The deadly coronavirus has spread its unfortunate roots in every economic sector and this situation when people are restricted to their homes only, the cab service companies suffer a bit badly. This very situation compelled the US-based cab company, Uber to take steps towards cost reduction. Therefore, the company chose to make a global move and consolidate operations.
Mr. Khosrowa, the CEO of Uber said the company would re-concentrate on its core business of providing cab service and delivering groceries and food. The company started with just the cab services but enhanced itself and offered people to enjoy services from apps like ‘Uber Eats’.
Uber, the ride-hailing platform is undergoing restructuring and as a part of its restructuring effort, it has pulled the shutter down of its Mumbai office but claims to continue its service in the city. It is said that the services in the city will remain unaffected.
In the view of the current coronavirus pandemic, the employees are expected to continue their support towards service through work from home. The company believes that the closure of the office should not be learned as depletion in jobs as well.
The company said in May that it will be refraining six hundred employees from various segments including its driver and rider support, finance, legal, business development, policy, and market verticals from this country.
As the rival company, Ola’s revenue took a hit and plummeted 95% amid lockdown induced by coronavirus the same trend of firing employees was enforced by this company as well. Around fourteen hundred employees were laid off from the company.
Reduction of recruiting teams and customer support by around six thousand seven hundred full-time employee roles and that resulted in the move to lower trip volumes and freezing of current hiring procedure was announced by the company on an international platform.
In the current financial year of 2020, Uber’s net loss has widened up to 2.9 billion dollars in the first 3 months itself from 1.1 billion dollars loss reported in the same period the previous year. Therefore t registered an increase of one hundred and sixty-three percent. The company’s total revenue rose to 14% year-on-year to 3.54 billion dollars.
Mr. Khosrowshahi on a conference call said that expenditure cutbacks of worth 1 billion dollars have been planned by the company because of the business disruptions caused by coronavirus pandemic.
Despite Mumbai being one of the most harshly hit cities by COVID-19, Uber resumed its services last month.
Uber restarted their operations in specific green and orange zones across the nation, taking care of all the possible necessary precautions. The company claimed to take special care about their customers’ safety on their social media platforms as well.
Extending our mandatory mask policy is the right thing to do. Help keep yourself, your driver, and the next rider safe. No Mask, No Ride!https://t.co/pr62p6vhwc— dara khosrowshahi (@dkhos) July 1, 2020
Safety can spread too. From you to the next rider, and from them to the ones after. Just follow every step in the new safety guidelines, because when you're safe, everyone around you is safe too. Let's pledge to be #SaferForEachOther. Know more: https://t.co/Bgm17WHCY9 pic.twitter.com/DD7kTL2msO— Uber India (@Uber_India) June 5, 2020
Before returning to pre-lockdown levels, the demand is continued to remain low and is expected to remain so.