Uber grew rapidly popular because it solved a problem and did it well–providing convenient and reliable transportation at relatively low cost. Dispide this growth, the downfall of the unicorn has been the other of the day for the pass months from one Stroke to another. from cuting driver compensation in Los Angeles from 80 cents a mile to 60 cents.
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Amidst the already counted losses for Uber is the resent spinal break as the company’s chief technology officer Thuan Pham resigned as the company considers cost cuts in response to a collapse in demand for booking its car services . it should be noted that Mr. Pham was Uber’s longest serving member of the executive team. He joined in 2013 before the company went public under the then chief executive officer Travis Kalanick who was ousted in 2017. His departure comes as the company is reportedly considering laying off up to 20% of its 27000 employees in an effort to stem losses.
A company’s spokesman had given a statement saying that the company is looking at every scenario to ensure they get to the side of the pandemic in a stronger position than ever. News of Phans resignation as well as the potential lay offs was first reported by “the information” . Uber confirmed Mr Phams departure in a regulatory filing on Tuesday.
Uber has suffered a rapid decline in business as people around the world take fewer trips because of the COVID 19 pandemic, losses that have not been sufficiently offset by Uber’s other business access such as its food delivery. In the US, in regions affected early on such as Seattle, bookings for cars were down as much as 70% by mid March, a number likely to be significantly higher across the board in April as government imposed lockdowns have hold nation wide.
Pre-virus, Uber told investors that it is expected to record one profitable quarter by the end before adjusting for interest, taxes, depreciation and amortization. It has soon withdrawn that guidance. Uber’s quarterly earnings are due to be announced. The resignation of its best chief is a last stroke on the company’s back. Will the incumbent bear the weight of the falling building? The world is watching.
