Uber has been hit especially hard by the coronavirus pandemic, with rides down as much as 70 percent in places like Seattle. The company has reportedly been looking into other avenues to make money, including the potential delivery of medical supplies, according to a report.
In a call with investors on Thursday (March 19), CEO Dara Khosrowshahi had said the company is “well-positioned” to make it through the crisis, even if ridership drops by a crisis level of 80 percent.
Khosrowshahi said the company has been in contact with healthcare companies to see if it could help with delivery. “We already have contact in the health sector; we’ve got all of the processes that we need,” he said, referring to Uber Health.
The company has “ample liquidity,” he said, with $10 billion in unrestricted cash to use through February and $1.5 billion earmarked for mergers and acquisitions through the year.
Uber said that even if ridership does drop to that precipitous 80 percent level, the company still has $4 billion of unrestricted capital in the bank and a $2 billion credit line.
If the second quarter is the bottom, the company will have $6 billion in cash on hand and a $2 billion revolving credit line.
“The most important thing to know is that we’re well-positioned to weather this crisis and emerge even stronger,” he said on the call. “We have ample liquidity. We have a highly variable cost structure, a global footprint, multiple business lines that give us some diversity and case studies for how quickly our businesses (are) likely to rebound after a shock like this. All of this gives us confidence … as soon as businesses start moving, Uber will, too.”
The company also has its Uber Eats division, which has seen an uptick in business since the crisis, and has waived delivery fees for local restaurants that remain open.