Delivery services Uber levered in light of the continuous decline in the number of fare customers


San Francisco: She confirmed Uber It entered the path of economic recovery thanks to the delivery service and the gradual lifting of the restrictions of the pandemic, however, supply and demand in taxi services are still at weak levels, while the platform continues to defend its controversial economic model.

The world leader in taxi services said on Wednesday that the number of trips via Uber returned to an increase in the first quarter, despite the fact that the total number of bookings decreased by 38% in this category within a year.

“We finally see a light at the end of the tunnel, with high vaccination rates, low infection rates, and the lifting of restrictions on movement,” the head of the US giant, Dara Khosrowshahi, said during a conference call with analysts.

The company’s delivery services achieved a significant increase during the 2020 closures, in parallel with the significant decline in taxi services.

This trend continued during the first quarter of this year, as the total number of trip reservations (revenue before taxes, toll fees and money paid to drivers) decreased by 38% within a year to $ 6.8 billion, while the percentage of deliveries increased by 166% to $ 12.5 billion.

The app includes about 98 million consumers who use the service at least once a month, compared to 103 million a year ago.

Drivers return to work

“Uber’s financial situation is moving in the right direction,” eMarketer analyst Eric Hagstrom said, adding, “Unlike + Lift + (its American competitor), Uber’s user base has almost returned to its pre-pandemic levels, thanks to good performance. To serve her to deliver food. ”

Uber announced bonuses for its US-contracted drivers a month ago, hoping to speed up their return to work.

In the end, the group reduced its usually hefty net losses to $ 108 million, thanks to the sale of its autonomous driving technology development and marketing unit, ATG, for $ 1.6 billion.

The company’s losses last year in the same period amounted to 2.9 billion dollars.

The group achieved revenues of $ 2.9 billion, and this number was strongly affected by the approval of “Uber” reserve allocations amounting to $ 600 million, an amount that the company must pay to its drivers in Britain to cover the expenses incurred by granting them the status of wage workers.

The issue of the legal definition of the drivers has not affected the financial prospects of the company, which has not yet made any profit.

And in the United States, Uber last year pushed back against a California law that would require gig economy companies (temporary jobs) to grant their contract drivers employee status.

“An opportunity for dialogue”

However, the Biden administration has shown support for drivers and delivery workers to obtain employee status. On Wednesday, the US Department of Labor repealed legislation adopted by the Donald Trump administration in early January that makes it more difficult to require temporary employees to obtain this status.

US Labor Secretary Marty Walsh said in a statement, “We remain determined that employees enjoy clear and fair recognition in their effective capacity as employees, and to enjoy the protection stipulated.”

Uber’s legal director, Tony West, saw an “opportunity for dialogue” with the government to “find a solution that gives workers the protection they deserve while preserving the innovation that provides them with the flexibility they seek.”

In 2020, Uber and other companies in the sector spent more than two hundred million dollars promoting an alternative to the law in California confirming the independent status of drivers while granting them some financial compensation.

This camp won 58% of the vote, and Tony West is now focusing on the necessity of adopting this model. He said, “There is no uniform size” for everyone, “but there are solutions to this problem that must be found in a way that suits every place.”



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