Given the evolving nature of COVID-19 and the uncertainty it has caused, Uber withdrawed its 2020 guidance for Gross Bookings, Adjusted Net Revenue, and Adjusted EBITDA, which were provided on February 6, 2020.
The company also said it would write down about $2 billion in investments.
"Given that much of the world is currently on some form of coronavirus lockdown, we expect to record an impairment charge against the carrying value of some of our minority equity investments. We believe these investments will be reduced by an estimated range of $1.9 to $2.2 billion during the three months ended March 31, 2020, due to the impact of the pandemic on the estimated value of these entities," Uber said.
Uber holds shares in various ride-hailing and food delivery businesses around the world. The company valued holdings in China’s Didi Chuxing and Southeast Asia’s Grab at a combined $10.3 billion at the end of last year.
A financial assistance program created by the company for drivers and delivery people coping with the effects of the virus will have a marginal impact on revenue. The result will be a $17 million to $22 million reduction in that quarter and $60 million to $80 million in the second quarter, Uber said.
Although Uber rides have fallen by as much as 70% in some of the hardest-hit cities, the company could offset some of that shortfall with food delivery, which is experiencing a surge in demand as people stay at home.
Uber is scheduled to release its quarterly report on May 7.