Date Published: 2020-04-08 06:51:03+00:00
Date Published: 2020-06-04 21:44:51+00:00
Over the past few weeks, Uber rides are increasing again after drastically falling off due to the Coronavirus during March and April, Reuters reports.
The ride-sharing firm reported that trip numbers, while still way below 2019 levels, were now down only 70 percent from last year, as opposed to the 80 percent drop seen in April.
Chief Executive Officer Dara Khosrowshahi, in a call with Bank of America analysts, said the rides are increasing week-over-week, and added that the huge upswing in food delivery requests through Uber Eats has also remained consistent even as lockdowns from the pandemic lift. That will soothe investors’ fears that Uber Eats’ momentum was only temporary during quarantine, Reuters said.
In Hong Kong, where efforts to fight the coronavirus were more successful than most, ridership has recovered almost 80 percent from the worst days of the pandemic, according to Khosorowshahi.
Lyft, Uber’s chief rival, also reported an increase in ridership, with 26 percent more people taking rides as opposed to a month ago. However, like Uber, Lyft’s ridership was still 70 percent weaker than it was a year ago.
Uber and Lyft saw their primary bases of revenue plummet during the pandemic as people were discouraged from taking rides so as to avoid viral infection.
Instead, they had to adapt to the needs of the time, with Uber’s already-established Uber Eats proving a life raft for the company. Lyft set about establishing its own version.
Lyft co-founder and CEO Logan Green has said he doesn’t think the company will come out worse for wear due to cost-saving procedures during the pandemic. The company laid off or furloughed over 1,000 employees and cut pay for others during the pandemic.
Uber also cut around 3,000 jobs to “refocus” the business during the pandemic.
Uber and Lyft employees have had trouble during the pandemic, as evidenced by the lawsuit filed against New York City for reported delays in unemployment payments.
However, UBER Clone startup Zoomcar’s CEO thinks otherwise, especially after the business was shut for two whole months because of the coronavirus lockdown. But as normalcy returns slowly, even before its business as usual, Zoomcar CEO Greg Moran is betting on a 200-300% surge in demand compared to the lockdown period.
In an interview, Moran said that as operations resumed in May, Zoomcar which leases cars on rental and subscription basis is seeing a robust pickup in its overall business. “Last couple of months have been quite a wild ride for everyone and particularly for those in the mobility sector. But the last few weeks in May, we began to gradually build up operations and saw bookings and subscriptions come back in a strong way. We are already seeing a 400% rise in demand and we expect this to settle down at 200-300% over the next few months,” said Moran.
The eight-year old Zoomcar finds itself in the sweet spot where people will avoid ride sharing or shared mobility services and will also not want to invest in new cars because of the financial crunch and recession. To capitalise on this, the company is also offering a 50% discount as well as 50% cashback on bookings, even after it saw no revenues coming in since lockdown.
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