Business Uber of food delivery for the first time brought in more revenue than taxi service. Stock Uber responded with a drop of 30% decrease in total revenues and continued high losses. The company experienced a difficult quarter, this saves judicial risks and the risk of a pandemic.
Stock Uber (NYSE: UBER), an increase of 16.7% since the beginning of the year, decreased by 2.65% in after-hours trading on Thursday, responding to the results of the second quarter.
The leadership of Uber called the quarter “the most difficult in history”, given the sharp drop in passenger traffic due to pandemic COVID-19. At the same time, restoring growth in the global business of taxi service Uber in the future will be dependent on the ability of different countries to contain the incidence.
For the second quarter ended 30 June, Uber has reported a net loss of $1.02, which is 0.16 worse than the analyst estimates of $0.86 loss per share. However, the result was better than last quarter and same quarter of last year.
The total loss for the second quarter was $1.78 billion compared with a record loss of $3,17 billion in the second quarter of last year.
The total quarterly income fell 30% to $2.2 billion, slightly exceeded the analytical estimates of $2.18 billion to See a history of revenue and profit Uber for the last 2 years can link.
For the quarter, Uber published a balance sheet available cash and cash equivalents of $8.1 billion compared with $13.7 billion a year earlier.
Two main divisions Uber showed very different results: global taxi orders decreased by 73%, while the General orders of the food delivery service Eats increased by 113%.
General orders taxi service was $3.05 billion, which was below the expected wall Street of $3.47 billion.
General orders delivery food Eats amounted to $of 6.96 billion, above the expected $6,57 billion.
Uber CEO Dara Khosrowshahi noted that the pandemic had “turned the food delivery service of luxury utilities,” saying that he does not expect strong falling of demand for Eats after the crisis, as consumers will be accustomed to order takeaway.
Uber also noted the growing demand for local courier delivery of small parcels by using UberX. According to the CEO, since the launch in early June, the service has committed $ 3 million trips around the world.
With regard to global taxi service – in recent months, orders are recovering somewhat, but slow. In the second quarter of trips in the major markets, the U.S. fell by 50-85%, but in major European markets, including France, Spain and Germany, the number of trips decreased only by approximately 35% compared to last year.
To reduce the negative impact of the pandemic, Uber has closed or sold the business Eats in the regions where the service never turned a profit, and fired about 14% of its staff (over 3500 employees). Uber has also sold its business to electric bikes Jump rival bikes called Lime, which is an Uber investor.
Despite the losses, Uber continued its expansion strategy, believing that a broad international coverage will eventually lead the company to profits. In July it announced plans to buy Postmates, competitor Eats the market food delivery, for $2.65 billion. read More in the article Marketinfo.pro “Uber Shares rose 5% on the background of rumors about a possible purchase of a competitor Eats – the company Postmates”.
On Wednesday, Uber announced the acquisition of the Autocab, the British company developing software for taxi, for undisclosed amount. Autocab owns the iGo app that connects passengers with local taxi operators. The deal should help Uber to expand its business in the UK. On the news of the promotion, Uber has grown by 4.55% on Thursday.
Continuing risk for Uber and its competitor Lyft (LYFT) are legal proceedings that can compel these companies to reclassify their taxi drivers with contractors for hired workers that would greatly increase the spending on wages and superior benefits to employees.
