Uber suffers $1.78bn loss in second quarter due to COVID

California: Uber, an American ride-hailing company lost $1.78 billion in the second quarter as millions stay home to reduce the spread of the coronavirus.

The company brought in $2.24 billion in revenue during the second quarter, down 27 per cent from the same time last year, on a constant currency basis, the company said on Thursday. 

Uber’s revenue shrink to $790 million, down 67 per cent from $2.38 billion a year ago. 

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“While we would have all hoped that by now we had a clear line of sight to the end of the pandemic, hope is not a strategy and it’s my job to ensure that Uber is well prepared for any scenario,” CEO Dara Khosrowshahi said in a conference call with investors on Thursday. 

Uber Eats

The company’s food delivery business grew as more people ordered in, but didn’t turn a profit. 

Uber’s Eats delivery business brought in $1.21 billion in revenue during the quarter. That was up 103 per cent from $595 million in last year’s second quarter. 

As some people stay closer to home, more people are ordering from Uber Eats than ever before, Khosrowshahi said. 

“The Covid crisis has moved delivery from a luxury to a utility,” he added. 

Its delivery business grew 113 per cent on a constant currency basis, but did not turn a profit, instead losing about $232 million during the quarter. 

Quarterly loss

Uber’s quarterly losses included $382 million in restructuring and related charges as the company laid off 6,700 people — a quarter of its workforce — in May. 

The company will be closing 45 offices worldwide. Its revenue fell in the US and across the world except in the Asia-Pacific region. 

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