Quratulain Y Azher
Karachi, May 06, 2020: The management of the world’s biggest App-based taxi service, Uber, has announced to fire 3,700 employees and permanently close 180 driver service centers as part of the of cost-cutting measures in the wake of coronavirus pandemic that suspended its services in different operating countries.
The reductions will affect 14 percent of staff around the world, mainly those in support and recruiting, Dara Khosrowshahi, the chief executive officer, wrote in an email to employees Wednesday. Ridership is down significantly, and the company is maintaining a freeze on hiring, Khosrowshahi wrote in the email, which was reviewed by Bloomberg.
Of the more than 450 driver centers Uber operates worldwide, 40% will shut down. The locations, called Greenlight Hubs, are used to sign people up to drive for Uber, teach them how to use the app, and address issues that arise on the job.
Recently its subsidiary Careem also announced to axe over 500 employees in its operating markets citing the suspension of services in different countries. It also annulled its plan to launch Careem Bus service due to lack of feasibility in the prevailing circumstance that also requires a huge investment.
Read More: Careem fires over 500 Employees
Careem and Uber have been operating in Pakistan for nearly four years with handsome investment from its investors that was followed by investments of hundreds of individuals through various models of vehicle.
Besides its core staff members, these companies generated thousands of jobs for drivers who made reasonable income from the services. However, the current lockdown in tandem with Covid-19 outbreak cost the jobs of hundred thousand of captains who have been unable to earn their livelihood these days.
Thousands of people making passive income from these services through utilizing their cars have also deprived of the monthly income.
