are based.

"The changes we’re making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future," Khosrowshahi said. 

"A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating," he said. "It will also generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years."

HERTZ, UBER TEAM UP TO BUILD ROBOTAXI FLEETS IN MAJOR MOBILITY PUSH

CEO Dara Khosrowshahi said that the company is removing management layers, simplifying teams and refining where its teams are based. (Lam Yik/Bloomberg via Getty Images)

Khosrowshahi said Uber’s revenue has nearly tripled in the last roughly five years, but said the company's expansion has also brought "more complexity."

"That growth has also brought complexity: more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale," he said.

As part of the restructuring, Uber said it has reduced the number of employees sitting seven or more layers below the CEO by 20% and has cut the number of "micro-teams" – those with only one to two direct reports – by nearly 50%.

UBER, RIVIAN INK $1.25B DEAL TO PUT THOUSANDS OF ROBOTAXIS ON US STREETS

Khosrowshahi said Uber’s revenue has nearly tripled in the last roughly five years, but wrote that that expansion has also brought "more complexity." (Jefferson Siegel/Reuters)

"The outcome is a simpler org chart geared toward building versus managing," Khosrowshahi said.

The company is also combining some teams where "fragmentation was creating duplication and slowing decisions," according to Khosrowshahi.

Uber also said it will concentrate teams in a smaller number of key hubs, including New York and San Francisco. The company is asking the majority of its remote workers to relocate to an office and said that going forward, only about 1% of employees will be remote.

LAX APPROVES RIDESHARE FEE HIKE THAT COULD PUSH UBER AND LYFT FARES SHARPLY HIGHER

The company is also combining some teams where "fragmentation was creating duplication and slowing decisions," according to Khosrowshahi. (David Paul Morris/Bloomberg via Getty Images)

Uber will continue requiring employees to work from an office three days per week, according to Khosrowshahi.

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"I realize this is a lot of change, but we decided it was better to make one big shift rather than multiple small ones," Khosrowshahi said. "We also know organizational changes can be hugely distracting, and our job is to create an environment that allows you to focus and do your best work. With these decisions now made, our focus is on the future."

Ride-hailing giant Uber will lay off about 10% of its staff as part of "significant organizational changes," CEO Dara Khosrowshahi said in a message to employees released Wednesday.

Uber is laying off roughly 10 percent of its work force, totaling about 3,300 people, as the ride-hailing company restructures to become “simpler and faster,” its chief executive, Dara Khosrowshahi, said on Wednesday.

The layoffs are set to affect 20 percent of rank-and-file employees who are seven or more layers below Mr. Khosrowshahi, he said. He added that Uber would increase the number of employees under each manager by cutting the teams that had only one or two workers by half, which would flatten the company.

“A leaner organization will mean clearer ownership, faster decisions and more time spent building rather than coordinating,” Mr. Khosrowshahi said in a message to employees. “It will also generate savings that we intend to reinvest in growth, innovation and the capabilities that will matter most over the coming years.”

He said that Uber’s revenue had nearly tripled over the past five years, but that rapid growth had introduced “more layers, more coordination and more fragmented ownership.”

Tech companies including Meta, Coinbase and Block have laid off hundreds to thousands of employees this year. Many have cited artificial intelligence as a reason, though analysts and economists have said the technology may have offered a smoke screen for those looking to beef up profits or patch over old mistakes.

Mr. Khosrowshahi did not blame A.I. for the layoffs. Uber has been expanding into autonomous rides in places like London, and has said it wants to build the world’s largest platform for self-driving vehicles.

In Wednesday’s announcement, Uber said it would also consolidate its delivery operations and some engineering and science teams.

The company plans to concentrate global teams in New York and San Francisco, with regional and local teams in other hubs. Mr. Khosrowshahi said most remote workers were being asked to relocate to an office, leaving 1 percent of employees fully remote, while the company reinforced its three-days-a-week hybrid policy.

Uber said it did not have additional comment beyond Mr. Khosrowshahi’s remarks.

Uber Technologies is cutting about 3,300 jobs as Chief Executive Dara Khosrowshahi moves to streamline the company's organization, reduce costs and speed up decision-making at a time when the ride-hailing giant is preparing for a potentially disruptive shift toward autonomous vehicles.

The cuts, equivalent to roughly 10% of Uber's workforce, sent shares UBER about 2% higher in premarket trading Wednesday.

