San Francisco’s Uber posts $509mln adjusted loss on driver incentives as trips rise

Uber Technologies Inc. had reported a whopping $509 million in losses over fiscal second quarter of 2021

by Sourav D
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San Francisco’s Uber posts $509mln adjusted loss on driver incentives as trips rise

Uber Technologies Inc., the San Francisco, California-headquartered ride-sharing industry trailblazer, had extended losses over fiscal second quarter of 2021, as the ride-hailing megalith had reportedly spurred up spending aimed at luring drivers in its platform, sending the company shares down by as much as 3.3 per cent on Wednesday’s post-market trading.

However, shares’ prices of Uber Technologies Inc., the Californian ride-hailing and food delivery company, had roared back vigorously on Thursday’s pre-market trading and jumped as much as 5.52 per cent, as investors seemed to have digested the Uber Technologies Inc’s slated path towards profitability.

Uber shares had wrapped up Thursday’s Wall Street nearly 3 per cent higher to $43.08 apiece. In a post-earning call with the analysts, Uber executives had assured that the company would deliver a sharp turnaround in profitability over the current quarter even though major US cities including New York had begun to incline restrictions.

Uber takes $509 million hit in Q2, 2021 as expenses soar

According to the second-quarter earnings’ report of Uber Technologies Inc., the ride-sharing behemoth had reported an acrimonious $509 million in losses before interest, taxes, amortization and depreciation on an adjusted basis, stretching out fiscal wounds nearly $150 million from a quarter earlier and missing an analysts’ estimate of a loss of $324.5 million, data from Refinitiv had revealed.

Aside from that, Uber’s gross bookings had jumped to a record $22 billion over the latest quarter, however, a mammoth $250 million in additional expenses for driver incentives, had weighed heavily on the company’s ride-sharing business, nonetheless, Uber Chief Executive Dara Khosrowshahi said in a post-earning conference call with the reporters that the company’s food delivery business would likely to offset the losses in ride-hailing deeper into the second half of 2021.

Concomitantly, Uber had reported a Q2, 2021 revenue of $3.9 billion, marginally beating an analysts’ estimate of $3.75 billion, IBES data from Refinitiv had revealed.

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