Big Loss for the Uber in Corona Time
Expectations for Uber’s last quarter have been varied, as it is difficult to know what the market looks like in the wake of the corona time. According to various calculations, the company lost between 80 and 90 percent of its taxi service bookings, depending on the market, at its worst.
Uber’s sales for the first quarter of the year landed at $ 3.54 billion. That was in line with expectations of $ 3.51 billion, according to Refinitive’s analyst compilation. Revenue corresponds to a growth of 14 percent compared to the same period last year.
The loss per share was $ 1.70, compared to the expected minus $ 0.88. The net loss for the company was $ 2.9 billion, which was a larger sum than in the previous three quarters. It includes $ 2.1 billion in write-downs for Uber’s holdings in other companies.
Reservations for the taxi service went down by 5 percent during the quarter, while food delivery service Eats went up by 52 percent.
Uber’s CEO Dara Khosrowshahi said taxi bookings have started to rise again since the bottom level in mid-April, when the company went out and withdrew its forecast for the past quarter. At that point, the loss was 80 percent, he said in a conversation with analysts.
Earlier this week, Uber went out and announced that it was resigning 14 percent of its workforce, which corresponds to around 3,700 people, and the share fell on the message. Dara Khosrowshahi waives salary year round. Also last year, more than 1,000 people were allowed to leave the company in three rounds.
This week, Uber and its competitor Lyft have also been sued in California because the companies have classified drivers as consultants instead of employees, and have not paid benefits as sick pay.
Uber‘s share increased sharply during the trading day on Thursday by over 11 percent. The upturn began on Wednesday when Lyft showed a better result than expected. So far this year, Uber’s share price has risen by just under 4 percent.
When the quarterly report came on Thursday, the share went down by just over 3 percent in the after-sales, and then rushed up again by as much as 10 percent.
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Big Loss for the Uber in Corona Time - /10
Expectations for Uber's last quarter have been varied