Uber signals recovery in rides as lockdown restrictions ease

Uber Technologies Inc said on Wednesday trip requests were gradually picking up, but still remained significantly below prior year levels, as several countries start to lift coronavirus-led restrictions.

Trip requests are now down about 70 per cent from a year earlier, slightly lesser than April’s 80 per cent drop, Chief Executive Officer, Dara Khosrowshahi, said in a conference with Bank of America analysts.

He said the company’s rides business is improving on a week-over-week basis.

He added that the surge in food-delivery orders at Uber Eats recorded in the first quarter, showed no signs of slowing in May, easing concerns of investors who thought it could be a one-off trend during the pandemic.

Ridership in Hong Kong, which has been one of the most successful cities in the world at containing the novel coronavirus outbreak, has recovered more than 80 per cent from its coronavirus-driven lows, Khosrowshahi said.

Rival Lyft Inc also signalled a rebound in ridership on Tuesday, saying rides on its platform rose 26 per cent in May from the previous month.