Coronavirus: Uber Business Taking Hit, Has Enough Funds

In a call to investors, Uber CEO Dara Khosrowshahi has said the company is losing significant business because of the coronavirus, but has enough funds on hand.

According to Business Insider, Khosrowshahi told investors the hardest hit areas have seen a 60-70% decline in rides, and that could go as high as 80% for the year. In spite of that, the CEO said the company has $10 billion in unrestricted cash.

“We have plenty of liquidity on the books which positions us to come out of this crisis strong and capable,” Khosrowshahi said.

Another bright spot is Uber Eats, the company’s food delivery service. As people forgo restaurants, Uber Eats is seeing growth in even the worst hit areas. Between the news that Uber has enough cash to survive the crisis, and news its food delivery service is growing, the company’s stock was up as much as 43% Thursday.

Uber should serve as an example for other companies. Between having enough cash to weather a storm, and diversifying into a disruptive business, the company seems well-positioned to survive any temporary hit to its core business.