UBER is fully feeling the Coronavirus crisis, the company registering dramatic decreases in the number of rides in some cities where people have stopped using its platform cars. According to UBER representatives, in the city of Seattle, the number of rides made by cars from the platform has decreased by 60% - 70% due to the Coronavirus, the problem being a very big one, but expected in the context of the warnings from the authorities.
UBER he did not provide figures for other cities in the US, but he says that the situation would be similar in other big cities in the US, such as New York, Los Angeles, San Francisco, all having big problems due to infections. UBER expects the same thing to happen in many other cities around the world, it is clear that it has already happened in Italy, as well as in France, probably also in Germany.
UBER: Very BIG Drop in Rides Due to the Coronavirus
UBER the statements are also confirmed by the drivers, only that they say that the number of rides would have decreased by up to 80%, as well as the receipts, which is to be expected, considering the profile of the service. UBER says it has 10 billion dollars available to get through this crisis, a huge amount, but the drivers who work for the platform do not have such large sums available to survive the crisis period we all entered .
"The company's gross bookings in Seattle, a city hit hard by the new coronavirus, have dropped by 60-70 percent, said Dara Khosrowshahi, the company's CEO. We see a similar pattern – if I draw the curves, there is a timing difference – but the curves in SF, LA, NYC have a similar shape. These are really, really uncertain and strange times.”
UBER stopped hiring and promotions for the races made on the platform, having 150 million dollars allocated for promotion, but despite all this, the company will operate without problems until the end of 2020. If the whole crisis will last only a month, or two, then from June the drivers should start making money again, just like UBER, so the world should start getting back to some kind of normal, but no one is sure now what will happen.
UBER is one of the lucky companies, and that's because it has enough money to operate all year, even in the context of the Coronavirus crisis, but few companies have the same luxury now.
