Uber Confirms Rolling Revenue as the Ride-hailing Company but Reports huge Loss on Investments

Uber confirmed that the company received surging revenue in the first quarter as drivers returned. The company is in the recovery phase after the COVID-19 lows and does not intend to use the significant investment to keep its drivers working for the company. On the other hand, Uber also reports a massive loss of 5.9 billion during the same period. The loss has a general attribution to the revaluation of equity funds. Uber’s shares had a closing by more than 4 percent last week.

The company expects gross bookings valued at up to $29.5 billion. Besides, it anticipates earnings before interest, amortization, depreciation, and taxes, or EBITDA, of between $240 million and USD 270 million. Uber expects to make significant positive cash flows for the rest of the year.

Dara Khosrowshahi, the CEO of Uber, said the mobility-gross bookings for April use cases crossed 2019 levels in every region. He reported a net loss valued at $5.9 billion faced by the company in the first quarter. The loss was primarily because of its equity investments in Didi – a Chinese ride-hailing giant, Aurora – an autonomous vehicle company, and Grab – A Southeast Asian mobility & Delivery Company.

Ride-hailing companies struggled with supply and demand when the Coronavirus pandemic closed everything, and drivers disappeared from the road. Uber had to depend on incentives to persuade drivers to come back. Khosrowshahi said Uber needs to multiply the number of drivers, and it is not a new or surprising thing on the platform. The company has lots of work ahead, but the machine is rolling.

Nelson Chai, the Uber CFO, said that the company possesses the liquidity to uphold its positions and anticipates a better time to start sales. It has adjusted EBITDA worth $168 million which has gone up to $527 million in the first quarter of 2021. The company also increased its revenue 136 percent year-over-year to USD 6.9 billion. Its gross mobility bookings were $10.7 billion, which is up to 58 percent year-on-year. Also, Uber earned $13.9 billion, which is up to 12 percent year on year.

Uber hugely depended on its delivery business, including Uber Eats, during the pandemic of COVId-19. Mobility incomes have now exceeded delivery revenue. Uber’s mobility segment obtained $2.52 billion as revenue, somehow a better amount than the delivery profit of $2.51. The income strips out extra fees, tolls, and taxes from gross bookings.

The online rented vehicle company reported earnings of 1.71 billion from trips made on the platform in the first quarter of 2022, which is 18 percent more than the same quarter of the last year. Its drivers and couriers made nine billion in the first quarter of the year, which is lesser revenue than the fourth quarter.

The number of monthly active Uber customers reached up to 17%, that’s 115 million, years on year. According to the company, Uber’s drivers had a high base after the pandemic. It expects to continue with no significant incremental incentive investment.