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How COVID-19 impacts ride-sharing business

Because of the rapidly spreading novel coronavirus, several countries have to let their citizens stay at home. Lyft has lost nearly two-thirds of its market value. Uber shares are down by half. The damage to Uber has been less because the company also has a food-delivery service. It became am important offset to its core ride-sharing business. The government requiring residents to stay home and allow restaurants to stay open for takeout and delivery. It makes Uber Eats estimate to have the second-largest share of the U.S. food delivery market right after DoorDash. On the other hand, Uber Eats is also Uber’s greatest source of losses. Although the demand for food delivery service increases will not change the profitability picture. The company announced that it has waived its delivery fee for independent restaurants during the current health crisis. The hit in markets will likely be worse since residents are forced to stay at home. 

Mengmeng Wei

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