Uber Records Highest Ever Number of Bookings in March... Demand Surges Amid Widespread Vaccine Rollout

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The U.S. ride-hailing service company Uber recorded its highest monthly number of bookings ever in March. This surge in demand is attributed to the increase in COVID-19 vaccinations.

According to the Wall Street Journal (WSJ) on the 12th (local time), Uber announced that its booking record in March was the highest monthly figure since the company's founding in 2009.

Ride-sharing service competitor Lyft also announced that its March bookings have recovered to pre-COVID-19 pandemic levels.

However, WSJ reported that during the COVID-19 pandemic, the demand for ride-hailing services plummeted, causing drivers to switch to other industries such as grocery delivery, making it difficult to meet the current rising demand for ride-hailing services.

To secure more drivers, Uber plans to pay bonuses worth $250 million (approximately 281.2 billion KRW).

Due to this strong business performance, Uber expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in the first quarter.

Previously, Uber disclosed a net loss of $6.76 billion (approximately 7.48 trillion KRW) last year.

After the COVID-19 crisis severely impacted its ride-hailing business, Uber implemented cost-cutting measures such as laying off one-quarter of its employees, reducing fixed costs by $1 billion (approximately 1.125 trillion KRW) last year.