Uber posts 3 billion dollar loss amidst Coronavirus crisis
Saturday, 09 May 2020
Uber made a loss of almost 3 billion US dollars during the first quarter of 2020. The negative results are mainly due to the Covid-19 pandemic according to its CEO Dara Khosrowshahi.
On the other hand, its food delivery service UberEats grew 53% during the same period, to 819 million USD in revenues, as lockdown measures made the service an appealing solution. This was however not enough to offset the large loss of its main service.
“We are encouraged by the increase of food deliveries and by first signs of certain markets opening up again following lockdown measures,” Dara Khosrowshahi told the press during the earnings announcement.
The San Fransisco based company, which initially had expected to get to profitability by the end of 2020, may now need to delay that goal, the company also announced. The stock price of the company immediately declined 2% upon the announcement.
Earlier this week, Uber also announced that it will cut 3,799 employees from its payroll due to the crisis. The reduction in workforce represents 14% of its total staff.