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Uber is enthusiastic about the delivery business as demand for rideshare is flat

Uber claimed that it “started firing on all cylinders” in the record high quarter of total bookings, but its food delivery business continues to work hard, flattening bookings.

Uber The total number of bookings (the sum of all transactions) was $ 19.5 billion, compared to the same period last year when the early effects of the pandemic began to squeeze the business.

However, rideshare bookings fell slightly from the previous quarter, down 38% year-on-year.

The lack of available drivers is hampering sector recovery. For the first time on Wednesday, Uber revealed that 3.5 million active drivers and courier companies are working on the platform. It was up 4% from the previous quarter but down 22% year-on-year.

Revenue for the quarter was $ 2.9 billion, below analysts’ estimates. This includes an estimated $ 600 million in future costs to resolve past wage claims in the United Kingdom. Breakthrough court defeat Beyond the classification of workers who will see domestic drivers gaining additional benefits.

Discounting the accrual, Uber’s total revenue was $ 3.5 billion, up 8% year-on-year, surpassing analysts’ estimates, Uber said. As with most pandemics, its delivery sector accounted for the majority of sales, up 230% from the first quarter of 2020 to $ 1.7 billion.

One-off $ 1.6 billion plunge from Sale of autonomous driving division Helping Uber come close to a profitable quarter, it recorded a net loss of $ 108 million compared to $ 2.9 billion in the year-ago quarter.

Uber’s recommended performance metric, pre-depreciated adjusted ebitda revenue, also exceeded analysts’ expectations, losing $ 359 million, 41% higher than a year ago. Wall Street expected a loss of $ 452 million, according to FactSet.

CEO Dara Khosrowshahi said in a statement accompanying the filing, “Uber continues to use its expanding delivery service, while more consumers are riding with us again, so everything. I’m starting to fire in my cylinder. ”

On Tuesday, the company announced that it would partner with the Rapid App. Shipping company Gopuff We use Gopuff’s network of warehouses and delivery drivers to provide useful items through the Uber Eats app. Uber receives a private commission for each sale.

Uber maintains its profitable quarterly target on an adjusted ebitda basis by the end of the year. Rideshare demand is showing strong signs of returns in areas where the blockade has been loosened and citizens have been vaccinated.

As part of its revenue release, Uber shared data on Sydney and New York, two of the largest markets for vehicles and deliveries. This suggests that the total number of food delivery reservations increased after the resumption, and the demand for vehicle share increased.

As the economy resumed, full-scale ride-sharing workers were shown to be reluctant to take on jobs.

Last month, Uber unveiled a $ 250 million “stimulation” package of additional incentives for drivers, touting organic wage increases as rising demand boosted fares. On Tuesday, rival Lyft advertised that ride-sharing drivers were more profitable and more socially interacting than dropping food.

Whether it’s vehicles or food, Uber has 98 million active users, up 5% from the previous quarter, but down 5% from the same period last year.

Uber is enthusiastic about the delivery business as demand for rideshare is flat

Source link Uber is enthusiastic about the delivery business as demand for rideshare is flat

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