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COVID-19 has ravaged ride-hailing companies, but an industry watcher says the crisis could make Uber stronger (UBER)

  • While ride-hailing has suffered from the impact of COVID-19, Uber is in a good position to survive the crisis, three analysts who cover the company told Business Insider.
  • Uber is in no danger of running of out money anytime soon, said Mark Mahaney, a managing director at RBC Capital Markets.
  • And a series of cost-cutting moves should make the company profitable by next year, said Dan Ives, a managing director of equity research at Wedbush Securities.
  • Uber's food-delivery service, Uber Eats, gives the company an advantage over ride-hailing competitors, since it allows homebound consumers to keep using its app, said Tom White, a senior research analyst at DA Davidson.
  • Are you a current or former Uber employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@businessinsider.com. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at mmatousek@protonmail.com.
  • Visit Business Insider's homepage for more stories.

The ride-hailing industry has taken a major hit from COVID-19 as potential customers remain confined to their homes, but Uber is in a good position to survive the crisis, three analysts who cover the company said.

"Their business model will be intact on the other side of this," said Dan Ives, a managing director of equity research at Wedbush Securities.

A strong cash reserve will help. After ending the first quarter with $9 billion in cash and short-term investments, Uber has the resources to survive a scenario in which the prevalence of COVID-19 and its effect on consumer behavior last for the next two years, said Mark Mahaney, a managing director at RBC Capital Markets.

On Thursday, Uber disclosed its first-quarter financial results, reporting an adjusted loss of $2.9 billion on revenue of $3.5 billion during the first three months of this year. Uber CEO Dara Khosrowshahi said on a call with analysts that the ride-hailing company would cut $1 billion in fixed costs. The company has recently removed its food-delivery service — Uber Eats — from eight unprofitable markets, folded its electric bike and scooter business into Lime (Uber recently led a $170 million investment round in the company), and announced it will lay off about 14% of its workforce.

Those moves should help Uber become profitable in 2021 (the company predicted in February that it would turn a profit by the end of this year), Ives said. Uber's management, which had struggled in the wake of the company's 2019 IPO, has performed well in the current crisis by being transparent with investors and quickly moving to reduce expenses, Ives said. Investors signaled their approval of the company's strategy by sending shares up as much as 8% in after-hours trading on Thursday.

Uber Eats was one of the highlights of the company's first-quarter results, said Tom White, a senior research analyst at DA Davidson, as gross bookings grew 52% from the first quarter of 2019 to $4.7 billion. Eats gives Uber an advantage over ride-hailing competitors that don't have a similar service, as it allows the company to keep homebound consumers using its app, White said. Even after the toll of COVID-19 begins to subside, demand for online food delivery could see continued growth, he added.

But there are still challenges ahead for Uber. The company said rides fell by as much as 80% in April, and Ives projects that 30% of the customers for gig-economy companies like Uber, Airbnb, and Lyft won't use a ride-hailing service until there's a vaccine for COVID-19. Yet the pandemic could leave Uber better off in the long run, White said.

"I saw and heard enough [during Uber's first-quarter earnings call] that makes it harder and harder for me to think that these guys don't emerge from this pandemic probably in a stronger competitive position and a healthier and leaner operating position," he said.

Are you a current or former Uber employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@businessinsider.com. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at mmatousek@protonmail.com.

SEE ALSO: Elon Musk's theater of the absurd is a sign of the times for tech

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These 19 enterprise tech companies are still hiring during the coronavirus crisis — including AWS, Slack, Box, and Okta

  • Business Insider surveyed enterprise technology companies to determine who's still hiring amid the coronavirus pandemic.
  • Companies like Amazon Web Services, Slack, Okta, Box, and Zoom are actively hiring, while others like Microsoft, Google, and SAP have slowed hiring to prioritize recruiting in key areas.
  • Below is a list of 19 enterprise tech companies that are hiring, and the types of roles they are trying to fill.
  • Visit Business Insider's homepage for more stories.

As companies across industries slow or stop hiring amid the public health and economic crisis caused by the coronavirus, Business Insider surveyed enterprise technology companies to find out who is still hiring, and the types of roles they're trying to fill.

