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Lots of people will drive for Uber during a recession to make an extra buck perhaps the extra supply allows them to reduce subsidies and turn a profit on a per

• ehnto 7y ago
  So fewer riders, more driver supply. Sounds like it would make the recession hit a service like Uber harder. I was talking to a taxi driver who noted that leading up to the end of financial year, taxi rides drop significantly, as discretionary spending dries up from the public sector. I wonder if you could gauge the same effect for Uber in public sector heavy cities to get a glimpse at what a financial crisis might look like to such a platform.
• zrobotics 7y ago
  As I said, they might be able to pay drivers less during a recession but if total ridership is down they are still going to be in trouble during a recession. If they have problems reaching profitability now I don't understand how a recession will do anything but harm them.
  • ghaff 7y ago
    And drivers are probably already somewhere around minimum wage a lot of the time. Recession or not, there's some price floor under which even the relatively desperate are not going to drive for willingly. If travel is down, young urbanites aren't taking Ubers to dinner, etc., it's hard not to see the business decreasing. Uber may not be a luxury for everyone who uses it, but it is for many.