Uber Slows Down Due to COVID-19 Pandemic
Uber is struggling due to COVID19 – now it wants to cut costs by shifting its engineering to India. After laying-off, almost one-fourth of its staff in India (600 employees) in May, ride-hailing firm Uber has shut down its Mumbai office. A spokesperson for Uber declined to comment on the development but added that it will continue to provide “a high level of service to all its riders in Mumbai".Apart from cutbacks on jobs on jobs in India, Uber seems to be cutting down on property and related rental and lease expenses, as part of its global downsizing process. Uber’s India rival, Ola, also trimmed around 1,400 jobs in May after the coronavirus pandemic severely hit travel and mobility businesses.
Apart from ride-hailing firms, vehicle rental startups including Bounce, VOGO, Yulu, Zoomcar, and others have also faced a severe dip in ridership during the three-month lockdown. Uber's chief executive officer Dara Khosrowshahi said in a recent conference call that the firm has already planned expenditure cutbacks worth $1 billion due to business disruptions caused by COVID-19. Uber CEO Dara Khosrowshahi is eager to shift engineering innovation to India as it will be cheaper for the company, said a report by The Information. According to Uber Technologies Inc.’s filing with the Securities and Exchange Commission (SEC) in the US in early May, the company has committed to pay up to $145 million worldwide to employees in severance pay and other benefits such as insurance.
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