- During the last years covid-19 pandemic lockdowns, Uber’s mobility unit was hit hard and decreased drastically in demand for ride sharing.
- As states begin to relax their restriction due to the roll outs of vaccines, the tech giant Uber has seen a pickup in terms of demands for ride hailing lately.
- Last Week, US$250 million is the said amount that Uber is willing to spend in a one-time “stimulus” package to get back drivers on the road..
A pickup in demand for its ride-hailing business is signalled by Uber on Monday in relation with the CNBC article as they posted record gross bookings for the month of March.
Uber’s mobility was also hit hard by the covid-19 pandemic last year as lockdown restrictions led to the downfall and drastic decrease in demands for ride-sharing services. However, a boom in food delivery helped limit losses in 2020.
Uber also said that its mobility segment, or ride-hailing business, posted it’s best performance since march 2020, with a year run rate of US$30 billion in total. It was up 9% from a month earlier and its delivery unit reached an annual record run rate of US$52 billion in March, more than 100% from the previous year.
“As vaccination makes its quick action in the United States”, we are observing that consumer demands more on Mobility and is recovering in a hasty manner than driver’s availability, and consumer’s demand for Delivery is unstoppable as it exceeds courier availability.” Uber said in a filing with the SEC.
During the pre market trading in the United States, shares of Uber climbed more than 2% and it’s an astonishing recovery.
Uber declared their plans last week to spend US$250 million in a one-time “stimulus” package aiming to get drivers back on the road. The proceeds will serve as bonuses for the drivers, guaranteed pay and on-boarding new drivers. The plan is said to come as the state started to pull back some of their pandemic restrictions and vaccines roll out.
Uber had a terrible loss of nearly US$6.8 billion last year, and there have long been uncertainties about whether the tech giant’s business model works. But Uber believes that it can still become profitable by the end of 2021 despite the situation they are dealing with on an adjusted EBITDA basis. While Uber’s main rival in the U.S. Lyft, has made a similar commitment.
Last month, the tech giant reclassified all 70,000 of its U.K. drivers as employees entitling them to a minimum wage and other employment protections after the country’s Supreme Court a group of Uber drivers should be classified as employees, and not as independent contractors. The move is expected because Uber at a higher cost and could become a forking for the gig economy.
Covid-19 definite took a smash on the economy and as the roll out of vaccines prosper the economy also prospers. Same goes to the tech giant Uber who suffered terrible loss but there’s always light after the tunnel. In order to enjoy your full economic news experience and update, watch the latest news on a good TV like Apple TV 4K HD 32GB or Apple iPad Pro (32GB, Wi-Fi, Space Gray) 12.9in Tablet (Renewed).