Uber, Lyft Cut Costs as Fewer People Take Rides Amid Coronavirus Pandemic

Uber Technologies, Inc said on Wednesday that it will be cutting around 14% of its workforce and Lyft Inc, after already cutting 17% of its workforce, will be cutting costs also. Uber and Lyft are facing the reality of fewer passengers for the foreseeable future. The Chief Executive of Lyft, Logan Green, said that "even as shelter-in-place orders and travel restrictions are modified or lifted, we anticipate that continued social distancing, altered consumer behavior and expected corporate cost cutting will be significant headwinds for Lyft."

This is very interesting because Uber and Lyft grew into a very prominent start-up company focusing on affordable travel services. Their success with meeting consumer demand so quickly and effectively was astounding. This is a great example of the product life cycle. Uber and Lyft as products were very desirable, efficient, and met consumer needs, but when needs change products must change with them. Unfortunately, Uber and Lyft's services require social encountering and may suffer until consumers become comfortable not social distancing anymore.

Article by: Tim Higgins and Parmy Olson