Uber expects to make a multi-billion write-off in connection with the corona crisis. According to the company behind the taxi app of the same name, the situation clearly presses on the results, but much is still uncertain. Hence, previous financial projections for 2020 are withdrawn.
Investment amortization is likely to be $ 1.9 billion to $ 2.2 billion. Uber will only release its actual first quarter figures later. Then it will probably become more clear.
Last month, the company pledged another 10 million free rides and food deliveries to health care workers, seniors and those in need during the lockdown period introduced to stem the spread of the new coronavirus. A financial support program for drivers and delivery workers was also launched. According to Uber, the financial impact of the latter scheme in the big picture is limited to a maximum of more than $ 100 million over the first two quarters.
Taxi journeys have fallen by as much as 70 percent in some severely affected cities. But the company could likely make up for some of this lack of success with meal delivery service Uber Eats. It has been working overtime lately because many people worldwide are sitting at home and ordering meals from home.
About the author: John Campbell
John Campbell is the godfather of Polimedia and the oldest author from the whole team. His occasional guidance is crucial for everyone he advises.