Uber loses USD2.9 billion in Q1, grows Uber Eats

TD Editor

Ride-hailing giant Uber lost USD2.9 billion in the first quarter due to the coronavirus pandemic.

While the San Francisco-based tech company recorded USD 3.54 billion in revenue in the first quarter, up 14% from the same time last year, its main business has been paralysed by the shutdown. Uber’s financial was hurt when the value of its investments in Chinese ride-hailing giant Didi, Singapore-based Grab and others plummeted by USD 2.1bn as demand collapsed in those regions.

Meanwhile, revenue in its Eats meal delivery business grew 53% as customers shuttered at home opted to order in. The company added key accounts as well as enabled delivery from grocery and convenience stores.

“At a time when our rides business is down significantly due to shelter-in-place, our Eats business is surging,” Uber CEO Dara Khosrowshahi said on a conference call with investors. “The big opportunity we thought Eats was just got bigger.”

In an attempt to streamline losses, Uber said it was cutting 3,700 full-time workers or about 14% of its workforce. Careem, Uber’s subsidiary in the Middle East, cut its workforce by 31%.

Moreover, Uber is offloading Jump, its bike and scooter business, to Lime, a company in which it is investing USD85 million. Jump had been losing about USD 60m a quarter.

Grocery delivery could be a part of Uber’s future in the US. Uber updated its driver app to make it easier for ride providers to pick up delivery work, and nearly 40% of drivers in the U.S. and Canada cross-dispatched to work for the Eats platform in April, the company said.

You might also like

Comments are closed.

X
GET THE LATEST TRAVEL INDUSTRY NEWS, JOBS AND EVENTS STRAIGHT TO YOUR INBOX!
Join over 180,000 travel agents, professionals and executives subscribed to our daily newsletter.
You can unsubscribe at any time
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Close
Enable Notifications    Ok No thanks