Uber plunges to £2.3BILLION loss as coronavirus lockdowns devastate bookings
UBER lost £2.3 billion in the first quarter of 2020 as its bookings were hammered by coronavirus lockdowns.
However company bosses are now looking to their growing food delivery business and aggressive cost-cutting to ease the pain.
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The company's loss for the January to March period is nearly three times worse than the £800m loss reported a year earlier.
However, there are signs things are picking up as the number of people riding with Uber has increased in each of the last three weeks.
Meanwhile, Uber Eats revenue was £652m – which is UP more than 50 per cent compared to the same time 12 months ago.
The Silicon Valley firm admitted its hail-a-ride business had been "hit hard by the ongoing pandemic".
The financial results come just a day after it announced it was to cut 3,700 jobs as the outbreak had led to a huge slump in ride bookings.
However, chief executive Dara Khosrowshahi said business in the US had started to recover after some states reopened following lengthy lockdowns.
He said: "While our rides business has been hit hard by the ongoing pandemic, we have taken quick action to preserve the strength of our balance sheet, focus additional resources on Uber Eats, and prepare us for any recovery scenario.
The company’s shares initially dipped but then shot up as much as 10 per cent as Khosrowshahi expressed optimism that ride volume is picking up again after bottoming out.
Most of Uber's quarterly losses came from a £1.7bn writedown on the value of the company's overseas investments including in Chinese ride-hailing giant Didi and Singapore-based Grab.
Demand for both services has been hit hard during the current crisis.
On Thursday, Uber said it was cutting about 14 per cent of its workforce, as people either stay indoors or try to limit contact with others.
Its main US rival Lyft announced last month it would lay off 982 people, or 17 per cent of its workforce because of plummeting demand.
Earlier today we reported how Uber is urging passengers to wear a mask, sit in the back seat and open a window during their journey.
The ride-sharing app are taking the precautions to help stop the spread of the killer pandemic.
Those hailing a cab will now see a message advising that they wash their hands before their journey, wear face protection and open a window for ventilation.
Executives from Uber have already voted to make the new mask-wearing policy compulsory in the US, but it will also be rolled out in other countries.
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