Uber rides demand eviscerated by COVID-19; food-delivery business doubles

11Views

August 7, 2020

Uber Technologies Inc said demand for its food-delivery service more than doubled in the second quarter as many users remained largely homebound, while demand for ride-hailing trips was only marginally recovering from pandemic rock-bottom.

The company said that despite those larger challenges it is sticking to its goal of being profitable on an adjusted basis before the end of 2021 thanks to stringent cost-cutting measures and a strong balance sheet. Uber recorded an adjusted loss in earnings before interest, taxes, depreciation and amortization of $837 million (636 million pounds) in the second quarter.

Shares dropped 4.2% to $33.28 in after-hours trading. During the regular session the shares rose 4.5%.

Ride-hailing trips, in the past responsible for nearly two-thirds of Uber’s revenue, increased 5 percentage points from their low in April, but gross bookings remained down 75% from last year.

The company on Thursday posted a $1.8 billion net loss in the months from April to June, including charges related to the laying off of 23% of its global workforce during a period when infections of the novel coronavirus continued to spread in the United States, Uber’s largest market.

The number of active platform users across the 69 countries in which Uber operates nearly halved year-over-year, from 99 million to 55 million.

Uber’s second-quarter revenue fell 29% to $2.24 billion from the year prior, beating analysts’ average estimate of $2.18 billion, according to IBES data from Refinitiv.

Revenue at Uber Eats doubled to $1.2 billion, boosted by greater demand for delivery as Americans largely continue to stay home. Uber last month expanded its delivery reach by announcing the acquisition of Postmates Inc for $2.65 billion to expand the business of supplying everyday goods.

Uber’s ride-hailing segment remained battered by the coronavirus crisis, with revenue from the United States and Canada, its largest market, declining $1.25 billion. Nevertheless, ride-hailing was the only segment generating an adjusted EBITDA profit, of $50 million.

Also Watch

Former J&K Lt Governor GC Murmu Appointed As Comptroller And Auditor General Of India

Uber Eats, whose gross bookings more than doubled, continued its loss-making streak but narrowed losses, recording a $232 million adjusted EBITDA loss in the second quarter.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f2c4521fbcc0112a8a3affc
[youtube_id] => PQtosTyUNLk
Uber rides demand eviscerated by COVID-19; food-delivery business doubles => Former J&K Lt Governor GC Murmu Appointed As Comptroller And Auditor General Of India
)

[1] => Array
(
[id] => 5f2c43f5cc17de12942f4b98
[youtube_id] => fiLDvK7AUOE
Uber rides demand eviscerated by COVID-19; food-delivery business doubles => Rhea Chakraborty’s 1st Reaction To CBI FIR In Sushant Singh Rajput Death Case | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c778c2f2492e214960&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-04T02:25:03.000Z&publish_max=2020-08-07T02:25:03.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Uber rides demand eviscerated by COVID-19; food-delivery business doubles

Also Watch

Speak Your Mind

LEAVE A REPLY Cancel reply

Get in Touch

Recommend for You

Oh hi there It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

You might also like

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

About Us

Follow Us

Support Us & Be a Patreon

Add QNewsHub to your Homescreen!

Oh hi there
It’s nice to meet you.