The world is currently grappling with the pandemic due to which several businesses globally are on the verge of bankruptcy. The transportation, hospitality business has been severely affected by the worldwide coronavirus epidemic. Uber, which provides the facility to book cabs from its mobile app, incurred a loss of $ 2.9 billion in the first quarter of 2020, i.e. January to March.
Uber has also announced the closing of its food delivery app UberEats in 7 countries of the world. The CEO of Uber has even decided not to take any salary for the next year. The passenger has fallen by 80 percent worldwide, and Uber is expected to perform poorly in the April-June quarter as well.
Transport, logistics and cab service have suffered huge losses due to lockdown worldwide. In a regulatory filing filed by Uber with the US Securities and Exchange Commission (SEC), Uber now plans to reduce its operating expenses due to the economic challenges and uncertainty posed by the coronavirus epidemic and its impact on business. These plans would now even include mass layoffs of employees. The company has taken steps to maintain the balance sheet by cost-cutting methods.
In a letter to employees, Uber’s CEO stated, “With our ride trip volumes declining significantly, our need for in-person support, including communication operations, has reduced significantly and there is no longer enough work for recruiters.”
Uber is even eliminating 3,700 full-time employees, 14 percent of the total workforce. On the other hand, Uber’s main competitor in the US, Lift, said that due to the drop in demand, it is removing 982 employees (17 percent of total employees). Not only this, a subsidiary of Uber in West Asia, has also fired 31 percent of its employees. Meanwhile, in India, Uber and Ola have started its operation in the green zone. Recently, the world’s largest and popular gym brand Gold’s Gym have declared themselves bankrupt and have decided to shut down its Gyms.