The company also said there were some signs that its rides business was improving internationally. In France, business had recovered about 70 percent, it said, while rides to work and to social gatherings in places such as Hong Kong, New Zealand and Sweden were higher than they had been before the pandemic.
But in the United States, which is one of Uber’s largest markets, rides were down 50 percent to 85 percent in many major cities.
Uber also faces legal challenges in California and Massachusetts, where the state attorneys general have sued Uber and Lyft for violating labor law. Drivers in both states should be classified as employees, not independent contractors, and be entitled to full employment benefits, the states have said.
If the lawsuits are successful, they could diminish Uber’s business because it would make it more expensive to operate, analysts said.
“It will be hard to argue that Uber and Lyft are the future of transportation,” said Tom White, an analyst for D.A. Davidson. “These guys will look a lot more like tech-centric, tech-smart taxi operators.”
Most drivers prefer to remain independent contractors, Mr. Khosrowshahi said. “We are confident in our position,” he said.
Article source: https://www.nytimes.com/2020/08/06/technology/uber-ride-hailing-delivery-coronavirus.html