The stock has nevertheless had a difficult year, falling over 9% and trailing the broader S&P 500 as investors have become increasingly concerned that autonomous ride-hailing operators such as Waymo could challenge Uber's dominant position in the North American market.

Khosrowshahi outlined the restructuring in an email obtained by Bloomberg News, arguing that Uber's rapid expansion had left the company with an overly complicated structure.

“more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale.”

Uber had about 34,000 employees worldwide at the end of last year, according to its annual report.

Once the cuts are completed, its workforce will fall to just under 30,000 employees, roughly the same level as in 2021.

The reductions will be Uber's largest since May 2020, when the company eliminated about 6,700 positions, or nearly a quarter of its workforce, as COVID-19 restrictions brought much of the ride-hailing industry to a standstill.

The latest cuts are different in nature.

Rather than responding to an immediate collapse in demand, Uber is seeking to reshape an organization that has grown substantially in recent years.

Khosrowshahi said the changes are intended to make Uber “simpler and faster,” with fewer layers of management and less duplication between teams.

The company has reduced by 20% the number of employees positioned seven or more reporting layers below the chief executive, while the number of "micro-teams" — teams with only one or two direct reports — has been cut by nearly half, according to Bloomberg.

Uber is also consolidating parts of its engineering, science and delivery operations. Its three operations teams covering restaurants, retail and white-label delivery services will be combined as part of the restructuring.

The changes extend beyond headcount.

Uber plans to concentrate global teams in New York and San Francisco and require most remote employees to relocate.

Only about 1% of its workforce will be allowed to remain remote under the new arrangement.

The restructuring comes as Uber tries to balance efficiency with substantial investment in the next generation of its business.

Khosrowshahi said the changes will “generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years.”

He said more investments will be made into drivers, couriers and merchants around the world, in addition to upgrades for its core business and work being done to build an “autonomous future.”

Uber has committed to investing more than $10 billion in robotaxi partnerships over the coming years as it seeks to position itself as the platform through which consumers summon autonomous vehicles.

The company has also been reallocating capital toward the autonomous vehicle ecosystem, including investments in Avride, Lucid, Nuro and Rivian Automotive, while reducing stakes in some other companies.

That strategy could ultimately allow Uber to participate in the autonomous vehicle market without having to manufacture the vehicles itself.

BMO Capital recently reiterated an Outperform rating and a $119 price target on Uber, reinforcing a broader bullish Wall Street view.

Analyst targets currently range from $70 to $150, with the consensus rating at Strong Buy, with $150 reflecting a 100% upside from its current trading levels of $75.

BMO argues that the investment case for Uber is increasingly moving beyond conventional ride-hailing and toward its potential role as a marketplace connecting passengers with autonomous vehicle operators.

The firm believes Uber's expanding autonomous vehicle infrastructure and growing network of partners could position it as a preferred mobility platform for autonomous vehicle manufacturers.

The implication is important for investors.

If autonomous fleets eventually become a meaningful part of urban transportation, the economics of ride-hailing could change substantially.

Uber would face less reliance on human drivers while potentially gaining access to a larger pool of autonomous vehicles operated by different partners.

BMO said Uber's autonomous vehicle strategy is expected to become a significant driver of revenue and profitability, and that the company could capture a disproportionate share of the value created by the commercialization of autonomous vehicles.

Unlike many technology companies that have cited artificial intelligence as a reason for reducing headcount, Khosrowshahi did not attribute Wednesday's layoffs directly to AI.

Uber has, however, been looking to use more AI across its operations, and the restructuring is partly aimed at creating a leaner organization capable of deploying technology more efficiently.

The distinction matters.

Uber is not simply cutting jobs to offset technology spending.

It is attempting to remove organizational complexity while freeing capital for areas it believes will determine its competitive position in the coming years.

That includes autonomous vehicles, where Uber faces both an opportunity and a threat.

The reduction is Uber's largest since it cut 6,700 roles in May 2020 Summary

Uber will cut roughly 10% of its workforce, having already reduced micro-teams by nearly half and employees seven or more layers below the CEO by 20%.

Uber Technologies UBER rose 1.94% premarket after saying it will cut about 3,300 jobs, roughly 10% of a workforce that stood near 34,000 at the end of last year. The restructuring is aimed at removing management layers, consolidating teams and reducing costs. It is Uber's largest reduction since May 2020, when the company cut about 6,700 roles as the pandemic collapsed ride-hailing demand.

