As millions of people stayed home to reduce the spread of the coronavirus – by choice or stay-home orders – Uber lost $1.78 billion in the second quarter of 2020. The gargantuan San Francisco-based app-hailing company brought in $2.24 billion in revenue during the second quarter, down 27% from the same time last year, on a constant currency basis, the company announced in September.
Uber’s food delivery business grew as more people ordered in, but even that division of the company lost about $232 million during the quarter. Uber’s mobility business, which includes ride-hailing and micro-mobility options such as scooters and bikes, saw its revenue shrink to $790 million, down 67% from $2.38 billion a year ago.
Uber’s quarterly losses included $382 million in restructuring and related charges as the company laid off 6,700 people – a quarter of its workforce – in May. Uber said at the time that it would be closing or consolidating 45 offices worldwide.
The only place the company’s revenue didn’t fall was the Asia-Pacific region.
In addition to struggling with reduced demand for rides during the pandemic, Uber has been hit with lawsuits challenging the way it treats its drivers. California’s Labor Commissioner Lilia Garcia-Brower filed complaints against Uber and Lyft in September, saying the companies committed wage theft by misclassifying employees as independent contractors. The suit seeks to recover civil penalties and unpaid overtime and minimum wage.
Source: Santa Monica Daily Press