REUTERS: Uber Technologies Inc said demand for its food-delivery service more than doubled in the second quarter as many users remained largely homebound, while demand for ride-hailing trips was only marginally recovering from pandemic rock-bottom.
The company said that despite those larger challenges it is sticking to its goal of being profitable on an adjusted basis before the end of 2021 thanks to stringent cost-cutting measures and a strong balance sheet. Uber recorded an adjusted loss in earnings before interest, taxes, depreciation and amortization of US$837 million (636 million pounds) in the second quarter.
Shares dropped 4.2per cent to US$33.28 in after-hours trading. During the regular session the shares rose 4.5per cent.
Ride-hailing trips, in the past responsible for nearly two-thirds of Uber's revenue, increased 5 percentage points from their low in April, but gross bookings remained down 75per cent from last year.
The company on Thursday posted a US$1.8 billion net loss in the months from April to June, including charges related to the laying off of 23per cent of its global workforce during a period when infections of the novel coronavirus continued to spread in the United States, Uber's largest market.
The number of active platform users across the 69 countries in which Uber operates nearly halved year-over-year, from 99 million to 55 million.
Uber's second-quarter revenue fell 29per cent to US$2.24 billion from the year prior, beating analysts' average estimate of US$2.18 billion, according to IBES data from Refinitiv.
Revenue at Uber Eats doubled to US$1.2 billion, boosted by greater demand for delivery as Americans largely continue to stay home. Uber last month expanded its delivery reach by announcing the acquisition of Postmates Inc for US$2.65 billion to expand the business of supplying everyday goods.
Uber's ride-hailing segment remained battered by the coronavirus crisis, with revenue from the United States and Canada, its largest market, declining US$1.25 billion. Nevertheless, ride-hailing was the only segment generating an adjusted EBITDA profit, of US$50 million.
Uber Eats, whose gross bookings more than doubled, continued its loss-making streak but narrowed losses, recording a US$232 million adjusted EBITDA loss in the second quarter.
(Reporting by Tina Bellon in New York and Akanksha Rana in Bangalore; Editing by Peter Henderson and Matthew Lewis)