SAN FRANCISCO - Uber Technologies Inc . (NYSE:UBER) has launched a new pilot program called Uber Tasks, aimed at diversifying its business model in the face of its slowest revenue growth in recent years. The initiative, unveiled today, allows users of the Uber app to hire drivers for various household tasks, marking a significant shift from the company's core offerings of ride-sharing and delivery services.
The service is designed to function similarly to online marketplaces like TaskRabbit or Thumbtack but is tailored specifically for Uber's existing workforce, including drivers and couriers. According to Conor Ferguson, a spokesperson for Uber, the platform will offer transparency by showing potential earnings before task acceptance. This feature is part of Uber's effort to create more earning opportunities for its gig workers.
Uber Tasks will initially roll out in two locations: Fort Myers, Florida, and Edmonton, Alberta. The platform will list a range of tasks that users can request assistance with, such as snow removal and furniture assembly.
This strategic move comes as the company reported its slowest revenue growth in two-and-a-half years, missing analysts' expectations. While Uber positions this expansion as a way to provide additional earning opportunities for its drivers and couriers, some critics suggest that the underlying motive is to boost the company's financial performance.
Uber's new service underscores the company's commitment to evolving its business model and exploring new avenues for growth as it navigates a challenging economic environment.
InvestingPro Insights
Based on InvestingPro's real-time data and tips, Uber is a prominent player in the Ground Transportation industry. With a market cap of $107.5B, Uber has been profitable over the last twelve months, and analysts predict that the company will continue to be profitable this year. Additionally, Uber's net income is expected to grow this year, with 6 analysts having revised their earnings upwards for the upcoming period.
InvestingPro's data shows that Uber's revenue for the last twelve months as of Q3 2023 is $35.95B USD, with a revenue growth of 23.77%. Despite trading at a high P/E ratio of 100.25, Uber's stock is seen as a good investment due to its strong returns over the last year and the last three months.
It's worth noting that Uber's recent venture into the gig economy with Uber Tasks could be a strategic move to diversify its business model and boost its financial performance. For more insights and tips, consider exploring the InvestingPro product, which currently lists 18 additional tips for Uber.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.