The results include companies actively hiring — such as Amazon Web Services, Slack, Okta, Box, and Zoom — while others like Microsoft, Google, and SAP have slowed hiring to prioritize recruiting in key areas.

Responses come directly from companies, but be aware that hiring alone may not paint a complete picture of what's going on at each one. VMware, for example, told Business Insider that it's hiring, particularly in a few key areas related to its cloud business — but also told employees in an internal memo that it was freezing all salaries.

Oracle, Nvidia, and Palo Alto Networks declined to comment on whether they are still hiring. Workday, Adobe, IBM, Cisco, Stripe, Qualcomm and HP did not reply to requests for more information.

Here are 19 enterprise companies still hiring in some form amid the pandemic, and what they're looking for:

Amazon Web Services is actively hiring, with no hiring freezes in place, the company says. Amazon at large has more than 20,000 job postings in US corporate roles.

 

 

 



Slack is "actively hiring," in a range of positions including engineers, data scientists, designers and customer experience experts, a spokesperson told Business Insider.

The company has moved to a virtual hiring process – all interviews are conducted over video and onboarding happens remotely.

Slack has 213 open positions listed on its website at the time of this writing.



Box is "currently hiring," a spokesperson said, across roles in engineering, sales, marketing, customer success, finance, compliance, business operations, product and product design.

Box's website listed 76 open jobs at the time of this writing.

In additional to moving interviews online, the company has introduced new practices like virtual coffee chats with candidates and videos from employees to learn more about Box's culture. For new hires, the company has switched start dates to once per month and started a buddy system to help with onboarding.

 



Zoom is hiring across the US and internationally for positions including in sales, engineering, legal, and security.

"We did have an extremely ambitious hiring goal already for this year," Lynne Oldham, Zoom's chief people officer, recently told Business Insider. "So where we're seeing additional need is around the places that we touch the customer."

The company had 81 open positions listed on its website as of this writing.



DocuSign "has moved forward with its hiring as previously planned," a spokesperson said, and is hiring in roles across customer services, sales and business development, engineering and IT, marketing, finance, legal, and workplace teams.

The company is also continuing its internship program virtually and plans to bring on more than 100 interns this summer.

DocuSign had 338 positions listed on its careers website as of this writing.



Dell-owned VMware is still hiring, a spokesperson said, and has "hundreds of open roles across R&D, IT, sales, customer services and support, marketing, finance, HR, legal, and business administration."

But the company is also freezing salaries and suspending retirement matching, according to a memo obtained by Business Insider. A spokesperson confirmed that "there have been a number of cost management changes impacting the VMware workforce."

VMware interviews take place virtually.



Microsoft has frozen hiring for some roles, citing uncertainty related to the coronavirus crisis.

"We continue to seek industry-leading talent in a range of disciplines as we continue to invest in certain strategic areas," a Microsoft spokesperson told Business Insider last month. "However, in light of the uncertainties presented by COVID-19, we are temporarily pausing recruitment for other roles."

Microsoft declined to provide more information about for which positions it's still hiring, and which roles are seeing a pause in hiring.

Microsoft's subsidiaries include LinkedIn and GitHub.



German software giant SAP is still hiring in essential areas, but has pledged to reduce hiring and discretionary spending as "precautionary measures" during the pandemic.

The company "will continue to hire carefully selected people into roles that will rapidly contribute to our competitive edge,"a spokesperson said, which it said include in "essential areas" such as innovation, and research and development. 

SAP said its candidate selection has remained the same, but the interviews are conducted virtually. New hires are onboarded virtually and sent SAP-issued equipment to their private addresses so they don't have to go to the office.



Google is slowing down hiring for the remainder of the year, CEO Sundar Pichai told the company in an email seen by Business insider.

Pichai said the company is enacting a hiring freeze on all but a select few "strategic areas" for the remainder of 2020. He wrote in the email that the company needed to "carefully prioritize" recruiting employees to serve its "greatest user and business needs."



Dell Technologies is not "hiring broadly," but subsidiary companies like VMware and Secureworks still are, a Dell spokesperson told Business Insider.

Dell Technologies is still continuing its early-in-career programs and summer internships, although they've become remote. 

