Demand for food delivery helps Uber narrow losses in the first quarter
Uber said it saw continued demand for its food delivery business in the first quarter but bookings in its ride-hailing division were flat on the previous quarter.
The company delivered revenue of $2.9bn in the first quarter but took a $600m hit to account for a settlement relating to the classification of its UK drivers. It indicates the kind of costs Uber could face if it were forced to provide similar benefits to US drivers.
In its statement today it said it had 3.5m active drivers and food-delivery workers on its platform in the first quarter, the majority of whom work in the US.
Uber reported an adjusted $359m loss before interest, taxes, depreciation and amortisation in the period, narrowing losses by nearly $100m from the previous quarter. Analysts had expected adjusted EBITDA loss of around $452m, according to Refinitiv figures.
Ride-hail gross bookings remained largely flat from the last quarter and down 38 per cent on the previous year. Its delivery bookings by contrast soared 166 per cent year-on-year to $12.5bn.
“We outperformed both our Gross Bookings and Adjusted EBITDA outlook, with Mobility trends improving through the quarter and continued elevated growth for our Delivery business, combined with disciplined operational execution,” said chief financial officer Nelson Chai.
Chief executive Dara Khosrowshahi said: “Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings”.
“We will continue to innovate and find new ways to deepen engagement with our customers, as the only global platform that helps you go wherever you need and get whatever you want.”