Uber released the Q1 report showing that it fell short on revenue and missed the earnings estimates.
The biggest ride-hailing provider in the world reported an adjusted loss of $1.70 per share and revenue of $3.5 billion. It is much more than 84 cents expected by Wall Street. The overall net loss was of $2.9 billion. Uber Eats is responsible for 16% adjusted net revenue. In April, the number of rides dropped by 80%, but during the past week, it managed to rebound by 8% as lockdown easing measures began to take shape.
The number of active customers increased by 11% compared to the same period last year.
Like its rival, Lyft, Uber had to lower its workforce by 14%, which is around 3,700 jobs – customer support and recruiting division mostly.
Uber CEO, Dara Khosrowshahi, thinks that business will suffer for only a few more months before getting back on its feet.
Even though the pandemic cut deep in ride-hailing demand, Uber follows its forecasts and plans to expand in Latin America. It wants to purchase Cornershop – a grocery delivery platform, since October 2019. Also, new services are in sight, such as Uber Connect and Uber Direct, focused on retailers.
The stock price gained 11% during regular trading hours on Thursday and pushed the market capitalization over $53 billion. The rally continued in after-hours, the stock gaining another 6.1%.
Uber is, all in all, on a rising slope this year; meanwhile USA500 lost 11.8% in the last 4 months.
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Sources: thestreet.com, marketwatch.com, edition.cnn.com
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