Apr 16, 2020 - Economy

Uber pulls 2020 financial forecasts

An illustration of an Uber self-driving car with a boot

Illustration: Lazaro Gamio/Axios

Uber said on Thursday that it's withdrawing its forecasts for certain revenue and earnings metrics for the year, and it will write down between $1.9 billion and $2.2 billion from the value of equity investments. Its investments include ride-hailing companies Grab and Didi and food delivery company Zomato.

Why it matters: While Uber is seeing a surge in its food delivery business, demand for rides has dramatically dropped — by as much as 60–70% in Seattle at the peak of its outbreak — as people stay home to curb the virus spread.

  • Uber also says that its COVID-19 sick paid leave for drivers will reduce GAAP revenue by an estimated $17 million to $22 million in Q1, and an estimated $60 million to $80 million in Q2.
  • Food delivery company GrubHub also withdrew its guidance for 2020 this week, citing effects of the coronavirus pandemic and adding to the list of companies doing so.
  • Uber's share price went up more than 5% in after-hours trading.
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