The Pandemic has more or less hit every business across the globe, the American taxi giant Uber is one of the victims of the pandemic slowdown. Sources have reported that the ride hailing arm of the company is not completely recovered from the economic slowdown.
Whereas Uber Eats, the food delivery section of the company has witnessed double growth in the demand in the second quarter.
Uber is still struggling to achieve its goal of becoming profitable before 2021. They have taken necessary measures like cost-cutting to cut the losses, but despite that it has reported a loss of $837 million in the recent quarter.
The stocks fell by 2.9%, trading at $33.72. Uber’s main business is dependent on the ride hailing service, which was down by 75% since 2019. Dara Khosrowshahi, CEO, has said on Thursday’s concall that their company’s recovery is dependent upon the recovery of the countries from the pandemic.
Uber has noticed a surge in ride bookings in locations like Hong Kong and New Zealand. Whereas Spain, Germany and France haven’t recovered much from the decline of last year.
On Thursday, it was reported that it has suffered a massive net loss of $1.8 in the second quarter. Uber had to lay off 23% of its workforce during pandemic. The active users of Ubers were reduced to 55 million from 99 million.
That’s almost half of the customers. Revenue of the company fell to $2.24 billion, which was down by 29%.
Uber Eats, a food-delivery arm of Uber has reported an increased demand in the orders. The orders were doubled to $1.2 billion. The major reason behind it is the lockdowns in the pandemic. Uber has strategically acquired a company called Postmates Inc for the delivery of daily consumer goods. The acquisition has cost Uber almost $2.65 billion.