American ride-hailing company Uber recorded a loss of $2.9 billion in the first quarter of 2020, its biggest loss in three quarters.
The company also posted $3.54 billion in revenue. It also recorded a 3 percent fall in gross bookings, while bookings in its Uber Eats division were up more than 54 percent year over year, owing to increased demand for food deliveries.
Uber’s ride-hailing business experienced a slump as a result of widespread shutdown orders due to the pandemic. Just this week the company announced it will lay off 3,700 full-time employees, or about 14 percent of its workforce.
Reports also say that over 400 employees from Uber’s Jump bike and scooter division will also be laid off as part of an investment deal with Lime.
In March, Uber CEO Dara Khosrowshahi said the company’s gross bookings in most major cities were down by as much as 70 percent. Its overall business was reported to be down 80 percent year over year. Recent gains in its food delivery Uber Eats division have failed to make up for big losses in its core ride-hailing product.
