Uber is launching an app aimed at pairing businesses with temporary workers in an effort to bring in more revenue as the company struggles to turn a profit
By Preetika Rana Oct. 3, 2019 5:44 am ET Uber Technologies Inc. is launching an app aimed at pairing businesses with temporary workers in an effort to bring in more revenue as the company struggles to turn a profit.
The app enables users to sift through jobs by location, pay and skills, Uber said, adding that it spent the past year testing it. The law threatens to upend Uber’s business model, which relies on gig workers such as drivers, and further erode its bottom line. The company in August posted its largest quarterly loss, weighed down by competition in growth markets such as Latin America, slowing growth in its core ride-hailing business and one-time expenses related to its initial public offering. Revenue grew 14% to $3.17 billion in the second quarter, Uber’s smallest quarterly increase.
Uber Works won’t be the first to connect temporary workers with potential employers. Venture-capital firms including Sequoia Capital back other players that offer a similar service. Nevertheless, it shows how aggressively Uber is expanding into new areas.
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