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UBER RAISED $8.1 Billion Today! How will this affect the Bay Area Job Market ?

Posted: 05.09.2019
EO Jobs & Careers
May 9, 2019
SAN JOSE, California
Today, Uber, one of the most ambitious and controversial technology companies to emerge in recent years, had its Initial Public Offering (IPO).  As experts had predicted Uber raised $8.1 billion in its IPO. It now has a market value of $75.5 billion.  It sold 180 shares at a price of $45 each.    To the average person that is very interesting considering that, since its inception, UBER has lost a ton of money and it continues to do so.  Nonetheless, the IPO has raised alot of cash. Uber drivers around the world had a “High-Tech Walkout” yesterday when they turned off their Uber App.  

 It is not clear how many drivers participated in the high-tech walkout.  In response to the Uber driver’s “High-Tech Walkout”, Uber issued a statement saying that  “Drivers are at the heart of our service—we can’t succeed without them—and thousands of people come into work at Uber every day focused on how to make their experience better, on and off the road,”.
A recent report, labor statistics analyst stated that it estimates Uber drivers make an hourly wage of between $9.50 and $10.50 per hour, after considering operating costs such as gas, maintenance, insurance.  Nine (9) cities in the Bay Area have a minimum wage of at least $15 per hour.   However, this rate does not currently apply to drivers because they are considered Contractors and not Employees.  With Billions of dollars to be put on the Uber Balance sheet after the IPO lets see how the tight job market in the Bay Area will affect the Uber business model in its push for profitability.  When Uber started in 2009, there was a lot of people looking for work and the Uber option was a good one.  However, with a near record low unemployment rate in the Bay Area of 4.3-percent, with the Bay Area the biggest driver of jobs in the State, drivers, contractors and employees, will have more options for work.    Congratulations to Uber on its IPO and we shall see how drivers compensation is impacted in the coming months as Uber now pushes towards increasing its value for its shareholders.

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