Uber reduced the number of employees sitting seven or more reporting layers below chief executive Dara Khosrowshahi by 20%. It also cut micro-teams, those with only one or two direct reports, by nearly half. Khosrowshahi said the complexity had slowed decision-making and created roles focused on coordination rather than output. He did not attribute the cuts to AI, unlike several other tech executives.

Uber will concentrate global teams in New York and San Francisco, require most remote workers to relocate, and limit fully remote roles to about 1% of staff, keeping its three-day office policy. The move follows a year in which Uber shares fell nearly 8%, underperforming the S&P 500 as investors weighed the threat autonomous operators like Waymo pose to its North American share.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Uber Technologies is cutting about 3,300 roles, or 10% of its staff globally, in a restructuring aimed at reducing management layers and reallocating spending into its ride-sharing, delivery and robotaxi businesses. Carmen Reinicke has more on "Bloomberg Open Interest.

Uber Technologies Inc (NYSE:UBER, XETRA:UT8) is cutting about 3,300 jobs, or roughly 10% of its global workforce, as part of a restructuring aimed at reducing management layers and shifting spending toward its core ride-hailing, delivery and robotaxi businesses.

CEO Dara Khosrowshahi outlined the changes in an email to staff, saying the moves are meant to make the company "simpler and faster." He said Uber's growth in recent years had created "more layers, more coordination, more fragmented ownership," structures he said no longer serve the company at its current scale.

The restructuring will cut the number of managers by 20%, though some of those employees will shift into individual contributor roles rather than lose their jobs outright.

Uber is also reducing the number of two-person teams by half and eliminating positions more than seven layers removed from the CEO.

Uber set a new cap limiting remote work to about 1% of employees, while maintaining its existing policy requiring staff to work from the office three days a week.

Khosrowshahi tied the restructuring to Uber's ambitions in autonomous vehicles, telling staff the savings would be reinvested in "the autonomous future." The company has committed more than $10 billion to robotaxi partnerships and has invested in Avride, Lucid Group, Nuro and Rivian Automotive.

"Our opportunity from here is enormous: we have the chance to bring Uber to hundreds of millions more people; to invest even more in drivers, couriers and merchants; and to innovate across our core businesses and build the autonomous future," Khosrowshahi wrote.

The cuts follow more targeted layoffs earlier this year in Uber's customer service and human resources departments, and mark the company's largest workforce reduction since the pandemic-era cuts of 2020.

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Uber is reportedly cutting roughly 3,300 jobs, or 10% of its total workforce. That's according to a report Wednesday (Sept.

Uber Technologies (UBER.N) said on Wednesday it will cut about 3,300 jobs, or roughly 10% of its workforce, in a restructuring aimed at removing management layers, consolidating teams and reducing costs.

The cuts follow ​a difficult year for Uber shares, which have fallen nearly 8% ​and underperformed the broader S&P 500 (.SPX), amid investor concerns that autonomous ⁠ride-hailing companies such as Waymo could threaten Uber's dominant North American market share.

The company ​had about 34,000 employees globally at the end of last year, according to ​its annual report.

The layoffs would be Uber's largest since May 2020, when the company cut about 6,700 jobs, or nearly a quarter of its workforce, as pandemic restrictions crushed ​demand for ride-hailing services.

Echoing a broader push across the tech industry to ​stay nimble, CEO Dara Khosrowshahi said the cuts would reduce organizational complexity that had slowed down ‌Uber's ⁠decision-making and created roles focused on co-ordination.

But unlike several tech executives, he did not blame the cuts on AI. He also said Uber would combine some teams and concentrate most of its staff presence around key hubs as ​part of the move.

Uber ​said it reduced ⁠the number of employees positioned seven or more reporting layers below the CEO by 20% and cut the number ​of "micro-teams", teams with only one or two direct reports, ​by nearly ⁠half.

The company will concentrate global teams in New York and San Francisco, require most remote workers to relocate and limit fully remote roles to about 1% of ⁠staff, ​while maintaining its three-day office policy.

Its shares rose ​about 2% in premarket trading following the announcement, which was first reported by Bloomberg News.

Uber is laying off about 3,300 people, or about 10% of its global headcount, in a bid to cut management layers and invest more in its ride-sharing, delivery and robotaxi divisions. The company announced the changes in an internal email sent by CEO Dara Khosrowshahi and published online Wednesday.

