If you depend on Uber for transportation in your hometown or during a vacation, the cost of a ride just might be getting a little easier on the wallet, according to the company’s CEO.
In an interview with CNBC, Dara Khosrowshahi said prices have been driven upward over the last year as a result of higher demand and fewer drivers. However, the company expects the numbers to even out by the end of the year.
“What we did was, early on we identified our need to bring on more drivers onto the platform,” Khosrowshahi told the network. “So, in the second quarter, we really leaned into supply, especially in the United States, to reinvigorate our driver base and grow our driver base in the U.S.”
The CEO told CNBC the company’s strategy was to invest millions in an effort to lure drivers back to work, and that investment is starting to pay off as more drivers are getting back behind the wheel. Officials also are expecting the supply-and-demand challenges they have been facing amid the pandemic to level out and travel habits reach a more normal pattern.
“I do think what we’ll see is pricing is going to ease up as we go into the back half of the year and volume will especially accelerate,” Khosrowshahi told CNBC.
During the pandemic, Uber took a financial hit, and Khosrowshahi told CNBC it is back on the road to profitability after the company announced that it anticipates its EBITA will fall between a loss of $25 million to a profit of $25 million, an adjustment from an initial forecast of $100 million of red ink.
“We are very clearly on the path to profitability,” Khosrowshahi said in the interview.
Identifying the issue and reacting quickly was key to the turnaround, Khosrowshahi said.
While demand is expected to remain high as the holidays approach, a larger corps of drivers and increased benefits for Uber employees could ultimately lead to lower fares, according to the International Business Times.