Korshahi noted that the company has $ 10 billion in cash and that in the next two years Uber should not start repaying its debt. He said that even in their pessimistic scenario, which includes an 80% reduction in revenues by the end of the year, the company will end the year with $ 4 billion at the box office. Most of Ober and Lift’s activities are based on taxi travel, an activity that is almost completely frozen in the current situation. The Uber noted that they experienced a 60% -70% drop in orders in some markets, such as Seattle. The Uber also announced yesterday the freeze of marketing campaigns aimed at recruiting new drivers. Lift announced it would stop recruiting drivers at all.
However, Uber is already seeing recovery in some markets, including Hong Kong. Another positive point is at Uber EATS, the company’s food delivery activity, which is performing well in light of the fact that restaurants are currently relying on deliveries. Uber is also looking at deliveries in other areas, with the help of its taxi drivers. The Israeli company Gett also announced today that it is expanding its shipping service, and taxi drivers will now be able to make deliveries.
“The most important thing is that we are well-positioned to weather this crisis and even get out of it,” Kossarshahi said in an analyst call. “We have liquidity, a variable spending structure, a global foothold and some business activities that provide us with diversity and case studies on how quickly our businesses can recover.”