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Uber is 'recession-resistant' and might cost users less if a downturn comes, CEO Dara Khosrowshahi says

✇Business Insider
By:Alex Bitter
Dara Khosrowshahi
Uber CEO Dara Khosrowshahi says Uber could get cheaper if a recession comes.

REUTERS/Anushree Fadnavis

  • Rides and deliveries through Uber could get cheaper in a recession, CEO Dara Khosrowshahi said.
  • More people could sign up to work for the app, making Uber's labor costs lower, he said.
  • Uber is "recession-resistant," Khosrowshahi said.

Your ride to the airport or Friday-night dinner delivery through Uber might cost less if an economic downturn arrives, according to its CEO.

If the economy enters a recession, more people could sign up to drive and deliver for Uber, Dara Khosrowshahi said on Friday.

"If there is more unemployment, the cost of Uber will come down, because, to some extent, the cost of labor comes down," Khosrowshahi said at the Semafor World Economy Summit in Washington, D.C.

Khosrowshahi said that Uber tends to be "recession-resistant" since many people still want groceries, restaurant delivery, rides around town, and other "everyday use cases" — even if they cut back spending in other areas.

"You may put off going on vacation in Europe this summer, but you're still going to treat your family to a nice dinner," he said. "We specialize in small treats, not big treats."

Consumers have turned to said small treats when the economy — and their income — have deteriorated in the past.

Lipstick sales, for instance, rose during the 2001 recession as some shoppers looked to makeup as an affordable luxury even as they avoided larger purchases.

Economists, executives, and others worry that a recession could be sparked this year by President Donald Trump's tariffs.

Many retailers and consumer brands have said that they will pass the costs of the tariffs to shoppers, leading to higher prices on store shelves and online after years of post-pandemic inflation.

While shoppers pulled back spending in many areas last year, many did keep paying to have what they bought delivered through services including DoorDash, Instacart, and Uber Eats, earnings reports at the time showed.

Getting work on Uber and other gig apps might not be so easy for laid-off workers and others in a recession, though.

Current gig workers have told Business Insider that many apps are already saturated with people looking to claim work, and that some even have wait lists for prospective independent contractors.

Do you have a story to share about Uber or other gig work apps? Contact this reporter at [email protected] or 808-854-4501.

Read the original article on Business Insider

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I went to Primark and saw why the fast-fashion retailer keeps opening stores in the US

✇Business Insider
By:Alex Bitter
The reporter stands outside of the entrance to a Primark store in Virginia
The reporter outside Primark

Alex Bitter/BI

  • Primark has a big presence in Europe, but it's now opening clothing stores in the US.
  • The chain sells affordable items, putting it in competition with Old Navy and T.J. Maxx.
  • I visited a Primark store in Virginia to see what it's like.

You've probably heard of T.J. Maxx or Forever 21 as places to buy cheap clothes.

But for US shoppers, Primark might not be a familiar name — yet.

The Ireland-based retailer has 460 stores globally, most in the UK and Europe. The company sells "affordable choices for everyone," according to its website. Owned by Associated British Foods, it has become as familiar a name in the UK for inexpensive clothing as Old Navy in the US.

It has also spent the past decade operating stores in the US, especially in the southern states, since opening its first American location in Boston.

Primark said that it had 29 stores in the US at the end of 2024 and plans to open more this year. Among them is an anticipated flagship store in Manhattan's Herald Square — not far from department store Macy's longtime home.

I wanted to see what shopping at Primark is like and whether it differentiates itself enough from other US stores that sell affordable clothing.

The concept makes sense — many shoppers have spent the last few years trying to save money and mitigate the effects of inflation on their budgets. However, several established retailers here in the US already cater to people trying to fill out their wardrobes at reasonable prices.

I went to a store in Virginia that Primark opened last year. Here's what I found:

I visited a Primark store in McLean, Virginia.
The entrance to a Primark store in McLean, Virginia, with the company's name on the front of the building and a blue roof.
The outside entrance to the Primark store

Alex Bitter/BI

This store opened in July and is located in Tysons Corner Center, a major shopping mall in Northern Virginia.

