Uber Lost $1.8 Billion In Q2 As Riders Stayed Home

Uber's mobility business saw its revenue shrink to $790 million, down 67% from $2.38 billion a year ago.

Uber lost $1.78 billion in the second quarter as the pandemic carved a gaping hole in its ride-hailing business, with millions of people staying home to reduce the spread of the coronavirus.

Its food delivery business grew as more people ordered in, but that booming part of its business didn’t turn a profit.

The San Francisco-based ride-hailing giant brought in $2.24 billion in revenue during the second quarter, down 27 percent from the same time last year, on a constant currency basis, the company said Thursday.

Uber’s mobility business, which includes ride-hailing and micro-mobility options such as scooters and bikes, saw its revenue shrink to $790 million, down 67 percent from $2.38 billion a year ago.

Uber’s Eats delivery business — once just a fraction of the company — brought in $1.21 billion in revenue during the quarter. That was up 103 percent from $595 million in last year’s second quarter.

Gross bookings for Uber’s mobility business plummeted 73 percent from the same quarter last year. Its delivery business grew 113 per cent on a constant currency basis but did not turn a profit, instead of losing about $232 million during the quarter.

Uber’s quarterly losses included $382 million in restructuring and related charges as the company laid off 6,700 people — a quarter of its workforce — in May. Uber said at the time that it would be closing or consolidating 45 offices worldwide.

Its revenue fell in the U.S. and in across the world except in the Asia-Pacific region. Uber said it still expects to become profitable sometime in 2021.

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In addition to struggling with reduced demand for rides during the pandemic, Uber has been hit with lawsuits challenging the way it treats its drivers.

California’s Labor Commissioner Lilia Garcia-Brower filed complaints against Uber and Lyft Wednesday saying the companies committed wage theft by misclassifying employees as independent contractors. The suit seeks to recover civil penalties and unpaid overtime and minimum wage.

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