The US-based ride-hailing giant Uber announced its first-quarter (Q1) financial results on Wednesday. In the earnings report, the company revealed that its gross bookings increased by 24% to USD 19.5 Billion since Q1 2020. The company reported a revenue of USD 17.2 Billion in Q4 2020. In this quarter, it disclosed a net loss of USD 108 Million, a dramatic drop of 96% since Q4 2020. This was due to the sale of its self-driving unit Advanced Technologies Group (ATG) to Aurora for approximately USD 4 Billion in December 2020.
Uber delivered USD 2.9 Billion in revenue while its adjusted EBDITA loss was USD 359 Million in Q1 2021. While in the last quarter, the company reported a revenue of USD 3.2 Billion and an adjusted EBIDTA loss of USD 454 Million. In the press release, it said that it took a hit of USD 600 Million in revenue “due to the accrual made for the resolution of historical claims in the UK relating to the classification of drivers.” The classification of a driver into an employee mandates Uber to add employment benefits such as unemployment insurance.
The company said that it has around 3.5 Million active drivers and couriers on its platform. This is a significant drop of 22% year over year, while an increase of 4% since last quarter. Last month, Uber announced a USD 250 Million stimulus to get back drivers on the road. The COVID-19 pandemic has hit the transportation system across the globe, which in turn, has forced independent contractors to pull out from the ride-hailing programs of companies such as Uber and Lyft.
Uber Relied on Delivery Segment for Lost Revenue
While Uber’s ride-hailing segment couldn’t perform well due to the pandemic, it reported gross bookings of 12.5 Billion in its delivery segment. The company’s gross bookings rallied 24% quarter over quarter, while grew by 157% year over year. Its delivery segment delivered a revenue of USD 1.74 Billion, a growth of 28% and 230% since Q4 2020 and Q1 2020 respectively. Uber’s emerging verticals that involve the delivery of grocery, alcohol, and convenience reached USD 3 Billion in revenue. The company claims that the surge in the revenue was due to geographical expansion and acquisition of Mexico-based grocery delivery platform Cornershop in July 2020.
CEO and CFO Statement on Earnings Report
“Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings,” said Uber’s CEO Dara Khosrowshahi. “We will continue to innovate and find new ways to deepen engagement with our customers, as the only global platform that helps you go wherever you need and get whatever you want.”
In a call with investors, CFO Nelson Chai said “For the remainder of the year, I would remind you that delivery gross bookings year-over-year comparisons will become tougher as we continue to face significant forecasting uncertainty in predicting post-reopening consumer behavior.” While in the earnings report he stated that “Uber is very well positioned to drive long-term value, with improving EBITDA performance, significant liquidity, and increasingly valuable minority investments.”
Company’s Latest Developments
In April 2021, Uber completed the acquisition of the UK-based technology company Autocab. The latter company provides systems and platforms for private hire and taxi operators. The former company will use Autocab’s iGO marketplace to connect the riders with local taxi operators and increase their earning opportunities. Uber said in the press release that it will explore Autocab’s technology solutions to expand it to other platforms such as delivery.
Earlier this week, Uber announced a partnership with digital delivery company Gopuff. With the partnership, consumers’ orders on Uber Eats will be sent to the network of the latter company’s micro-fulfillment centers. Uber’s head of delivery and new verticals delivery said in a press release that “With this partnership, we are able to leapfrog the competition in using Gopuff’s network of micro-fulfillment centers to instantly meet consumer demand for thousands of products—and I’m incredibly excited about the opportunities ahead.”
Uber Announces Free Rides in India
Uber has rolled out a feature for a free ride to the people who want to reach their vaccination center to get vaccinated. In an email shared by the company, it said “Transportation shouldn’t be a barrier to getting access to the COVID-19 pandemic. That’s why we are providing free ride to and from vaccine centers for everyone eligible for vaccinations.” The company had introduced a similar feature in the US to encourage people to vaccinatate themselves.
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