"We are constantly evolving our hiring strategy based on business needs," the spokesperson said.



Okta is still actively hiring, Okta's chief people officer Kristina Johnson confirmed to Business Insider.

"We're continuously evaluating what we need as a business during this time, listening to customers, and tailoring our hiring plans to meet those needs," Johnson said. "Okta is in a unique position during this uncertain time in that we had the right infrastructure in place from the get-go to make remote work and remote on-boarding fairly routine."

Okta's main hiring focus areas are in customer service, engineering, and sales, Johnson said. 



Dropbox has temporarily halted its recruiting efforts to figure out the process for onboarding people remotely.

"What we actually ended up doing was we took a pause to just take stock of our onboarding and our approach to onboarding because we wanted to make sure that we weren't bringing people on and that they actually weren't effectively able to onboard," Dropbox COO Olivia Nottebohm told Business Insider.

It's still hiring but has slowed down, only hiring for targeted roles, meaning it's up to managers to hire for key, business critical roles.

"We're trying to just be prudent and nd not get ahead of ourselves given the macro environment that we're in, but we are moving forward to hiring targeted roles," Nottebohm said.

While Dropbox plans to honor pending offers and ongoing interview processes, interviews for new applicants have been put on hold. The college internship program will also take place in the summer remotely.

"Fully remote recruiting and onboarding into a new company comes with unique challenges — bringing new hires into Dropbox takes a great deal of collaboration between many teams, including hiring managers, learning and development, IT, benefits, and recruiting," a Dropbox spokesperson told Business Insider.  

"In order to ensure we're onboarding new hires effectively and managing the strain on these teams during the shelter-in-place orders in effect across the globe, we've paused recruiting efforts temporarily," the spokesperson added.  



In April, ServiceNow promised not to lay off any of its 11,000 employees and also said it plans to keep hiring worldwide this year.

"With this new no layoffs pledge for its 11,000-plus global workforce, ServiceNow continues to take a leading role in how technology companies are responding to this health crisis by helping its own employees and customers get through these challenging and uncertain times," Shane Driggers, vice president of Global Talent Acquisition at ServiceNow, said in a statement to Business Insider.

The company expects to create and fill more than 1,000 new jobs in the US and more worldwide by the end of the year, Driggers says.

"We are leaning into hiring for engineering and sales roles as well as other functions across the business," Driggers said.



Splunk is still hiring for a number of positions across the organization, a spokesperson told Business Insider. Open roles include positions in engineering, sales, finance, accounting, and information technology.



Square is still hiring and focusing on roles like software engineering, data science, product design, sales, marketing, operations, and finance, a spokesperson told Business Insider.

"We are continuing to hire in the US and internationally, focusing on roles that we believe will be the most important to our customers and our business in the coming months," a Square spokesperson said. 

Currently, Square has over 100 open roles. 



Twilio is still hiring across the board and not slowing down, a company spokesperson told Business Insider. There are still open roles in engineering, services, sales, product, and more.



Intel has slowed down external hiring, a spokesperson said. "We have slowed external hiring, but we currently have approximately 1000 open positions that we are actively hiring for."

 

 



Atlassian is still hiring across the board, a spokesperson confirmed. This past March was its strongest month of hiring in its history, the company said, as it brought on about 200 new hires. At the end of March, Atlassian had 4,457 employees.



Zendesk is still hiring roles that are "key to our business," but "deprioritizing" the ones that are not as critical.

Zendesk is still hiring roles that are "key to our business," but "deprioritizing" the ones that are not as critical, a Zendesk spokesperson said.

"In response to the global COVID-19 pandemic, Zendesk has been focused on helping our employees, customers, and community at large navigate their immediate needs and plan for the future in this new world," the spokesperson told Business Insider.

The spokesperson said that Zendesk is continuously looking at how to manage its operations to become more efficient and productive, while minimizing disruption to customers. 

"This is standard for all businesses that are looking at their immediate and long-term strategies in order to position themselves for growth," the spokesperson said. "We believe in the strength of our business and our employees, and the resiliency of our customer base, and are in a good position to weather this crisis and emerge as a better, stronger company."






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