Uber Sees Ride Volume Increasing
May 8, 2020
Uber Technologies reported financial results for the quarter ended March 31, 2020. The firm had a loss of $1.70 per share with revenue of $3.54 billion. investors were looking for a loss of 88 cents per share and revenue of $3.5 billion.
Uber CEO Dara Khosrowshahi was up beat that ride volume is picking up again after bottoming out in mid-April.
“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,” said Dara Khosrowshahi, CEO. “Along with the surge in food delivery, we are encouraged by the early signs we are seeing in markets that are beginning to open back up. Our global footprint and highly variable cost structure remain an important advantage, as our expectation is that the Rides recovery will vary by city and country.”
“Our ample liquidity provides us with substantial flexibility to navigate the current crisis, but we are being proactive and taking actions to emerge stronger and more focused as a company,” said Nelson Chai, CFO. “We have recently exited eight unprofitable Eats markets, significantly reduced the size of our customer support and recruiting teams, and merged our JUMP unit into Lime. Building on the steps we have already taken, we are continuing to look at all levers to ensure our core Rides and Eats businesses emerge from this crisis stronger than ever.”
Highlights for First Quarter 2020