COVID-19 Adding to Uber & WeWork’s Woes

In the rise tech companies such as Uber and WeWork have been making a buzz lately, but not for a quite good reason. What was meant to be a good and promising year for tech companies which are listed on the stock market has only led to so much despair, with tons of well-known names who lost half of their stock value in just a few months.

Uber’s value has fallen

The American multinational technology company Uber has made a huge impact and is considered as one of the greatest technology companies of the future, with more than $100 billion IPO valuation all in all. However, despite all these, the perceived future of this company today does not look as bright as it was before. As of October 2019, Uber’s value has fallen 35% and it continues to fall. And as of now, Uber’s chances of profitability has fallen even more, and has reached its vulnerability stage because of the emergence of the pandemic COVID-19 coronavirus.

As a result, Uber is making an effort to address the situation by suspending the accounts of the drivers and passengers who are found to be positive of the virus or have been in contact with a COVID-19 positive patient. Disinfectants are also provided to their drivers in order to assure that the vehicles are kept clean. However, despite all these efforts, their shares have been continuously fluctuating.

WeWork on the verge of declining

WeWork is an American real estate company that caters to people who are looking for shared workspace and for other enterprises. The co-working company is revolutionizing how the people and companies work–from freelancers, to teams, and even to solo entrepreneurs. However, just recently the co-working company has reported a sharp loss of over $1.25 billion as it expanded rapidly across the globe. WeWork has planned to undergo a massive shift from providing a co-working space to entering into education, living spaces, and even gaming. The rapid expansion of the co-working company cased major losses, which results numerous investors to grow nervous about the company’s financial security and future.

As of today, WeWork is on their cos-cutting phase with an account of over 1,000 layoffs. According to the Financial Times, the co-working company WeWork CEO Sandeep Mathrani is bound to cut the firm’s expenditures through laying-off 1,000 of its staff members–from its 2,400 staff layoffs in November 2019. In addition to the reported loss of over 3,400 human resources, the co-working company was reported a total loss of $8 billion.

Another dilemma faced by the co-working company is the outbreak of the COVID-19 coronavirus epidemic wrapped around the company’s neck, as its very business premise–co-working space from the office–sits at the odds with the growing need to stay and work from home, and the lockdown of some areas around the world due to the pandemic.

What’s next for these tech companies?

The future for Uber seems hopeful–with its many service offerings such as UberEats, motorcycle services, and other services that caters to a wide segment of the market. These integration could build its revenue and trust back on the track. But as for WeWork, things look bleak and rebuilding its brand tattered image should be fixed first.