This coronavirus pandemic is affecting all types of businesses and share ride giant Uber is the latest to make cuts.
According to AP, Uber said yesterday (May 6th) that it’s cutting 3,700 full-time workers, which is about 14 percent of its workforce. It is the latest layoffs affecting “sharing economy” companies, which have been hurt by the coronavirus pandemic because they depend on people sharing their personal space.
Uber’s main competitor, Lyft, and home-sharing company Airbnb have also announced job cuts. Lyft has said its rides in April were down 75 percent compared to last year. The pandemic may also affect the future prospects of these companies, even as the pandemic eventually fades, with people perhaps being less likely to rather use ride-sharing than own a car, something Uber and Lyft had been banking on. Similarly, people may decide they feel safer staying in a hotel than in someone’s home.
Do you feel safe taking an uber or lyft these days?
For more details on the cuts, click here.