Leturature rewiev

Problem Statement

Ridematching programs started relocating to the Web within the late 1990s.[17] A 2006 report by the Government Travel Organization of the Joined together States Office of Transportation expressed that "another day" responsiveness has been accomplished but that "energetic" ridematching has not however been effectively implemented.[18] In 2009, Uber was established as Ubercab by Garrett Camp, a computer software engineer and the co-founder of StumbleUpon, and Travis Kalanick, who sold his Ruddy Swoosh startup for $19 million in 2007.[19] In 2011, Sidecar propelled; its author Sunil Paul protected the thought of hailing a ride through portable app in 2002.[20] Lyft was propelled within the summer of 2012 by computer software engineers Logan Green and John Zimmer as a benefit of Zimride, an intercollegiate carpooling company they established in 2007.[21] Careem began operations in July 2012.[22] In 2013, California got to be the primary state to direct such companies; they are controlled as open utilities by the California Open Utilities Commission.

The spread of the coronavirus turned out to be such an unusually rapid phenomenon that many countries and their economies were so unprepared for such a turn of events. Although the passenger transportation industry is not the most important and critical sector of the economy, it has greatly influenced the daily life of ordinary citizens of the country, greatly restricting movement within the boundaries of large cities. The Coronavirus pandemic has hit many sectors of the economy of all countries hard. One of these industries turned out to be the transportation of passengers in the person of Uber or Lift.

When COVID-19 first began, people who were panicky began to fear being infected, this is not without reason, since the virus could remain on the surface for about three days. And using the services of an Uber or Lift posed a great risk both for passengers and for the drivers themselves. The management of these companies did not immediately take measures to combat this and they had to temporarily stop providing their services. "Ride-hailing rivals Uber Technologies Inc. and Lyft Inc. suspended shared-ride services Tuesday as COVID-19 spreads across the world, and their stocks dipped despite a rebound for the markets overall (Owens, 2020).

As mentioned above, many areas have suffered losses due to the pandemic. Uber did not stand aside. “Uber lost $1.1 billion over the last three months, with its adjusted net revenues down 20 percent compared to the third quarter of 2019”. (Hawkins, 2020)

Many people lost their jobs during the pandemics, although they could have gone and worked for an Uber or Lyft to pay their bills, but this option has also become unavailable due to COVID-19. And the drivers themselves could not earn as before to pay their mortgages and loans. All since the demand for their services fell and the state introduced strict restrictions on taxi policy. People did not want to risk their health and the health of their loved ones. Also, many drivers borrowed their cars to work on Uber, and they found themselves in difficult situations. The car is idle and does not make a profit and loses in price, but the loan must be paid for. Since the WHO introduced new recommendations and urged people to stay at home and close businesses, many drivers watched their incomes fall, since before the pandemic, about 1.3 million people used taxi services in the world. In a poll conducted by RIDE Share guy who focuses on drivers, it was said that about 80% of Uber drivers reported that their income was reduced due to the pandemic.

"COVID-19 has also impacted the sales of ride-sharing companies... "Over the past few months, Uber and Lyft have seen their ride businesses plummet, primarily due to the coronavirus pandemic. So, it doesn't seem like that's changing, based on the third-quarter earnings of the companies. However, stock prices have seen only small declines, ranging from 2 percent to 5 percent declines, with Uber and Lyft retaining a positive tone and expecting profitability in the not-so-distant future.

Research Question: What impact has Covid had on the ride share industry and how can the industry adapt to continue to provide the service to customers?

References

Owens J., (2020). Uber and Lyft suspend shared rides due to COVID-19; stocks decline despite market rebound. Retrieved from https://www.marketwatch.com/story/uber-and-lyft-suspend-shared-rides-due-to-covid-19-stocks-decline-despite-rebound-2020-03-17.

This Uber driver made $600 a week before the coronavirus outbreak — now he makes $0. Retrieved from https://www.cnbc.com/2020/03/28/uber-drivers-struggle-to-find-income-amid-coronavirus-pandemic.html \