Uber CEO Dara Khosrowshahi said this morning that Democrats’ sweeping midterm victory sent a “very clear message” about the damage inflation has done to American consumers.
During an appearance on CNBC’s Squawk Box, Khosrowshahi said the problem stems from how the economy has evolved since the 2008 financial crisis, as wages have not kept pace with skyrocketing prices.
“When you look at capitalism, there’s capital investment and return on capital, and obviously there’s return on labor,” he said. “If you look over the past 20 years, return on capital has increased very, very significantly. You can’t say the same thing about return on labor.”
The rise of artificial intelligence is only adding to workers’ anxiety, he added.
“AI is an instantiation of capital where, to some extent, capital could replace labor as well, which is rightfully, in some cases, scaring people,” Khosrowshahi said. “But it’s also very, very powerful in its potential.”
Khosrowshahi said he was sharing his opinion and that he is “not a politician.”
When asked how politicians and business leaders should respond, Khosrowshahi pointed to the tax code.
“[The fact that] capital gains are taxed at a lower rate than regular income makes no sense to me,” Khosrowshahi said. “They should be balanced.”
“Whether you should raise one or lower the other one, that’s really up to the folks in power,” he added. “But it doesn’t seem right to me.”
Khosrowshahi has led Uber since 2017, when he replaced cofounder Travis Kalanick amid a series of scandals involving the company’s workplace culture and leadership. Khosrowshahi was previously the CEO of online travel company Expedia.
Uber employs millions of drivers and couriers who work as independent contractors.
Khosrowshahi’s comments came on the same day Uber reported $14.8 billion in third-quarter revenue, up 10% from a year earlier, and $1.4 billion in operating income, up 30%.
The company also said it expects to have about 700 fully driverless vehicles operating on its platform by year-end.