Uber shuts down Mumbai office permanently as part of global cost cuts

Stock Market

After laying-off nearly one-fourth of its employees in India (600 staff) in May, ride-hailing agency Uber has shut down its Mumbai office, mentioned an individual conscious of the event asking to not be named.

Uber’s Mumbai staff will proceed to earn a living from home till December, the individual mentioned. It shouldn’t be clear if the workers shall be moved to a different office in Mumbai subsequent yr.

A spokesperson for Uber declined to touch upon the event however added that it’ll proceed to offer “a excessive stage of service to all its riders in Mumbai”.

Uber’s Mumbai office closure comes nearly a month after the ride-hailing agency introduced a global downsizing train that affected round 6,700 staff worldwide. The India layoffs affected 600 staff throughout segments, together with buyer and driver assist, enterprise growth, authorized, finance, coverage, and advertising verticals.

Apart from cutbacks on jobs on jobs in India, Uber appears to be chopping down on property and associated rental and lease bills, as part of its global downsizing course of.

Uber’s chief government officer Dara Khosrowshahi mentioned in a latest convention name that the agency has already deliberate expenditure cutbacks price $1 billion because of enterprise disruptions attributable to covid-19.

According to Uber Technologies Inc.’s submitting with the Securities and Exchange Commission (SEC) within the US in early May, the corporate has dedicated to pay as much as $145 million worldwide to staff in severance pay and different advantages such as insurance coverage.

This yr, Uber India additionally bought its meals supply enterprise to Zomato. The deal additionally included UberEats choosing up a 10% stake in Zomato. Apart from India, Uber additionally exited no less than eight meals supply markets prior to now few quarters as the corporate seems to show worthwhile by finish of FY21, in response to its SEC filings.

In the primary quarter of the present monetary yr (Q1 2020), Uber’s total income rose 14% year-on-year to $3.54 billion. The firm’s web loss widened to $2.9 billion within the reporting quarter, a 163% enhance from the $1.1 billion loss reported within the first quarter of 2019.

Uber’s India rival, Ola, additionally trimmed round 1,400 jobs in May after the coronavirus pandemic severely hit journey and mobility companies. Apart from ride-hailing corporations, automobile rental startups together with Bounce, VOGO, Yulu, Zoomcar, and others have additionally confronted a extreme dip in ridership throughout the three-month lockdown.

Even as each Ola and Uber and concrete mobility startups opened up their providers in a staggered method in May, most mobility corporations are but to return to the extent of demand they’d earlier than the lockdown was launched in March.

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