A day after shedding 14% of its employees, Uber reported Thursday that it misplaced $2.9 billion within the first quarter — greater than analysts had anticipated — however confirmed robust progress in its Eats meals supply division and a decline in its ride-hailing enterprise, because the pandemic affected them in several methods.
Additionally Thursday, Uber mentioned it’s investing within the San Francisco scooter-rental firm Lime, and transferring its Leap bike/scooter division to Lime, which is able to end in most of Leap’s 600 staff being laid off.
Uber’s income of $three.54 billion topped analysts’ expectations of $three.02 billion and was up 14% from the identical time final 12 months.
Uber’s gross bookings have been $15.eight billion, up eight% from the identical time final 12 months. Rides bookings have been $10.9 billion, down three%. Uber Eats grew 54% to $four.7 billion. The Uber Freight division, which arranges deliveries by truck, had $198 million in bookings, up 55%.
A lot of Uber’s $2.9 billion loss got here from write-downs in abroad investments in ride-hailing corporations like Seize and Didi. Excluding these write-downs for inventory compensation and investments, the loss would have been $1.1 billion.
Uber shares have been down about four% in after-hours buying and selling.
“Whereas our Rides enterprise has been hit exhausting by the continuing pandemic, we now have taken fast motion to protect the power of our steadiness sheet, focus further assets on Uber Eats, and put together us for any restoration state of affairs,” CEO Dara Khosrowshahi mentioned in an announcement. “Together with the surge in meals supply, we’re inspired by the early indicators we’re seeing in markets which might be starting to open again up.”
The pandemic has had a dramatic impression on Uber’s ride-hailing enterprise, which plunged 80% in April, Khosrowshahi mentioned on a convention name with traders. However it’s beginning to slowly return with 4 subsequent weeks of progress.
Whereas current bookings rose modestly in markets akin to San Francisco (up eight%), that they had robust recoveries in states that had already reopened from shelter-in-place orders, he mentioned. Uber bookings have been up 43% in Georgia and 50% in Texas.
Going ahead, Khosrowshahi mentioned he thinks that extra corporations might companion with Uber to ferry staff to work somewhat than asking them to courageous public transit.
“Commute is the use case that can lead” the restoration from the shutdown, he mentioned.
On the similar time, Uber is growing partnerships with transit methods to supply late-night service to allow them to shut for cleansing, for example.
Uber is engaged on plans to require face coverings for each drivers and riders within the U.S. and different nations, he mentioned.
Uber Eats has accelerated its progress far past projections, with an 89% improve in April bookings, excluding India, Khosrowshahi mentioned. Many further eating places, together with high-end ones, have signed up for the supply service.
Uber can be pursuing grocery supply, partnering with supermarkets and comfort shops to move a restricted menu of things. Its acquisition of Cornershop, the most important grocery supply service in Latin America, ought to turn into remaining quickly.
Khosrowshahi mentioned that workforce reductions and different cost-cutting steps will save $1 billion in annualized fastened prices.
Uber on Wednesday laid off three,700 buyer assist and recruiting staff worldwide, and signaled that extra cuts may comply with. Smaller rival Lyft final week mentioned it could lay off 17% of its staff, about 982 jobs; furlough tons of; and minimize salaries for a lot of staff.
Regardless of its belt-tightening for workers, Uber opened its pockets to take a position $85 million in Lime, whose enterprise has been buffeted by the pandemic and stay-in-place orders.
Present Lime traders Alphabet, Bain Capital Ventures and GV additionally joined the Lime funding spherical, which totaled $170 million.
Lyft, which gives street-rental bikes known as Bay Wheels, sued San Francisco in June to get Leap bikes off the road, saying it was promised exclusivity. On Thursday, Lyft mentioned it had reached a take care of the town to finish Leap’s service in San Francisco by Might 26.
Many drivers, who’re unbiased contractors, say their income has plummeted. Khosrowshahi mentioned that having the choice to modify to creating Uber Eats deliveries has helped them.
Each Lyft and Uber now face a big authorized risk. On Wednesday, California Lawyer Common Xavier Becerra and the town attorneys of San Francisco, Los Angeles and San Diego sued each corporations, saying that their drivers should be employees below the state’s AB5 gig-work regulation that took impact in January. Protecting worker advantages would add hundreds of thousands to the businesses’ bills.
In the meantime, the 2 have joined forces with DoorDash, Instacart and Postmates on a $110 million initiative for the November poll, asking voters to permit their drivers and couriers to stay unbiased contractors who’re entitled to some wage ensures and a few advantages.