Uber Says it Has Enough Cash Reserves to Withstand the Coronavirus Crisis
Uber Technologies Inc. hosted a conference call with analysts on Thursday, March 19, saying that it would have billions of dollars in cash at the end of the year.
The company said that it expects to have $6 billion in cash on hand, along with with a $2 billion debt revolver, at the end of the year. In the worst cast scenario, with the new coronavirus causing a more extreme slow-down in the ride-hailing business, the company would have only $4 billion in cash reserves plus the revolver, Uber Chief Executive Officer Dara Khosrowshahi said.
The pandemic is keeping people in their homes as they attempt to slow the spread of the virus, devastating the ride-hailing business.
Uber and Lyft were hit hard by a drop in riders as the virus spread across the world. Both the companies have started suspending shared rides on their platforms in the United States and Canada.
Khosrowshahi said that Hong Kong, which experienced the coronavirus ahead of the U.S. and Europe, saw trips fall 45% and that the city is now 30% off of its peak.