Získat řidičský průkaz a vlastnit auto je dlouhá léta považováno za jakýsi vstup do dospělého a svobodného života. Během příštích desetiletí se ale tento zvyk může zásadně změnit. Tvrdí to alespoň prezident a provozní ředitel Uberu Andrew Macdonald, který se domnívá, že rozvoj autonomních vozidel, sdílené mobility a veřejné dopravy povede k situaci, kdy většina lidí nebude potřebovat ani vlastní automobil, ani řidičské oprávnění.

„V budoucnu, možná ne za pět let, ale za 15 nebo 20 let, nebude nikdo vlastnit auto. Nikdo nebude mít řidičský průkaz, protože se budete moci pohybovat i bez něj. Myslím, že kola a koloběžky budou toho součástí. Myslím, že autonomní vozidla budou toho součástí. Myslím, že veřejná doprava bude toho velkou součástí, ale nemyslím si, že budete muset vlastnit auto,“ podělil se svou odvážnou myšlenkou Macdonald v podcastu 20VC with Harry Stebbings, na který upozornil server magazínu Fortune.

Takový scénář by znamenal výrazný kulturní obrat zejména ve Spojených státech, kde bylo vlastnictví automobilu po desetiletí považováno za jeden ze symbolů amerického snu a osobní nezávislosti. Macdonald však argumentuje především ekonomikou provozu.

„Individuálně vlastněné auto je nejneefektivnější aktivum, které kdokoliv vlastní, a to bez ohledu na cenovou hladinu. Auto je nevyužité 98 procent dne. Je to znehodnocování. Průběžné provozní náklady jsou ve skutečnosti vysoké – i když vůz zrovna neřídíte, platíte za jeho pojištění,“ řekl dále Macdonald.

Ze změny, o které hovoří, by právě Uber jednoznačně profitoval. Společnost totiž v posledních letech upravila svou strategii v oblasti autonomní mobility – vzdala se vývoje vlastní flotily samořiditelných vozidel a místo toho se zaměřila na budování platformy, která bude autonomním provozovatelům umožňovat přístup k zákazníkům.

Firma v této souvislost navázala spolupráci s řadou společností zaměřených na autonomní řízení, včetně Waymo či Waabi. Cílem je začlenit jejich technologie přímo do sítě Uberu a vytvořit ekosystém, kde budou vedle lidských řidičů fungovat i robotické vozy, píše Fortune.

Právě tato strategie může být pro společnost z byznysového hlediska mimořádně zajímavá. Pokud se autonomní doprava skutečně rozšíří, Uber by mohl fungovat jako klíčový prostředník mezi provozovateli vozidel a zákazníky, aniž by musel nést náklady na vývoj vlastní technologie.

Nejdéle sloužící zaměstnanec

Macdonald působí v Uberu už od roku 2012, což z něj dělá nejdéle sloužícího aktivního zaměstnance společnosti, jež vznikla v březnu 2009. Svou dlouholetou práci charakterizuje dvěma klíčovými věcmi. První je získávání důvěry tím, že rozhodnutí vycházejí z dlouhodobého zájmu firmy, nikoliv z osobních preferencí či krátkodobých cílů. I když některá rozhodnutí nemusí být zpětně správná, konzistentní přístup podle něj pomáhá budovat důvěru kolegů a podporuje jejich ochotu následovat vedení společnosti.

Druhým faktorem je detailní znalost oboru. Po mnoha letech ve firmě je podle vlastních slov jedním z největších odborníků na odvětví sdílené dopravy, a právě kombinace odbornosti a důvěry považuje za základ efektivního vedení.

Macdonaldovy předpovědi o proměně způsobu, jakým se (nejen) Američané pohybují, zapadají do širší debaty o vizích ohledně budoucnosti práce a každodenního života, které se s vývojem umělé inteligence jistě promění.

Podobně ambiciózní výhled nabízí i samotný generální ředitel Uberu Dara Khosrowshahi. Ten začátkem letošního roku v podcastu The Diary of a CEO prohlásil, že během příštích 15 až 20 let bude významná část jízd na platformě zajišťována autonomními stroji místo lidských řidičů.

Fortune k tomu dodává, že ačkoliv se taková budoucnost v současnosti zdá hodně vzdálená, tak k disrupci už dochází nyní. Autonomní vozidla se zavádějí v mnoha velkých městech, přičemž Uber platí řidičům za trénování AI modelů, zatímco konkurenční Lyft dokonce platí bývalým řidičům za údržbu a obsluhu autonomních vozidel, která začala nahrazovat část tradičních jízd, napsal nedávno server Business Insider.