- Uber Technologies is a pioneer in developing ride-sharing solutions, revolutionizing transportation services in 67 countries, currently
- The novel coronavirus pandemic that has swept the planet has had a severe impact on economies worldwide, including the revenue outlooks for companies like Uber
- The company continued to adapt to circumstances through the five revenue segments it now reports through, watching bookings rise in its Eats and Freight segments rise, particularly, as the Rides segment has seen a drop-off
- Uber has continued to pursue new benefits for its mainstay Rides services, such as recently adding a single-rate, multi-stop option in a growing number of cities
- Many countries outside the United States are now reporting significant declines or virtual elimination of the virus, leading to the possible resumption of normal Uber economic activity there
Businesses and sightseeing destinations such as national parks and monuments have gradually begun to reopen access points in June (http://ibn.fm/Z7c8k) as Americans shrug off concerns about infections from the COVID-19 virus and attempt to resume an increasing number of “normal” activities (http://ibn.fm/Qk2hd).
Like most of the nation’s businesses, pioneering transportation facilitator Uber Technologies (NYSE: UBER) has seen revenue expectations drop dramatically for the second quarter, yet the well-known ride-sharing company has demonstrated its resourcefulness by continuing to adapt its operations to changes in present demand, building up its courier services, which appears to be gaining the favor of investors in spite of the current challenges (http://ibn.fm/hSMc7).
Uber began reporting its revenue profile through five segments last year, adding Uber Eats, Freight, Other Bets and Advanced Technologies Group to its ride-sharing operations. Even as a drop in airport traffic and business commuting have hit Uber’s ride-sharing mainstay, the other segments have seen increases in their usefulness. During the first quarter, as international operations began to experience the first effects of the pandemic, gross bookings from Uber’s Rides services suffered a first-ever 5 percent decline but Eats grew 52 percent and Freight grew 55 percent (http://ibn.fm/Fcbk8), providing the company an increase of 8 percent in gross bookings.
CEO Dara Khosrowshahi added to the Eats outlook with a recent statement that Eats gross bookings surged to 89 percent year-over-year growth in April, excluding India (http://ibn.fm/Ds6JX). That could be further enhanced if Uber Eats is successful in its battle against competitors to buy U.S. food delivery company Grubhub, granting Uber a stronger share of a tight food-delivery market in the process (http://ibn.fm/57TqH).
The Rides service was also bolstered recently by the company’s announcement that it will allow riders to select a single $50 per hour rate with multiple stops in select cities (http://ibn.fm/TQh89), targeting customers accustomed to using public transportation to perform daily errands but still wary about collective exposure on bus services as infection rates continue to rise in many states (http://ibn.fm/p9WXg).
Even if the rise in cases continues to hammer away at services in the United States, Uber may find the sun shining in other countries where more cautious strategies and more willing public compliance with government directives have been resulting in a sharp decline in infection rates with virtual elimination of the virus in some geographies (http://ibn.fm/Kd24L).
For a cadre of drivers who don’t depend on Uber work as their sole means of employment, the benefits of Uber’s service profile are numerous: Ridester’s polling reported on the initial financial concerns among drivers immediately after lockdowns began to take effect in America in March, but more recently has reported that “Now, and for the first time ever, we’re hearing comments from drivers telling us what they loved about driving for Uber and Lyft. In the past, it was pretty much all complaints. … But now that the work has been taken away, drivers are starting to realize there were actually some things they loved about it and now miss” (http://ibn.fm/qXG0x).
That includes the flexibility to take a break from working at random times in order to respond to family needs, such as picking kids up from school, to set aside extra money for planned vacations, and for a large number of retired and senior drivers to socialize with other people rather than sit at home.
For more information, visit the company’s website at www.Uber.com.
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