Why Uber Stock Fell 17.6% in March
Uber (NYSE: UBER) shares fell 16.7% in March as the coronavirus outbreak caused people around the world to reduce the number of trips they make. The company relies on physical services to generate revenue, and many such businesses are seeing dramatic drops in transactions. Ridesharing has been no different, seeing the destruction of demand for its services.
Image source: Getty Images.
On March 19, Uber CEO Dara Khosrowshai said that "the rides segment is seeing 60% to 70% declines in areas hit hardest by [the] coronavirus pandemic." One thing the company has going for it is that the rides segment's expenses are mostly variable, able to adjust with decreases in revenue. However, it appears certain the company will continue losing money throughout the crisis.
Source Fool.com
