Apr 16, 2020 - Economy & Business

Uber pulls 2020 financial forecasts

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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Ride-hailing and delivery services suspended in some cities during curfews

Photo: Justin Sullivan/Getty Images

Ride-hailing and delivery companies Uber, Lyft, DoorDash, and Postmates suspended service in some cities at the request of local officials during this weekend's curfews amid protests over the death of George Floyd and other police-related killings of black people.

Why it matters: Curfews are stricter than shelter-in-place orders, which remain effective in several cities, and could be enforced more rigorously.

Updates: George Floyd protests continue past curfews

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued Tuesday across the U.S. for the eighth consecutive day, prompting a federal response from the National Guard, Immigration and Customs Enforcement and Customs and Border Protection.

The latest: Even with early curfews in New York City and Washington, D.C., protesters are still out en masse. Some protesters in D.C. said they were galvanized by President Trump's photo op in front of St. John's Church on Monday and threat to deploy U.S. troops in the rest of country if violence isn't quelled, NBC News reports.

Updated 1 hour ago - Politics & Policy

Trump backs off push to federalize forces against riots

Photo: Brendan Smialowski /AFP via Getty Images

A day after threatening to federalize forces to snuff out riots across the country, the president appears to be backing off the idea of invoking the Insurrection Act, sources familiar with his plans tell Axios.

What we're hearing: Aides say he hasn’t ruled out its use at some point, but that he's “pleased” with the way protests were handled last night (apart from in New York City, as he indicated on Twitter today) — and that for now he's satisfied with leaving the crackdown to states through local law enforcement and the National Guard.