February 28, 2024

Brighton Journal

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Uber’s revenue is up 72 percent from last year, but is incurring a loss

Uber's revenue is up 72 percent from last year, but is incurring a loss

Uber reported on Tuesday that revenue growth exceeded expectations from Wall Street, indicating that the company continued to recover from the pandemic recession as drivers returned to the platform. But it posted a net loss, in part because of its investments in other passenger carriers.

Revenue was $8.34 billion in the third quarter, up 72 percent from a year earlier. Uber’s taxi business grew 73%, while its delivery business grew 24 percent. Wall Street analysts expected revenue of $8.12 billion and a net loss of $361 million.

The company said 124 million people used Uber per month from July to September, up 14 percent from the previous year. It accounted for 1.95 billion trips, up 19 percent from the previous year.

Uber’s share price rose about 12 percent on Tuesday.

The company posted a net loss of $1.2 billion in the third quarter, including $512 million from investment in other services such as China’s Didi. It made more profit from its business operations than it lost in the third quarter, generating $358 million in free cash flow.

Uber CEO Dara Khosrowshahi emphasized cost and profitability cuts as other tech companies sent signals industry slowdown At a time of persistent inflation, high interest rates, and broader economic turmoil.

“Even as the macroeconomic environment remains uncertain, Uber’s core business is stronger than ever,” Khosrowshahi said in a statement.

Uber focused on recruiting and retaining drivers on the go Gas prices are very steep and legal disputes over how to classify them Career status of its drivers. She said the number of drivers on the podium has returned to pre-pandemic levels.

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The company announced on Friday Series of security features For Drivers and Passengers, allowing drivers to film rides and allowing drivers and passengers to record audio during rides. Uber has also changed how its app maps drivers’ routes.

Nelson Chai, Uber’s chief financial officer, said in a statement that Uber is focused on “disciplined cost management to meet its growth and profitability commitments.”

In a call with investors Tuesday morning, Mr. Khosrowshahi said the biggest factor affecting Uber’s financials is the strength of the US dollar, which has hurt global corporate sales. He added that the company “sees no signs of consumer weakness” for both its transportation and delivery services.

“While we were looking for a signal, we don’t see any,” Mr. Khosrowshahi said. But he added that in light of greater economic uncertainties, “we would be cautious moving forward.”