Many drivers stopped driving for Uber because the demand for rides had fallen sharply due to the corona pandemic. In the past quarter, the company pulled the wallet hard to entice them to return.
That effort resulted in a larger-than-expected operating loss. Earnings before interest, taxes and other expenses were minus $509 million. The taxi company expects its third-quarter earnings to be less than $100 million.
Nevertheless, the company closed the measurement period with a net profit. That marked the first quarterly profit since the company was floated on the stock exchange in 2019. Uber owed the black numbers to its share in Chinese peer Didi. That company made an IPO in June, from which Uber profited.
Uber has been delivering meals to restaurants since 2014, and the pandemic has greatly accelerated that branch’s growth. It is now the part of Uber that generates the most revenue. Uber’s second-quarter revenue doubled from the same period last year to $3.9 billion. Net Uber posted a profit of $1.1 billion. Last year in the second quarter there was a loss of $1.8 billion.
Uber loses on driving, wins on delivery | Financial
Source link Uber loses on driving, wins on delivery | Financial