This is how Uber is pivoting in hopes of economic sustainability
Uber’s stock prices have been trending below its IPO price as the global ride-hailing giant has received much criticism over its ability to turn a profit.
In light of tough public investors, Uber is under pressure to address its loss-making business model to become more economically sustainable.
It is diversifying beyond just ride hailing, green mobility/micro-mobility and food delivery. It has now announced its staffing application, called Uber Works, that connects shift workers with shifts.
Uber is working in partnership with staffing agencies to enable this business stream, which looks to deepen its roots in the large working class segment of the United States.
This on-demand staffing platform also gives Uber a chance to tap into the gig economy, and cater to the large young generation looking to make a quick buck.
The service has launched in Chicago, with other cities in the pipeline.
“We believe a new, technology-first approach can provide faster and easier means for people to get work, while offering greater insight into the many opportunities for work that are out there—improving the experience for workers and businesses alike.”Uber wrote in its blog post announcing the launch of Uber Works
Furthermore, Uber explained, “Uber Works app users can get detailed information about shifts they’re interested in, including information about gross pay, work location and skills, or required attire. Uber Works also serves as a one-stop shop for all time-tracking needs, allowing users to clock in and out and log breaks.”
In addition, Uber has also raised the prices of its food delivery service. It announced its dynamic pricing in the UAE in August that would cost customers between 4 to 10 Dhs depending upon the distance. Previously it charged a flat rate of AED 5.
This move has effectively increased its pricing as it is just AED 1 lower than the previous flat rate, while increasing its range to be almost double the value. This is in addition to having deliveries only within a certain distance from the restaurant.
Earlier this year, Uber Eats also introduced a complicated order fee structure In the United States, which includes a delivery fee, a service fee, as well as a small order fee.
The Verge reported that the new fee structure saved customers a few cents or a couple of dollars in some cases, while in others, costs racked up.
In recent news, Uber has also launched its helicopter services in New York that caters to the high-end market. It allows people to easily book rides with the Uber Copter through the app, which does cost a couple hundred dollars depending upon the distance.
Will Uber’s pivoting and diversification strategy show positive results? That is the question that only time will answer.