Inside, there was much more than just clothing, such as luggage…
Plastic hard-shell rolling suitcases sit on a shelf at Primark
Rolling suitcases with Stitch and Paw Patrol designs

Alex Bitter/BI

The selection of suitcases reminded me of the product selection you might find at a T.J. Maxx or Ross, even though those off-price retailers source their inventory differently.

…as well as cosmetics.
Cosmetics at a Primark store in the US
A shelf of cosmetics at Primark

Alex Bitter/BI

Many of the products appeared to be Primark's own brands, such as "PS." Shoppers have been buying store brands lately to save money after years of inflation and persistently high prices.

I entered Primark on the second floor and headed downstairs to look for shorts.
A sign showing the two floors of the Primark store at Tysons Corner at the selection available on each
A sign showing what is available on each floor of Primark

Alex Bitter/BI

I bought some shorts at a Primark in the UK a couple of years ago and wanted to see whether I could find a similar pair here in the US.

Downstairs, I saw a wide range of clothes, from these Lionel Messi-themed items…
Hoodies, shirts, and jackets promoting Lionel Messi and Inter Miami sit in a display at at a Primark store
Inter Miami hoodies, jackets, and shirts at Primark

Alex Bitter/BI

This display was an homage to Inter Miami, the soccer team that Messi plays for.

…to these Post Malone T-shirts.
Black-and-white shoes, jean shorts, baseball caps, and white Post Malone t-shirts sit in a display at Primark.
Post Malone T-shirts hang on racks at Primark

Alex Bitter/BI

These shirts were "on-trend must-haves," according to the sign above them.

For fans of American football, there were a few choices as well.
A red Kansas City Chiefs shirt sits on a rack at Primark. A price tag indicates that it costs $10, marked down from $20.
These shirts were half-price, per the price tag.

Alex Bitter/BI

Apparently left over from this year's Super Bowl, these Kansas City Chiefs shirts were deeply discounted.

Simpler, non-branded clothing made up much of the selection at this Primark.
Men's shorts in khaki, grey, and dark blue sit on hangers on a shelf at a Primark store, with children's clothing and signage visible in the background.
Men's shorts at Primark

Alex Bitter/BI

While I couldn't find the same pair of shorts from my UK trip, I did try on a pair of these $24 shorts that came with a belt.

There were also a few non-apparel items, such as these Primark-branded headphones.
Black Primark-branded headphones sit in plastic packaging on a shelf at a Primark store. A sticker indicates that they sell for $8.
These headphones were $8 a set.

Alex Bitter/BI

It seems like Primark is trying to get into more than clothes with its store brands.

The signage at Primark emphasized the prices of most items, from these $5 tank tops for men…
Men's tank tops in white, black, light blue, and green sit folded on a table at Primark. A sign in the middle of the table indicates that they cost $5 each.
Tank tops sitting on a shelf at Primark

Alex Bitter/BI

The tank tops came in a variety of colors.

…to these shirts, which were on clearance.
Shirts and hoodies hang on a rack at Primark, with a sign above showing that they're on clearance and have been marked down to $15 from $24.
A clearance sign at Primark

Alex Bitter/BI

I visited Primark in early April, when the retailer was running specials on many warmer clothes, such as these long-sleeve shirts and hoodies.

A few items at Primark were a little lackluster.
A light grey hoodie at Primark reads "New York City" and has an American flag on it as it hangs on a rack.
A hoodie with an American flag and "New York City" on it.

Alex Bitter/BI

This very simple "New York City" hoodie would likely have been overlooked even at a souvenir shop in Times Square.

I appreciated Primark's variety of jeans.
A selection of jeans folded on a shelf at Primark, with photos of a model hanging above
A denim display at Primark

Alex Bitter/BI

Men's jeans were available in multiple colors and sizes. They were also clearly organized by cut, which made it easy to shop.

