Uber is offloading Jump, its bike and scooter business, to Lime, a company in which it is investing $85M. Jump had been losing about $60M a quarter.
On Wednesday, San Francisco-based Uber said it was cutting 3,700 full-time workers, or about 14% of its workforce, as people avoiding contagion either stay indoors or try to limit contact with others. Its main U.S. rival Lyft announced last month it would lay off 982 people, or 17% of its workforce because of plummeting demand. Careem, Uber's subsidiary in the Middle East, cut its workforce by 31%.
"At a time when our rides business is down significantly due to shelter-in-place, our Eats business is surging," Khosrowshahi said on a conference call with investors."The big opportunity we thought Eats was just got bigger." Gross bookings grew 8% to $15.8 billion, with 54% growth in the food delivery business and a 3% decline in rides, on a constant currency basis.
Uber's bottom line was hurt in the first quarter when the value of its investments in Chinese ride-hailing giant Didi, Singapore-based Grab and others plummeted by $2.1 billion as demand collapsed in those regions. The challenges are continuing in the second quarter. In April, rides were down 80% globally compared to last year, Khosrowshahi said. But rides have been increasing for the past three weeks and bookings in large cities across Georgia and Texas, two states that started reopening, are up 43% and 50% respectively from their lowest points, he said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus updates: World's 2nd-largest continent sees 42% jump in COVID-19 casesCORONAVIRUS LATEST: — U.K. death toll becomes highest in Europe. — Africa sees 42% jump in COVID-19 cases over past week. — European Union faces 'recession of historic proportions this year.' — South Korea reports lowest daily case tally in 78 days.
Read more »
Behind closed doors, France's COVID-19 death toll likely to jumpIn April, an elderly resident living in Seine-Saint-Denis, France's poorest commune on the edge of Paris, went to hospital worried they had COVID-19. The test returned negative and the pensioner was sent home. Ten days later they were found dead.
Read more »
Lyft shares jump 15% as company reports more riders than last year despite coronavirusLyft shares rise as company reports more riders than last year despite coronavirus.
Read more »
Work Your Legs and Elevate Your Heart Rate With the Simple-Yet-Effective Squat JumpWhile regular squats are great, squat jumps offer a new take on the traditional squat — one that you're definitely going to feel in your quads.
Read more »