During the pandemic, Uber Technologies Inc registers more than doubled orders on its food delivery service in the second quarter but at the same time, demand for ride-hailing trips seems to be marginally recovered.
According to this U.S. based ride-hailing firm, despite the larger challenges amid COVID-19 situation, it is still sticking to its goal of being profitable on an adjusted basis before the end of 2021. This is all because of its stringent cost-cutting measures and a strong balance sheet.
Notably, Uber recorded an adjusted loss in earnings before interest, taxes, depreciation, and amortization of $837 million in the second quarter. The company’s shares were down 2.9% at $33.72 in after-hours trading.
Uber’s ride-hailing service, in the past responsible for nearly two-thirds of its revenue, increased 5 percentage points from their low in April. But at the same time, gross bookings remained down 75% from last year.
On Thursday, Uber Technologies Inc. posted a $1.8 billion net loss from April through June. This also includes charges related to laying off 23% of its global workforce during the pandemic.
The number of active platform users in its cab aggregator app across the 69 countries nearly halved year-over-year, from 99 million to 55 million.
That’s the reason Uber reported second-quarter revenue fall at 29% to $2.24 billion from the year prior. This beats analysts’ average estimate of $2.18 billion, which is estimated on IBES data from Refinitiv.
Meanwhile, Uber Eats‘ revenue doubled to $1.2 billion, boosted by greater demand for delivery as people 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 Eats, whose gross bookings more than doubled, narrowed losses, recording a $232 million adjusted EBITDA loss in the second quarter.
Uber Eats was also gaining traction in the suburbs, including the outer boroughs of New York City, where the food delivery service is now the market leader, the company said in its statement.
As per Uber executives, the cost-cutting was helping to improve margins, along with better route planning and more restaurants relying on its delivery couriers. Interestingly, some recent reports also suggest that this U.S. based ride-hailing service provider confirms that it was buying the UK’s taxi tech firm Autocab to reach customers where it does not currently operate across the U.K.