I picked out a few things to try on, including some shorts and two pairs of jeans.
The reporter holds a pair of beige shorts and two pairs of jeans at Primark
Shorts and jeans at Primark

Alex Bitter/BI

The clothing prices at Primark varied a bit: Those shorts were $24 a pair with a belt, while one pair of jeans I tried on retailed for $12. Another pair of jeans was marked down to $10 from $20.

I headed to the fitting rooms to see how everything fit.
The reporter in a fitting room at Primark
The reporter in a fitting room

Alex Bitter/BI

Two of the three items — the shorts and the discounted pair of jeans — fit well.

With a couple of purchases in hand, I headed for the checkouts.
A blue-and-white decal on the floor at Primark points the way to the self-checkout kiosks and advises customers that the kiosks only accept card payments.
A floor sticker pointing to the self-checkouts at Primark

Alex Bitter/BI

Only the self-checkouts were open when I visited late on a Thursday morning.

Only a few of the self-checkout kiosks were open, though.
Self-checkout kiosks at a Primark store, with blue-and-white "closed" signs posted over the screens.
Self-checkout kiosks at Primark

Alex Bitter/BI

Most of the dozen or so kiosks at this Primark had "Closed" signs attached to their screens. It wasn't clear whether they had technical issues or if store management was worried about customers stealing things at self-checkout.

Checking out was easy once I found an open kiosk.
A self-checkout kiosk at Primark, including a touch screen, scanner, platforms to place purchases on, and shopping bags.
A self-checkout kiosk at Primark

Alex Bitter/BI

The kiosks only accepted card payments. While I later spotted an open checkout upstairs staffed by a person, it seemed like a tough environment if you wanted or needed to pay with cash.

This receipt scanner is something I haven't seen much of in the US.
A yellow sign past Primark's self-checkout reads "Please scan the barcode on your receipt to EXIT" and directs customers to scan their receipt below.
A sign and receipt scanner at Primark

Alex Bitter/BI

To leave the checkout area, I had to scan my receipt. Once I did, a gate opened, letting me back into the store.

I remembered this scanner from the Primark I visited in the UK. Scanning your receipt at self-checkout seems more common in the UK than in the US, though a few American stores have adopted the tech.

I also wondered how effective this scanner and gate are at limiting or catching theft. The gate led me back onto the sales floor, not directly to a store exit, meaning someone could slip items they hadn't paid for into a bag from the checkout.

I headed back upstairs with my purchases.
The view up an escalator at a Primark store
The escalator at Primark

Alex Bitter/BI

I ended up buying a pair of shorts and a pair of jeans that were on clearance. In total, I spent about $36.

This Primark was located directly next to an Old Navy.
The entrance to an Old Navy store in McLean, Virginia.
The entrance to Old Navy at Tysons Corner

Alex Bitter/BI

Given the similarities with Primark, I ducked in to see what this Old Navy store was like.

The stores seemed quite similar, though I liked the jean selection at Primark better.
The children's clothing section of an Old Navy store in McLean, Virginia.
Old Navy at Tysons Corner

Alex Bitter/BI

The Old Navy store seemed to have a similar selection of things I typically buy, such as men's shorts and button-down shirts.

The selection of men's jeans at Old Navy wasn't quite as wide and organized as what I found at Primark, though. I also didn't see significant makeup and luggage selections like I did at Primark.

Overall, I'd definitely go back to Primark again, though I'll probably keep cross-shopping a lot for clothes.
The reporter stands outside of the entrance to a Primark store in Virginia
The reporter outside Primark

Alex Bitter/BI

It's usually easy to shop at just one or two stores for your weekly grocery haul.

But sticking to just one store for all your clothes can be more difficult. I've filled my wardrobe with stuff from Costco, J. Crew, Macy's, Target, and Zara, not to mention a few secondhand sources.

I liked the fit of the shorts and jeans I bought, so if they hold up well, I'll likely be back to Primark for more at some point. But affordable clothing is a competitive part of retail, and Primark will have to work hard to keep my attention.

Read the original article on Business Insider
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