Uber Posts 14% Rise in Revenue as Growth Slows

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Uber’s income elevated 14 % in its most up-to-date quarter, the corporate reported on Tuesday, however the progress was its slowest for the reason that coronavirus pandemic started easing final yr.

The San Francisco-based firm posted income of $9.2 billion, up from $8.1 billion within the second quarter final yr. The 14 % progress was slower than the 105 % improve a yr earlier and down from 29 % within the earlier quarter. Wall Avenue analysts had estimated income of $9.3 billion.

Uber’s gross bookings — the quantity paid by prospects — totaled $33.6 billion, up 16 % from yr earlier. Web revenue was $394 million, in contrast with a $2.6 billion loss a yr earlier and pushed by positive aspects from investments in different corporations.

“We’re centered on driving important demand within the years forward — each by attracting new riders to Uber and by getting present riders to make use of Uber extra,” Dara Khosrowshahi, the chief government, stated in an announcement.

The corporate additionally stated Nelson Chai, its chief monetary officer, will go away on Jan. 5. It didn’t present a purpose. Uber stated it was trying to find a alternative.

Demand for journey hailing and meals supply, Uber’s foremost choices, has rebounded as company and leisure journey has recovered after the pandemic. Early within the pandemic, Uber rides plunged, and the corporate lower about 7,000 staff in 2020 whereas folks had been caught at residence. By early this yr, after vaccines turned broadly out there and folks began to maneuver about extra, the corporate was reporting document quarterly income.

Uber’s greatest progress within the quarter was in ride-hailing, with income rising 38 %. Its lively prospects grew 12 % to 137 million, whereas the variety of journeys taken previously three months rose 22 % to 2.3 billion.

Gross bookings for meals supply additionally elevated 12 % from a yr earlier.

However Uber was dragged down by its freight service, with income declining 30 % as the speed and quantity of shipments dropped after the pandemic.

Uber additionally grappled with increased prices, because it spent on incentives to lure drivers again. Complete prices and bills had been $18 billion, up 12 % from a yr earlier.

Mr. Khosrowshahi stated a few of the spending had paid off. “We continued to draw extra drivers to Uber than ever earlier than,” with lively drivers up 33 % over the previous yr, he stated.

In June, the corporate laid off 200 staff from its recruiting crew — lower than 1 % of its employees — to streamline prices.

Uber’s foremost U.S. rival, Lyft, is about to report quarterly earnings subsequent Tuesday. Lyft has struggled financially because it competes with Uber, which is way larger. This yr, Lyft appointed a brand new chief government and laid off 1,200 employees, or 30 % of its work pressure.

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