Uber Sees $1.8bn Loss As Pandemic Stalls Revenue

Uber on Thursday reported a $1.8 billion loss in the recently ended quarter as the pandemic caused its shared-ride business revenue to plunge.

Overall revenues skidded 29 percent from a year ago to $2.2 billion, as gains from delivery failed to offset a massive 75 percent drop in its ride-hailing bookings, San Francisco-based Uber said.

Uber shares dropped more than four percent in after-market trades that followed release of the earnings figures.

“Our team continues to move at Uber speed to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in delivery,” chief executive Dara Khosrowshahi said.

“We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”

Uber’s global ride-hailing operations have been hit hard during the coronavirus lockdowns, with bookings down 75 percent and revenue declining 67 percent.

The delivery operations under Uber Eats meanwhile saw revenues more than double to $1.2 billion — and overtake rideshare revenue in the three months ending in June.

Uber has made other changes in recent months, sealing a deal for the Postmates delivery service in the US while divesting its Jump scooter and bike-sharing unit.

It has also quit some makers including Austria, Czech Republic, Egypt, Honduras, India, Saudi Arabia, South Korea, Peru, Romania, United Arab Emirates, Ukraine, and Uruguay.

Chief financial officer Nelson Chai said the company was on track to achieve profitability, on an adjusted basis excluding debt and other costs, by the end of 2021.

AFP

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