Uber's new strategy could affect passengers' pockets

Uber has decided to cut the budget allocated to passenger discounts and redirect it toward driver incentives, a strategy that CEO Dara Khosrowshahi said could raise fares on some trips. The shift comes as the company struggles with driver shortages and rising fuel costs. The move matters because it signals Uber is prioritizing supply-side reliability over rider acquisition, potentially lifting per-trip pricing and affecting demand. Investors will watch whether higher incentives succeed in drawing drivers back and how riders respond to steeper fares in the coming quarters.