REUTERS/Anushree Fadnavis
Your ride to the airport or Friday-night dinner delivery through Uber might cost less if an economic downturn arrives, according to its CEO.
If the economy enters a recession, more people could sign up to drive and deliver for Uber, Dara Khosrowshahi said on Friday.
“If there is more unemployment, the cost of Uber will come down, because, to some extent, the cost of labor comes down,” Khosrowshahi said at the Semafor World Economy Summit in Washington, D.C.
Khosrowshahi said that Uber tends to be “recession-resistant” since many people still want groceries, restaurant delivery, rides around town, and other “everyday use cases” — even if they cut back spending in other areas.
“You may put off going on vacation in Europe this summer, but you’re still going to treat your family to a nice dinner,” he said. “We specialize in small treats, not big treats.”
Consumers have turned to said small treats when the economy — and their income — have deteriorated in the past.
Lipstick sales, for instance, rose during the 2001 recession as some shoppers looked to makeup as an affordable luxury even as they avoided larger purchases.
Economists, executives, and others worry that a recession could be sparked this year by President Donald Trump’s tariffs.
Many retailers and consumer brands have said that they will pass the costs of the tariffs to shoppers, leading to higher prices on store shelves and online after years of post-pandemic inflation.
While shoppers pulled back spending in many areas last year, many did keep paying to have what they bought delivered through services including DoorDash, Instacart, and Uber Eats, earnings reports at the time showed.
Getting work on Uber and other gig apps might not be so easy for laid-off workers and others in a recession, though.
Current gig workers have told Business Insider that many apps are already saturated with people looking to claim work, and that some even have wait lists for prospective independent contractors.
Do you have a story to share about Uber or other gig work apps? Contact this reporter at [email protected] or 808-854-4501.
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