Uber spoke about the consequences of work during the coronavirus (COVID-19)

Uber spoke about the consequences of work during the coronavirus (COVID-19)

August 8, 2020 0 By autotimesnews

Taxi service Uber said the number of taxi orders dropped during the coronavirus pandemic, but the food delivery business doubled. Uber is still aiming for profitability until the end of 2021.

Uber Technologies customers more than doubled orders from food delivery service Uber Eats in the second quarter of this year, but demand for taxi rides has rebounded only marginally after the coronavirus pandemic.

The company said that despite these broader challenges, it is sticking to its goal of being profitable on an adjusted basis by the end of 2021 through stringent cost-cutting measures. Uber recorded an adjusted loss before interest, taxes, depreciation and amortization of $ 837 million in the second quarter of 2020.

Uber CEO Dara Khosrowshahi told analysts in a conference call that the speed of recovery depends on the ability of different countries to contain the virus, with the recovery so far led by Asia, with the exception of India.

In Hong Kong and New Zealand, travel bookings occasionally surpassed pre-COVID-19 levels, while travel requests in Germany, France and Spain dropped to 35% from a year ago.

“Our global geographic presence remains a huge asset,” Khosrowshahi said.

Revenue for food delivery service Uber Eats doubled to $ 1.2 billion, boosted by rising demand for delivery as Americans mostly stay at home. Uber expanded its supply last month by announcing its $ 2.65 billion acquisition of Postmates Inc to expand its FMCG business.

Uber Eats, whose gross orders more than doubled, cut its losses by posting an adjusted loss of $ 232 million in the second quarter. Uber chief financial officer Nelson Chay said the company expects third-quarter losses to be similar.