Uber’s financial figures reveal a stunning fact

Uber

When Uber Technologies was founded by Garrett Camp and Travis Kalanick in 2009 it was a ride-sharing business.

It was in August 2014 that Uber launched Uber Eats, a food delivery service, and current CEO Dara Khosrowshahi is extremely thankful.

Uber
Uber CEO Dara Khosrowshahi has a fight on his hands to make the company turn over a profit. Photo: Wikimedia Commons

Uber lost US$1.78 billion in the second quarter, the company reported, as the coronavirus pandemic decimated its ride-hailing business, with millions of users staying home to try and reduce the spread of the coronavirus. It should be reported that the company reported a loss of US$5.24 billion 12 months earlier.

The company’s second quarter financial result also revealed that Uber Eats is now more popular than the ride-sharing business, AP News reported.

The San Francisco-based ride-hailing business brought in US$2.24 billion in revenue during the second quarter, down 27% from the same time last year, on a constant currency basis.

Gross bookings from trips, deliveries and other services, in the April to June quarter, fell 35% from the same period last year, to US$10.2 billion. The number of active users of Uber’s services fell by 44% to 55 million. Its delivery business grew 113% on a constant currency basis, but did not turn a profit, instead losing about US$232 million during the quarter.

Khosrowshahi, speaking to investors, said Uber Eats had shifted from being a “luxury to a utility”, and was now as big as the ride-share business was when he took over the company in 2017.

“We essentially built a second Uber in under three years,” he said.

Uber’s quarterly losses included US$382 million in restructuring and related charges as the company laid off 6,700 people — a quarter of its workforce — in May. Uber said at the time that it would be closing or consolidating 45 offices worldwide.

Its revenue fell in the US and across the world except in the Asia-Pacific region.

The company said it still expects to become profitable sometime in 2021.

“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,” said Khosrowshahi.

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