Uber and Lyft temporarily canceled service to joint missions due to coronavirus

the Services of a taxi of Uber and Lyft, was suspended from the service of joint visits because of the epidemic caused by a coronavirus.

the Option of UberPool is not available in the US, Canada, London and Paris. Lyft had also canceled service in all markets where the company operates. Uber issued a call to travel only if they are really needed.

Refusal of services joint visits will have a major impact on the financial performance of companies, says MarketWatch. However, Uber has faced a decline in the number of orders for primary service by 50% in closed cities such as Seattle, where employees work at home, reported Monday the financial Director of Uber Nelson Tea (Nelson Chai).

the Demand for the delivery service-Uber Eats remains high, said Chai. At that time restaurants and cafes in some cities are banned, and in other undesirable food is still allowed almost everywhere. Uber announced plans to help 100 thousand restaurants to keep the business, refusing delivery and increasing spending on marketing campaign.

Chapter Uber is confident that the company will recover quickly after the crisis. According to Nelson’s Tea, as people are gradually returning to the usual routine, the drawdown is reduced, for example in Hong Kong, the drop in orders was 45%, now 30%.

in addition, the company has plenty of cash. “It’s not about profit and loss and liquidity to cope with this crisis,” — said the head of Uber. Tea said that the company has $10 billion in cash plus payments on long-term debt companies will only be written off in 2023.

the Company Lyft, which declined to comment on the fate of his business is also suffering from reduced trips according to the costs of consumer credit card analyzed by the Agency, Earnest Research.

Meanwhile, American Uber drivers and Lyft announced the decline of income, reduction of working time on the roads and the lack of alternative sources of income. The survey of nearly 200 drivers was held by the Rideshare Guy. Few of the drivers who participated in the survey said that Uber and Lyft doing enough to support them during their difficulties. The company said that they compensate simple for drivers unable to work as a result of infection with virus or involuntary quarantine.

Uber and Lyft announced that they are working on solving the problems faced by drivers. In Lyft said that the company is studying ways to create more “safe income opportunities” for drivers, such as shipping medical supplies or food.

Some drivers said they switched to delivery of food or considering it. The demand for these services has grown dramatically, due to the fact that millions of Americans remain at home, while restaurants in major cities forced to close their establishments. In application delivery, including from Uber added the ability to leave food at the front door to avoid human contact, according to customers and drivers, they appreciate it.

last week, shares of Uber in the course of trading, renewed its historical minimum and has lost more than 13.5%, below $23. However, this movement is not over, and postmarket securities of technology start-up decreased by 6.5%. According to experts, the company’s shares fell in a wave of sales and falling faster than the indexes because of the vulnerability of the company to coronavirus.

the Catalyst for this pressure became several factors: fear of personal contact with the driver, and General measures to ban mass gatherings, restriction of leisure time and some companies their employees to work remotely.