Uber, Lyft hit hard by pandemic

Ride-sharing companies Uber and Lyft reported major first quarter losses this week driven by the fallout from the coronavirus pandemic.

Both companies revealed that their ride-sharing business revenues fell drastically in March as countries and states worldwide began issuing stay-at-home orders.

Uber said Thursday that while first quarter revenue grew 14 percent compared to last year, losses jumped 190 percent.

The announcement of the losses comes a day after Uber laid off 3,700 employees in its customer support and recruiting teams.

Khosrowshahi has waived his base salary for the remainder of 2020.

Lyft’s first-quarter earnings did not reflect the damage done to the ride sharing industry as fully.

The company’s revenue rose 23 percent versus the same period in 2019, while losses were also narrower.

However, Lyft said in an earnings call Wednesday that rides dropped almost 80 percent in late March and are still down 70 percent in May.

If usage remains at similar levels, Lyft predicts second quarter losses could far outpace the first quarter.

“These are the hard truths we’re facing,” CEO Logan Green said Wednesday.