Uber shares hit an all-time low as worldwide commuter levels drop following Coronavirus outbreak
- Mar 14, 2020
- 1 min read
Uber Technologies Inc. have seen stock market shares drop to an all-time low as the Coronavirus outbreak takes its toll on the ride-sharing economy.
Uber shares closed the markets on 13 March at $22.60, following the advised protocol by some global governments for workers to remain at home to complete tasks rather than commute to work.
Ride-sharing firms such as Uber and its biggest rivals like Indian born Ola, rely heavily on home-to-work and vice versa based jobs, as well as those travelling around busy cities to get to and from office meetings.
In the world of transportation, if no one is moving, no one is earning; leaving not only investors biting their nails, but also the drivers themselves who are now scratching around trying to earn enough money to pay the bills.
As self-employed workers, drivers for ride-sharing firms have no guaranteed earnings, with no sick pay entitlements or holiday pay. If a driver falls ill with Coronavirus, there's no certainty that they will receive help from governments around the world.
The same goes for traditional taxi drivers, who in most cases globally, are self-employed.
Uber announced earlier in the week that it will offer sick-pay to drivers who fall victim to Coronavirus and are forced into isolation, but the finer details of the agreement are not yet clear.
As for share prices plummeting even more, the company warned that if things get worse, it could post a "material risk to its business“, the Economic Times first reported.
Image: TaxiPoint
