Uber shuts Mumbai office to cut cost; operations to continue

Ride hailing firm Uber has reportedly closed its office in Mumbai as part of a global move to consolidate operations, which would help it in reducing cost. The US-based company has decided to wind up as many as 45 offices around the world. The coronavirus pandemic-led countrywide lockdown has badly impacted its business globally, leading to consolidation of operations.

As per report, the company will continue to provide service to all its riders in Mumbai. The move will not impact employees and all work functions will go remote.

Recently, Uber CEO Dara Khosrowshahi had said the company would refocus on its core business, moving people and delivering food and groceries. The company has also said it will close 45 offices globally, and almost all departments will be affected by layoffs.

Also Read: Coronavirus lockdown impact: Uber lays off 600 employees in India

This development came nearly a month after the ride-hailing company announced a global downsizing move that affected around 6,700 employees worldwide. As many as 600 employees were fired in India across various segments, including customer and driver support, business development, legal, finance, policy, and marketing verticals. This was the company's third major layoffs since the start of the pandemic as Covid-19 hit its businesses.

In a similar trend, rival Ola also fired nearly 1,400 employees in May as its revenue took a hit amid coronavirus-induced lockdown.

Also Read: Coronavirus lockdown: Ola, Uber resume services for essential travel in Mumbai, Pune

In the first quarter of the current financial year (Q1 2020), Uber net loss widened to $2.9 billion from $1.1 billion loss reported in the same period last year, registering an increase of 163 per cent. The company's total revenue rose 14 per cent year-on-year to $3.54 billion.

Last month, Ola and Uber had resumed services in Mumbai despite the city being one of the most affected by COVID-19.

By Chitranjan Kumar