The isolation caused by the new crown virus severely damaged Ubers core network car Hailing business, which accounted for three quarters of the companys revenue before the outbreak of the new crown epidemic. Uber said its online car Hailing business fell 80% in April from the same period last year.
We see some signs of recovery, but we dont have a clear vision of the pace and scale of the recovery, koslosasi said in a letter to employees Ubereats has always been a bright spot during the outbreak, but the business is not enough to cover our expenses..
Since its inception in 2009, Uber has rapidly become one of the most watched start-ups in the world, changing the way millions of people travel. Travis kalanick, its co-founder, envisions a future in which autonomous taxis roam the streets, delivery drones fly overhead, and Uber is at the center of it all.
However, with the development of the company, it has spent a lot of money to expand its business to other areas besides the network car Hailing service, and has accumulated billions of dollars in losses in the process. Even before the outbreak, investor enthusiasm began to wane. Ubers much anticipated initial public offering last year turned out to be disappointing, with Wall Street increasingly looking to see Uber and other well-known technology companies make profits.
Kosrosasi was appointed in 2017 after a series of scandals led to the fall of kalanik. Last year, he pulled Uber out of the lower market and laid off more than 1100 employees. In February, before the outbreak hit Ubers local market, kosrosasi promised to make Uber profitable by the end of 2020, a year ahead of previous expectations. However, he recently postponed the schedule to next year.
Uber said in a regulatory filing that it would charge up to $260 million in restructuring measures announced this month. Its shares closed 3.54% higher in Monday trading, roughly the same as the broader market.
According to people familiar with the matter, US employees will be hit hardest by layoffs. Uber will close one of its offices in downtown San Francisco, which has more than 500 employees. The company is also considering moving its Asian headquarters out of Singapore. LYFT, Ubers smaller rival, said last month that it would cut about 17% of its workforce, while also requiring more employees to take unpaid leave and slashing wages in an effort to cut costs.
Koslosasi said he hopes to adjust around the core business and establish an organizational structure to avoid duplication of functions. He announced that Andrew MacDonald, senior vice president of Ubers car Hailing business, has been appointed as the head of the restructured mobile team, which will cover all aspects of Ubers car Hailing business, including establishing a partnership with public transport. Pierre Dimitri Gore Coty, ubereats vice president, was named head of the delivery team, which will include grocery deliveries.
Although these measures should help control costs, as governments begin to loosen the ban on epidemic prevention and control, Uber faces a fundamental problem: will people resume using its core network car Hailing service? If so, how does the company ensure their safety to drivers and passengers? Uber has allocated $50 million to buy protective clothing for drivers, including masks, disinfectant spray and wet wipes. Starting Monday, the Uber app will require drivers in most parts of the world to take self portraits to verify that they are wearing masks. Passengers also need to make sure they are wearing masks.
At the same time, Uber faces imminent regulatory hurdles. Earlier this month, California sued Uber and LYFT, accusing them of mistaking drivers as independent contractors and depriving them of paid sick leave and unemployment insurance, issues that were the focus of attention during the outbreak. Californias part-time economy law, which came into force on January 1, aims to force companies to classify drivers as employees. (small)