Uber mentioned its enterprise was recovering from the slowdown brought on by the pandemic, though it continued to lose cash.
The firm mentioned on Wednesday that income was $2.9 billion in the first three months of the yr, down 11 p.c from the similar interval a yr in the past.
The decline in earnings included $600 million that Uber has earmarked to pay for settlements with drivers in Britain, the place the Supreme Court dominated in February that drivers should be classified as workers and be entitled to a minimal wage and trip time.
Excluding the settlement fund, Uber’s income was $3.5 billion, an eight p.c improve from the earlier yr that outpaced Wall Street expectations of $3.28 billion.
Uber misplaced $108 million, an enchancment from the earlier yr, when it misplaced $2.9 billion. Uber attributed the change to the sale of its autonomous vehicle unit, which was acquired by the self-driving truck start-up Aurora in December. Uber’s working loss for the quarter was $1.5 billion — additionally made worse by the British driver settlement.
On Tuesday, Uber’s main competitor in the United States, Lyft, mentioned that it was additionally recovering from the slowdown brought on by the pandemic as riders started to return to the platform. Still, Lyft’s income for the quarter was $609 million, a 36 p.c decline from the earlier yr. Losses had been $427.Three million, 7 p.c greater than its losses the earlier yr.
“Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings,” Dara Khosrowshahi, Uber’s chief government, mentioned in a press release.
Uber’s inventory worth dropped greater than four p.c in after-hours buying and selling on Wednesday night.
While shoppers have prevented journey over the previous yr, Uber’s enterprise has been bolstered by its meals supply service, Uber Eats. Revenue from supply was $1.7 billion, a 270 p.c improve from a yr in the past. Despite reopenings in Sydney and New York City, Uber mentioned that prospects have continued to order meals supply at a robust tempo.
But whereas riders have began returning to Uber and Lyft, drivers have been more hesitant. Both firms mentioned they’ve confronted driver shortages. During a name on Tuesday with monetary analysts, Lyft’s president, John Zimmer, mentioned he anticipated drivers who noticed meals supply as a safer possibility throughout the pandemic would return to experience hailing as a result of the pay is healthier and since drivers miss social interactions with riders.
Uber mentioned it had 3.5 million energetic drivers and couriers throughout the first three months of the yr, down 22 p.c from the earlier yr.