Uber revenue increases, but food delivery costs take a bite out of profit GlobeBusiness
However, net loss attributable to Uber widened to $1.1 billion, or 64 cents per share, from a loss of $887 million, or $1.98 per share, a year earlier.Three-quarters of Uber’s revenue came from its ride-hailing service, available in more than 700 cities worldwide. The core segment had its best quarter yet and on its own, Uber’s ride-hailing business would already be profitable, but the company is burning through cash pursuing an array of other initiatives.
Gross bookings, a measure of total value of rides before driver costs and other expenses, rose 28 per cent to $18.13 billion from a year earlier, compared with estimates of $18.03 billion. While revenue at Uber Eats grew nearly 14 per cent on a quarterly basis, Uber also increased spending to attract drivers, with promotional incentives outpacing the segment’s revenue growth. Promotional costs as a share of revenue at Uber’s Eats business grew 4 per cent from the third quarter.
Uber in November promised to be profitable on an adjusted basis by the end of 2021, excluding stock-based compensation expenses and other items.In reaching its profitability goal, Uber has vowed to exit markets where it could not become the dominant food delivery player.
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