Ride-hail industry severely hit by coronavirus crisis; recovery might take years

While Hong Kong and New Zealand have reportedly exceeded their pre-pandemic ridership, the volume in the US is still suffering.The analysts have opine
...
FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California. (REUTERS)
FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California.

As the number of coronavirus cases worldwide continue to surge, the restrictions imposed due to the virus has taken a severe hit on the ride-hail industry.

The Washington Post quoted Uber chief executive Dara Khosrowshahi as saying that the ride-hail industry is experiencing "a tale of 10,000 cities."

The analysts have opined that the ride-hail industry may take months or even years to start to recover. However, the companies are already witnessing ridership difference according to the cities which are reopening, recovering, or re-imposing restrictions.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

While Hong Kong and New Zealand have reportedly exceeded their pre-pandemic ridership, the ridership in the US is still suffering. The Washington Post reported that the gross bookings on Uber rides were down 75 per cent in the three months through June.

Also Read : Russian court bans ride-hailing service Wheely in Moscow for three months

Though Uber did not reveal the city-by-city breakdowns during its latest financial earnings, it has been reported that the ridership in West Coast cities like San Francisco and Los Angeles has suffered the most amid the Covid-19 pandemic. However, New York, which was the epicentre of the virus outbreak in the US, has seen a recovery in the ridership.

"When travel restrictions lift, we know that mobility trips rebound," Khosrowshahi said.

With the gradual lifting of the Covid-19 restrictions, there has been a steady improvement in the ridership. Citing Uber's May update, The Washington Post reported that cities like Georgia and Texas saw 43 percent and 50 percent week-on-week growth, respectively, as they eased their restrictions.

Besides, only a handful of drivers provided service amid the Covid-19 pandemic leading to long wait times and higher fares. The drivers, who had reportedly preferred to stay at home in fear of getting exposed to coronavirus infection, remain unsure of whether to be back on streets after the crisis ends.

Also Read : Uber buys taxi-software company Autocab to fill UK market gaps

"The question is how long until we get a vaccination?" Ben Black, a consumer Internet research analyst at the firm Evercore ISI, was quoted as saying. "Before you have a vaccination, things aren't going to be back to normal."

To prevent the spread of coronavirus infections the ride-hail services have listed their own protocols that need to be followed by both drivers and passengers.

The Washington Post reported that in May the ride-hail companies had announced several policies requiring drivers and passengers to wear masks, ensure cleanliness and reduce crowding on their rides. The drivers were required to clean their cars regularly, have the front passenger seats off-limits to encourage social distancing, and pool rides were to be suspended amid the pandemic.

While the Uber executives are hoping that the recovery will happen with the loosening of Covid-19 restrictions, Khosrowshahi has said the company has not identified any larger patterns from the pandemic that would permanently change the business.

The Washington Post reported that Uber is banking on its food delivery business for now.

First Published Date: 11 Aug 2020, 13:06 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.