Wednesday 12/8/21

Uber posts strong growth despite 2.4 billion quarterly net loss

Analysts had expected losses

FILED - The Uber company logo at the company's headquarters. France's top court has ruled that a former Uber driver was an employee of the ride-hailing platform, in a decision with potentially fraught consequences for the company's business model. The Court of Cassation approved an appeal court judgement in a case taken by a driver after the company closed his account. Photo: Christoph Dernbach/dpa.
The Uber company logo at the company's headquarters. Photo: Christoph Dernbach/dpa.

Ride-hailing company Uber increased its revenue by 72% year-on-year to 4.8 billion dollars as it continued to recover from a pandemic-induced slump, the company said as it reported its third-quarter results on Thursday after the US stock market closed in San Francisco.

The company's rideshare business, which at times almost came to a standstill during the pandemic, celebrated a strong comeback with a 67-per-cent increase year-on-year. In addition, Uber's food delivery business continued to flourish.

The company reported a net loss of 2.4 billion dollars, which it mainly attributed to a drop in the value of its investment holdings, particularly in China's ride-hail giant Didi.

Uber also reported its first-ever EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) profitable quarter as a public company of 8 million dollars.

Analysts had expected losses.

Shares fell

Uber chief financial officer Nelson Chai spoke of an "important milestone."

"Not only did our Mobility business recover to pre-Covid margins this quarter, our core restaurant delivery business was profitable on an Adjusted EBITDA basis for the first time as well, bringing the full Delivery segment close to breakeven," he said.

Shares initially fell in after-hours trading.