Uber has recorded a $1.8 billion loss in revenue as reported yesterday on the stock index as its ride hailing services suffered a major hit due to the coronavirus pandemic.
A news which saw its shares fall by as much as 4% on the stock market. The company lost as much as 75 percent demand in ride hailing requests .
The CEO, Khosrowshahi explained that indeed demand for the ride hailing services has dropped however there is a new demand for the Uber Eat segment of the business as more people order in due to the pandemic.
Regarding long term profitability, he mentioned that a lot of uncertainties remained as some economies have jump started back to their normal routines while others remain painfully slow but there are no signs of a permanent business damage to come and there is hope for profitability.
Uber and Lyft are still under duress in California as riders are classified as independent contractors as opposed to employees resulting in reduced earnings from the app which goes against a recently enacted state law.
