|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Business & Economy (Click here for more)

Uber Loses $2.9 Billion as Demand for Rides Falls

SAN FRANCISCO – Uber Technologies, Inc. said on Thursday that it lost $2.95 billion in the first quarter, triple the negative result during the same period in 2019, as its core ride-hailing business suffered amid the COVID-19 lockdown.

Revenue actually rose by more than $500 million compared with Q1 last year, but Uber had to contend with higher costs due to the pandemic.

The San Francisco-based giant also posted $2.1 billion in impairment charges as a consequence of stakes it holds in other companies.

The numbers translate to a loss of $1.70 per share.

The presentation of the first-quarter results followed Uber’s announcement Wednesday of the layoff of 3,700 employees, amounting to around 14% of its workforce, and the news that CEO Dara Khosrowshahi will forgo his roughly $1 million base salary for the balance of this year.

Bookings for rides were down 5% in January-March from the first quarter of 2019, but plummeted 80% in early April before beginning to rebound three weeks ago, Khosrowshahi said Thursday in a conference call with analysts and the media.

And the flip side in the drop in demand for rides was a 52% increase in orders for the firm’s food-delivery unit, Uber Eats.

Uber Freight saw its businesses soar 55% compared with Q1 last year.

The number of active monthly users of Uber Rides climbed 11% to 103 million over the 12 months ending March 31 and the volume of rides rose 7% to 1.65 billion in the first quarter of 2020.

Almost all of that growth, however, took place in January and February, before the United States became the global epicenter of the COVID-19 pandemic.

“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,” Khosrowshahi said.

Uber’s less than stellar results seemed to leave investors unfazed, as the company’s share price jumped 9.15% to $34.17 in after-hours electronic trading on the New York Stock Exchange.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2020 © All rights reserved