Kara Swisher interviews Dara Khosrowshahi, CEO of Uber about the company's high prices, treatment of drivers, and safety policies. They also discuss the challenges and opportunities in the freight market and Uber's transformation and profitability. The conversation touches on the issue of driver compensation and disagreement over Saudi Arabia's presence on company boards during a murder investigation. They explore the rise and impact of Twitter and Elon Musk's allure of attention and power on the platform.
Uber Eats played a crucial role during the pandemic, benefiting both the company and drivers, and differentiates itself through seamless integration and a focus on restaurant advertising.
Uber's core focus is to match user demand with driver supply, resulting in increased efficiency, growth, and improved driver earnings.
CEO Dara Khosrowshahi emphasizes the importance of safety measures, transparency, and continuous improvements to address legal challenges and ensure the safety of all users.
Deep dives
Summary of the podcast episode
In this podcast episode, Uber's CEO, Dara Khosrowshahi, discusses various topics including the Lesbians Who Tech Conference, Uber's path to profitability, advertising on Uber Eats and rides, Uber Freight's challenges, and the future of autonomous vehicles. Khosrowshahi highlights the importance of profitability and growth balance, the success of Uber Eats, and the transparency of earnings for drivers. He emphasizes the preference of drivers to remain as independent contractors and the potential complementarity of autonomous vehicles and human drivers in the future.
The Success and Profitability of Uber Eats
Khosrowshahi explains that Uber Eats played a crucial role during the pandemic, benefiting both the company and drivers. He highlights the profitability and growth acceleration of Uber Eats, stating that the service differentiates itself by utilizing the existing Uber ecosystem, allowing for easy integration and a seamless user experience. Additionally, he mentions the effectiveness and value for restaurants in advertising on the Uber Eats platform.
Challenges and Transformation in Uber's Business Model
The discussion touches upon the challenges faced by Uber, particularly in the freight market and pricing transparency with drivers. Khosrowshahi acknowledges the struggles in the freight industry due to fluctuating rates and market demand. Regarding driver earnings and the perceived discrepancy between Uber's revenue and driver pay, he emphasizes the average hourly earnings drivers make while acknowledging the need to improve the stability of earnings and address driver concerns. He also addresses the future potential of autonomous vehicles as a complement to human drivers.
Efficiency and growth of the mobility business
The podcast episode highlights the success of the mobility business at gaining market share and improving driver earnings. The core focus of the business is to match user demand with driver supply, which has resulted in increased efficiency and growth. In the last quarter alone, the company paid $15.1 billion to earners, drivers, and couriers, marking a 19% year-on-year increase. Driver earnings have also risen, surpassing the 40% increase in prices.
Competition and safety measures
The episode discusses the competition in the ride-hailing industry, specifically acknowledging one major competitor that has struggled to be profitable. Despite this, the CEO confirms that they take the competition seriously, but there are no plans to buy them due to antitrust concerns. The conversation then shifts to safety measures implemented by the company, such as deep background checks, audio recording in cars, and a focus on improving safety for all users. While some areas have seen legal challenges related to sexual assault cases, the CEO emphasizes their commitment to transparency and continuous safety improvements.
Uber: hard to live with it, or without it. In this episode Kara grills CEO Dara Khosrowshahi on the company’s sky-high prices, high take rate, treatment of drivers/couriers, policies around safety and why oh why he is kind to his predecessor, Travis Kalanick.
Before and after the interview, Kara and Nayeema make sense of the power and problems of Uber, and discuss Lesbians Who Tech (a conference — not in general).
Note: Khosrowshahi discusses a 15% “take rate” in the United States, exclusive of commercial insurance expenses. Globally, the company reported a 29.3% “take rate” in Q2 of 2023 inclusive of these costs.