Uber released its financial results for the first fiscal quarter of 2020 (via CNBC). Some analysts had predicted a significant decrease in revenue due to the coronavirus pandemic, as transportation is stopped in much of the world. Although the fall is not as loud as expected, Uber Eats was in charge of enduring the crisis and save, to a certain extent, the company’s economic outlook.
Uber Eats grew 54% over the same period last year. The transportation business fell 80%
Uber reported revenue of $ 3.54 billion. However, they lost a whopping $ 2.94 billion. The figure represents the company’s biggest loss in the last three quarters. Despite the above, those led by Dara Khosrowshahi clarify that, of the total lost, $ 2.1 billion correspond to the fall in their investments in other companies. And it is that practically the entire economic sector has been harmed by the health emergency.
The salvageable thing is that Uber Eats has grown 54% Compared to the same period of the previous year. There is no doubt that food delivery has become a critical service during the pandemic. Millions of people are confined and requesting food at home is common. Uber notes that, in addition to increasing delivery requests among businesses that already belonged to the program, many other restaurants joined Eats to try to resist the crisis.
In fact, on Uber they believe that the “cultural changes” that COVID-19 will leave will be lasting. In other words, they hope that Uber Eats will continue to be a dominant service after the passage of the coronavirus. The opposite occurred with transportation, since Uber’s main business fell 80% compared to Q1 2019. However, the company was already expecting a general crash across the sector.
Uber Eats does not prevent the dismissal of employees
Yesterday, Uber reported that will fire 14% of its workforce, which is equal to 3,700 workers. The cause is the same: the coronavirus. However, it should be noted that the figure does not include drivers. At a time when travel and tourism have completely collapsed, it is to be expected that many people dependent on their job as drivers will be in quite a difficult situation.
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