Uber Technologies (NYSE:UBER) stock wrapped up March more than 6.0% lower for the year. The stock fell by about 18% in March. Overall, the month was rough for US stocks amid the coronavirus-led sell-off. Lyft (NASDAQ:LYFT) stock fell by about 30% in March.
Uber and Lyft are the leading ride-hailing companies in the US. According to Second Measures estimates, Uber controls 69% of the ride-hailing market in the US. Meanwhile, Lyft has a 30% share of the market. Uber also focuses on its online food delivery business. Uber Eats ranks third in the US food delivery space with a 20% market share. DoorDash, which bought Square’s (NYSE:SQ) food delivery business Caviar last year, tops the chart with a 39% market share. GrubHub (NYSE:GRUB) is second with a 30% market share.
The COVID-19 crisis has hit Uber’s rides business. The demand has fallen by as much as 70% in certain markets. Notably, the fall put pressure on Uber stock.
However, Uber’s food delivery unit is seeing a boom. The demand for online food ordering and delivery has increased. People have to observe social distancing due to the COVID-19 outbreak.
The rides business is Uber’s largest and only profitable operation. Weakness in the rides market could have a negative impact on the company’s overall performance. Uber aimed to turn its first profit this year.
Uber stock fell, Camp switches gears
The decline in Uber stock was a wakeup call for Garrett Camp—one of the company’s co-founders. Camp decided to step back from his role as Uber’s director without actually exit the board. Camp will become an Uber board observer, which will allow him to become more involved in the company’s product strategy.
Camp said, “I will continue to work with Dara and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale.”
At the closing on Wednesday, Uber stock was trading at an 88% discount to its all-time high of $47. Notably, Camp is one of the insiders who sold over $13 million in Uber shares last month.
Uber has been working on self-driving cars as it seeks a way to operate more efficiently. Alphabet’s (NASDAQ:GOOGL) Waymo already operates a fleet of self-driving taxis. Operating fully self-driving vehicles allows Waymo to cut the cost of maintaining human drivers. However, Uber’s self-driving program has run into headwinds including a dispute with Waymo over technology.