The August headline inflation report sent stocks lower on Tuesday after the Consumer Price Index rose 0.1% for the month despite lower gas prices. But the report isn’t all bad for companies like Uber, which said its supply side may actually benefit from the inflationary environment.
CEO Dara Khosrowshahi told CNBC’s “TechCheck” on Monday that as expenses rise and people pay more for necessities like groceries, they’re also sharing the drive for Uber.
“If anything, 72% of drivers in the United States say one of their Uber driving considerations was actually inflation,” he said.
SoftBank invested in Uber in 2018 and was once its largest shareholder. But the Japanese giant is facing mounting losses in its Vision Fund investment unit and is selling stakes in companies to raise cash.
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Khosrowshahi said inflation is “everywhere,” but Uber sees no signs of weakening as a result.
The unexpectedly high August report is one of the last the Fed will see before its September 20-21 meeting, and it could raise interest rates further for longer than investors expect.
Uber shares fell more than 3% in the afternoon, amid a broader slump in tech stocks that sent the tech-heavy Nasdaq down nearly 4%.