CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.40% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

Uber and Lyft fare revenue plunges more than 50 per cent

15:35, 3 April 2020

Share this article

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe

Ride-hailing apps Uber (UBER) and Lyft (LYFT) have both seen their revenue from fares drop by more than 50 per cent. This is a result of the ongoing Covid-19 pandemic, according to The Information Sources.

It is thought that the impact of the widespread lockdowns imposed across much of the world to arrest the spread of the novel coronavirus has been lighter on Uber than on its close rival. This is because the firm has been paying drivers a lower share of passenger fares than it did 12 months ago. 

Nonetheless, Uber’s revenue from passenger rides, after the payment of drivers, is expected to slump to $450m (£366m, €417m) in the first quarter of 2020 from $800m in the fourth quarter of 2019.

Trade Uber Technologies Inc - UBER CFD

1m
5m
15m
30m
1H
4H
1D
1W

Uber’s diversification into food deliveries has helped it cope with the 70 per cent fall in demand it has witnessed in certain key markets. Nonetheless, the company’s share price has still suffered amid the market-wide coronavirus sell-off, plunging from its 2020 peak of $41.27 in February to a low of $14.82 in mid-March. 

NVDA

131.86 Price
+4.630% 1D Chg, %
Long position overnight fee -0.0064%
Short position overnight fee -0.0059%
Overnight fee time 21:00 (UTC)
Spread 0.67

AMZN

120.92 Price
+4.120% 1D Chg, %
Long position overnight fee -0.0064%
Short position overnight fee -0.0059%
Overnight fee time 21:00 (UTC)
Spread 0.24

TSLA

248.65 Price
+1.950% 1D Chg, %
Long position overnight fee -0.0308%
Short position overnight fee -0.0137%
Overnight fee time 21:00 (UTC)
Spread 0.70

AMC

7.88 Price
+11.030% 1D Chg, %
Long position overnight fee -0.0308%
Short position overnight fee -0.0137%
Overnight fee time 21:00 (UTC)
Spread 0.29

The firm’s stock has recovered slightly, to stand at $23.70 in mid-afternoon Friday trading (GMT), after CEO Dara Khosrowshahi told analysts that Uber will have $4bn in cash at the end of 2020. Nonetheless pressures remain. 

Indeed, a sign of such pressure can be found in co-founder Garret Camp’s decision to step down as Uber’s director to become a board observer. Camp stated: “I will continue to work with Dara and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale.”

Speaking to CNBC on Thursday, billionaire short-seller Jim Chanos outlined his scepticism in the likes of Uber and Lyft, stating: “the labour pool issue for the gig economy companies is going to loom very very large coming out of this crisis.”

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 450.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading